UK fertiliser reliance leaves food production exposed, report warns

UK food production is exposed to global fertiliser price shocks because farmers rely on imports for around 60% of their needs, a new report has warned.

The joint report from Hydrogen UK and the Chemical Industries Association says the UK’s dependence on imported fertiliser leaves the farming sector vulnerable to price spikes and supply disruption.

It argues that low-carbon ammonia could help rebuild domestic fertiliser resilience while reducing emissions from farming supply chains.

Ammonia is central to fertiliser production, making domestic supply a food security issue as well as an emissions issue.

Hydrogen UK and the CIA said low-carbon ammonia, produced using low-carbon hydrogen rather than fossil fuels, could help strengthen UK fertiliser supply chains.

Their report, Hydrogen Derivatives: Building Blocks of the Hydrogen Economy, argues that clean fuels and chemicals made using low-carbon hydrogen could support strategically important sectors of the UK economy.

It highlights Statkraft’s Shetland Ammonia Project as an example of how renewable power could be converted into ammonia for fertiliser and low-carbon marine fuel.

The organisations said the government’s proposed £350 million Critical Chemicals Resilience Fund could support domestic ammonia and fertiliser supply chains if it is designed to back low-carbon industrial production.

The report also points to opportunities in sustainable aviation fuel, methanol and clean shipping fuels, but says ammonia is particularly important for agriculture and fertiliser resilience.

Hydrogen UK and the CIA warned that policy uncertainty could hold back investment in hydrogen-derived fuels and chemicals.

They said sustainable aviation fuel, ammonia, methanol and other Liquid Organic Hydrogen Carriers risk being overlooked by core policy frameworks, despite their importance to aviation, agriculture, shipping, chemicals and energy security.

The organisations are calling for a more joined-up approach across energy, transport, trade, agriculture and industrial policy.

They said clearer market support, faster infrastructure planning and internationally competitive standards would be needed if UK projects are to attract investment.

Steve Elliott, chief executive of the Chemical Industries Association, said the UK was well placed to benefit from low-carbon hydrogen, but industry needed clearer signals from government.

“The UK is well positioned to realise the potential of low-carbon hydrogen,” he said.

He said the opportunity was there to unlock private investment in clean fuels and circular chemicals, while strengthening resilience, material security and economic growth.

Clare Jackson, chief executive of Hydrogen UK, said hydrogen production alone would not capture the full economic opportunity.

“The UK has rightly recognised hydrogen as a strategic technology, but production alone risks missing out on the full economic opportunity,” she said.

“We also need the fuels and chemicals derived from hydrogen as these support vital industries within the UK economy.”

Ms Jackson said the UK had the industrial clusters, ports, engineering expertise and resources needed to lead in the sector, but warned that clearer policy support was needed.

“A joined-up strategy for hydrogen-derived fuels and chemicals would help unlock private investment, strengthen energy security, support UK farming and create huge opportunity across our industrial heartlands,” she said.

The report warns that without clearer policy support, the UK risks remaining dependent on imported fertiliser instead of building cleaner domestic supply chains.