In this exclusive interview for the New AG International e-book on SCRSFs, Taylor Pursell, Chairman of Pursell Agri-Tech, talks to Editor-in-Chief Luke Hutson on the role that enhanced efficiency fertilizers can play in global agriculture.
Taylor Pursell, Pursell Agri-tech
Taylor Pursell’s was a tulip garden from the Netherlands. And this was a point of connection. We met at the Stamicarbon Future Day in Utrecht, Netherlands, held in April 2019. His background picture for Zoom was taken the next day at Keukenhof Gardens. In his presentation, Pursell showed a timeline of breakthroughs in fertilizer technology (see chart). The striking thing about this chart – and its impact came precisely because it was in chart format - was that it has been some decades since a major step-change has been made. Rather mischievously, Pursell annotated the chart ‘Mind the Gap’ – because it’s a bit more than a gap in terms of time. Ammonium phosphate was the last major fertilizer development in 1959 from the chart. When we reconnect, Pursell points out that in the commodity fertilizer world the capital investment is huge. Payback periods will typically be over 20 years or more.
Chart showing Diammonium phosphate (DAP) as the last major fertilizer development, in 1959. Source: Pursell Agri-Tech
Tech on the Tennessee Technology has been in the blood of the Pursell business almost since its inception, founded by Pursell’s great grandfather in 1904. But how did a coated fertilizer business become established in Alabama? Pursell and the town of Sylacauga are interlinked but you need a bit of background and a map to see the picture clearly. Pursell Agri-Tech is in Sylacauga, and it is 2 miles down the road from the original Pursell Technologies site. This facility has passed through several hands. In 2006, Agrium (now Nutrien) acquired Pursell Technologies and took over the site. Agrium then sold the business to Koch Agronomic Services in 2014, and in 2019 Koch sold on to Harrell’s Fertilizer Inc who will continue the production of the POLYON brand. Close by is Muscle Shoals and the National Fertilizer Development Center (NFDC), which was part of the Tennessee Valley Authority. The TVA was the site of the first Haber Bosch production of ammonia in the USA in 1918, and this was used to make ammonium nitrate (Ref 1). TVA was where sulphur coated urea (SCU) was developed in the 1960s. The fertilizer complex at TVA became the NFDC in the 1960s and then the site for the International Fertilizer Development Centre (IFDC) in 1974. In May 1990 the large-scale fertilizer production facilities at TVA were closed and replaced by small-scale prototype plants (Ref 2). “We were close to the TVA laboratory, so we were their guinea pigs,” recalls Pursell. “My grandfather and father were looking at [fertilizer] through a different lens.” Pursell even remembers loading one of the first bags of sulphur coated urea from TVA onto a truck for the business.
Turf to agriculture For its first 50 years, the Pursell business was a supplier of fertilizer for row crops in Alabama. It then moved into the specialty fertilizer business for consumer products, turf (golf courses) and horticulture, becoming the second largest supplier in the USA, behind The Scotts/Miracle Gro Company (which sold its Osmocote coated fertilizer business to ICL). In 2006, Agrium (now Nutrien) acquired Pursell Technologies to enhance its technology base within its ESN controlled release business segment. So Pursell Agri-Tech is a new incarnation. But still – just to repeat – in Sylacauga. Although it still serves the turf, horticulture and consumer markets, Pursell Agri-Tech’s focus is on broad acre agricultural markets. Along with Stamicarbon it has developed a range of products that are designed for agricultural markets – with the intention of greater nutrient use efficiency (NUE) at cost that provide paybacks to farmers from higher yields. Pursell believes the experience of handling coated fertilizers in specialty markets can be transferred to the agricultural markets. “We need to find ways to get the more efficient controlled release technologies used in specialty markets applicable in broad acre agriculture. The key will be reducing the costs to levels that have financial paybacks to farmers for adoption.” We come back to that point several times during the conversation – namely, the cost per unit. Pursell cites the slim margin for corn at today’s price of around $3.65/bu. “There has to be a payback to the farmer, and this is only going to happen with new, next generation nutrient delivery technologies.”
The question that needs to be asked, Pursell suggests, is simple: are the coated products at a low enough cost to have a shot at agriculture? He suggests a significant reduction in production cost is required for coated fertilizers. They key here would be to bring the coating cost down, says Pursell. Reducing costs will be a result of lowering coating levels, reducing capital costs per ton of capacity as well as supply chain (producing coated fertilizers closer to the substrate producer or the farmer).
Partnering Stamicarbon Pursell Agri-Tech and Stamicarbon have built a commercial demonstration plant at the base in Sylacauga, where they currently produce the company’s coated range, which includes PurYield, for field crops, PurKote for specialty markets and PurForm for fruit and vegetables. Stamicarbon and Pursell are developing a production technique for using urea as a carrier for micronutrients as presented at its Future Day. Stamicarbon has also improved the digitisation of its urea plants leading to greater efficiency and cost savings.
Efficiency gains Enhanced efficiency fertilizers, or EEFs, are seen as a key tool to increase nutrient use efficiency (NUE), and mitigate nutrient losses that can harm the environment. Pursell takes nitrogen as an example. He says the NUE of nitrogen globally (N) is around 50%, so 1 out of every 2 lb applied will be wasted. And that’s an estimate for the USA. He suggests it’s higher for other parts of the world: for Africa and Southeast Asia it is estimated to be as high as 7 out of 10 lbs of N being lost. This has a huge financial and environmental impact on farmers around the world, notes Pursell. In very broad terms, if you assume an approximate global consumption of urea of 160 million product tonnes, that is 80 million tonnes lost, which at $400 per tonne, is a potential loss of $32 bn. Pursell says that the phosphorous industry also has major challenges, adding that only a very small amount of mined phosphorous ever gets to our food. The majority is lost by running off into fresh waterways or is tied up in soils. Since phosphorous is a non-renewable resource, it must be conserved says Pursell. There are also the labour-saving factors. Pursell says coated potash is used for cotton. “Cotton needs about a third of its potassium in the last 30 to 45 days of growth for maximum quality. So, coating allows you to apply at planting and avoiding late season aerial applications of potash,” he explains. But a major factor for coating fertilizers is the local climate conditions. He explains that in South Florida where there is more rain and higher temperatures, more coating is required, and what might last 30 days in Florida, might last 60 days in Wisconsin due to the moisture and temperature conditions.
Competition time In August 2020, a competition was launched through an EPA-USDA partnership to find the next generation of Enhanced Efficiency Fertilizers (EFFs) for use in corn production. Pursell was complimentary and said he takes his hat off to the organisers which included The Fertilizer Institute, The Nature Conservancy, the National Corn Growers Association as well as EPA and USDA. They are trying to guide the industry without regulation, he says enthusiastically. When it comes to improving the environmental load of fertilizers, Pursell observes that the new CEOs of many of the large fertilizer companies are aligned. He notices that the large fertilizer companies are now adopting ESG (Environmental, Social and Governance) policies to become more sustainable companies. He doubts if such a competition would have been possible 20 years ago. “I’m optimistic our industry is going to figure improved nutrient efficiency out. A lot of people are trying to get their arms around it.”
Combined futures One aspect that will no doubt come out in the competition is the approach between coated products and stabilised nitrogen products. “Most coated fertilizers are sold in a blend. If fertilizer on corn contains 30 units of N – then coated urea might account for 75%, and uncoated urea another 25%. The 25% uncoated urea may also be inhibited to reduce volatilization. It probably needs a combination of technologies…each have their place… I don’t think it’s one or the other.” Products adding carbon back to the soil was another function that Pursell found of interest. He expects regenerative agriculture to be a major part of the future in improving soil health. “We must protect and improve our soils.” How about putting a microbe on with the coating? Pursell Agri-Tech does not have a commercial product yet. “But our coating process could be good [for this application]. Our technologies use lower temperatures allowing for including microbial products.” Pursell also looks to the wider benefits of fertilizers, such as micronutrient fortification. As well as soil health, Pursell says fertilizers have a part to play in human health, citing the well-known examples of fertilizer incorporating trace elements, such as zinc and selenium. He notes that there is a lot of research going on to improve the nutrient density of food as well as biofortification of food with micronutrients (e.g., vitamins) unavailable in developing countries.
“What I hope to see in my lifetime is a shift to more nutrient efficiency resulting in higher yields, healthier foods that contain essential micronutrients, and at a low enough cost that it is a no brainer for the farmer to adopt.” ●
Photo caption: Pursell Agri-Tech and its partner Stamicarbon opened a new fertilizer coating facility in Sylacauga, Alabama, in June 2018. Owned by Pursell Agri-Tech, the plant will produce a range of controlled-release fertilizers for various market segments, including turf and ornamental through to broad-acres.
Reference Ref1 Ammonium nitrate reference: https://www.loc.gov/resource/hhh.al1051.sheet/?sp=6
Ref2 Muscle Shoals Reservation Redevelopment Prepared by Tennessee Valley Authority, November 2011
