Urea, also called carbamide in chemical terms, is a very important compound with nitrogen for agriculture and its significance cannot be emphasized enough. Urea is an organic compound that contains the elements carbon (C), nitrogen (N), oxygen (O), and hydrogen (H). Its formula according to chemistry rules is CO(NH2)2. Urea exists as a solid substance, appearing white and crystalline in structure; it has high nitrogen content around 46 percent which makes urea the most concentrated form of nitrogen fertilizer. This feature alone underscores its value to farmers and agricultural producers globally.

Why Should Start Production of Urea from Natural Gas?

The change to make urea from natural gas is not only a progression in technology, it also becomes vital for the fertilizer sector and worldwide agriculture. This move has potential to greatly change how we make urea, giving many good reasons for companies to shift towards this method.

Initially and most importantly, producing urea from natural gas is much more efficient when compared to conventional ways of making it. The new procedures for changing natural gas into urea offer higher rates of output along with less use of energy. The efficiency in this step can mean cost savings for those who make it, and possibly lower prices for farmers who buy fertilizers if they pass on those savings. In a world where people's need for food keeps growing, it is very important to help farmers make crops in a cheaper way.

Moreover, this way of making urea matches with worldwide sustainability goals. Like we have talked about before, the procedure utilizes CO2 - a waste product from changing natural gas into syngas - as an ingredient for making urea. This helps in cutting down on the carbon footprint caused by creating fertilizers. In a time when environment worries are very important, taking up methods that help lessen greenhouse gas emissions is not just good for the environment but also helps companies to be seen as leading in sustainability; this improves their business image and aligns with what consumers and investors expect from them: having more eco-friendly practices

Another strong reason for the change is because of the worldwide availability of natural gas. When we use this plentiful resource, it helps make sure that the fertilizer industry has a constant and lasting supply of feedstock for producing urea. Having this stability is very important to keep making fertilizers without any breaks, which then helps support food safety all over the world. In addition, using a resource that is often available and has less pollution compared to other fossil fuels shows a well-rounded method for fulfilling agricultural requirements and handling environment worries.

Finally, the change to natural gas as a resource for urea production can also boost technological improvements and financial expansion. When companies invest in the necessary advanced technologies for this switch, it encourages new ideas and employment creation which leads to economic growth. This is especially beneficial in areas that have abundant natural gas reserves.

Global Market Outlook

The global urea market size was valued at USD 128.92 billion in 2023 and is projected to grow from USD 123.95 billion in 2024 to USD 160.67 billion by 2032, exhibiting a CAGR of 2.2% during the forecast period. Asia Pacific dominated the urea market with a market share of 66.58% in 2023. Urea is highly used in agriculture sectors as a fertilizer and animal feed across the globe. This material contains about 46% nitrogen, an essential nutrient for the growth and development of crops. Nitrogen is required by crops for green leafy growth, resulting in the healthy development of products necessary for obtaining higher crop yields. Decreasing soil fertility due to natural and anthropogenic factors and increasing population are further demanding the use of effective solutions to increase crop yield, resulting in increased product demand.

The market size of Asia Pacific region was USD 85.84 billion in 2023. There is a huge rise in population in the region, resulting in increased food demand. This has caused an increase in demand for fertilizers to increase crop yield per hectare of agricultural land. Also, increasing use in the animal feed industry is pushing the demand for feed-grade products in the region. All these factors have led to a rise in carbamide production to meet increasing demand. The high share of the region in the global market is attributed to the highest production and consumption in China, followed by India, ASEAN, Japan, and South Korea. Moreover, local governments in the region are assisting farmers by providing subsidies to purchase fertilizers to increase food grain production.

Uses and Application

1.   Fertilizer: It is applied to soil, either alone or along with other fertilizers, for improving soil fertility and increasing harvests.

2.   Leaf Spray: Urea can be dissolved in water and used as a leaf spray for giving quick nitrogen supply to crops, aiding in fast absorption and usage.

3.   Resins and Plastics: Urea is a key component for making urea-formaldehyde resins that are crucial in producing different types of plastics, adhesives, and laminates.

4.   Pharmaceuticals: Urea finds its application in pharmaceuticals for creating barbiturates and other drugs. It's also helpful in topical dermatological items due to its ability to moisturize and remove keratosis.

5.   Animal Feed: Urea is a kind of non-protein nitrogen that we use in animal food, especially for animals with multiple stomachs like ruminants. It helps them make more protein and boosts how fast they grow.

6.   Explosives: Urea acts as a component in the production of specific explosives, like urea nitrate, which find application in mining and construction sectors.

7.   Skin Care Products: Many skin care products contain urea because it helps with hydration, treating issues like dry and rough skin.

Urea is used in the textile industry, specifically for processing textiles like dyeing and printing fabrics to enhance dye's ability to penetrate and fix on materials.

Production Process of Urea from Natural Gas

From natural gas, we produce urea through a series of important phases. It starts with making ammonia and carbon dioxide, then proceeds to the reaction for creating urea. The process is broken down into the following steps:

1.   Natural Gas Reforming

-          Feedstock Preparation: Natural gas (mainly methane) is desulfurized to remove sulfur compounds.

-          Steam Reforming: The gas from natural sources is combined with steam and moved over a catalyst, often made of nickel. This occurs at high temperatures (700-1000°C) to generate synthesis gas which includes hydrogen, carbon monoxide and carbon dioxide.

CH4+H2O→CO+3H2

2.   Water-Gas Shift Reaction

-          A reaction occurs between carbon monoxide and steam. This makes more hydrogen and carbon dioxide in the synthesis gas.

CO+H2O→CO2+H2

3.   Carbon Dioxide Removal

-          The gas mixture's carbon dioxide is taken out, usually with a method called solvent absorption.

4.   Ammonia Synthesis

-          The cleaned hydrogen and nitrogen (obtained from air) are mixed together in the Haber-Bosch method for making ammonia (NH₃).

3H2+N2→2NH3

-          This reaction happens under high pressure (150-200 atm) and high temperature (400-500°C), with an iron-based catalyst.

5.   Urea Synthesis

-          Reaction with Carbon Dioxide: The ammonia that comes out is then put into reaction with the separated carbon dioxide under high pressure and temperature. This creates ammonium carbamate.

2NH3+CO2→NH2COONH4

-          Dehydration: The ammonium carbamate is then dehydrated to form urea.

NH2COONH4→NH2CONH2+H2O

6.   Urea Concentration and Prilling

-          Concentration: The urea solution is concentrated in vacuum evaporators.

-          Prilling: The focused urea melt is sprayed into a prilling tower and it gets transformed into tiny round granules while it falls through an air stream that moves opposite to the direction of its fall.

7.   Storage and Packaging

-          After granulating, the prilled urea is cooled down.

-          The cool prills are screened to eliminate large or small particles.

-          They are now ready for storing or packing.

Conclusion

For the venture of producing urea from natural gas, it is a very good investment option. This opportunity matches well with investors who want to benefit from rising demand for farming solutions that are both productive and environmentally friendly. The investment has potential to provide significant returns because there is an increasing worldwide requirement for top-grade fertilizers, which support food production.

Key Players

v  Coromandel International Limited (India)

v  SABIC (Saudi Arabia)

v  Qatar Fertilizer Company (Qatar)

v  EuroChem (Switzerland)

v  Yara International ASA (Norway)

v  Nutrien AG (Canada)

v  OCI N.V. (Netherlands)

v  Acron Group (Russia)

v  CF Industries Holdings (U.S.)

v  HUBEI YIHUA CHEMICAL INDUSTRY CO., LTD. (China)

v  China National Petroleum Corporation (CNPC) (China)

v  Koch Fertilizer, LLC (U.S.)