Bio-based fertilizers promise a greener future but face high costs, regulatory gaps and acceptance barriers. Clear definitions, bold policies, and targeted subsidies are key to turning this sustainable solution into a market success, experts say

Production of synthetic nitrogen fertilizers alone accounts for approximately 2% of the world's energy use, and some 1.3% of global CO2 emissions. Most mineral fertilizers are based on limited and finite resources, whose reserves are in countries outside the EU, and their manufacturing relies on importing significant quantities of natural gas. Additionally, their over – or improper use can harm terrestrial, marine and freshwater ecosystems, by reducing biodiversity and causing eutrophication, soil acidification and soil nutrient depletion. "People need to understand that European agriculture is not sustainable, and the fertilizer industry is not self-sufficient. You cannot grow plants without the three main nutrients – nitrogen, phosphorus and potassium. But we import gas to produce nitrogen fertilizer and rely on phosphate rock, a critical raw material, that cannot be sourced indefinitely," says Ana-Marija Špicnagel.

Director of IPS Konzalting, a Croatian-Belgian consultancy specialising in agricultural, renewable sources and wastewater treatment, Špicnagel and her team coordinated the position paper "How to boost bio-based fertilizers (BBFs) in the European market", which was jointly issued by the EU funded projects WALNUT, Fertimanure, Lex4Bio, Sea2Land, and Rustica. "There are four main factors determining whether bio-based fertilizers can succeed in the market: agronomic, technical, economic, and societal challenges," she explains. While regulations lag far behind the actual needs for the development of these products, research is working hard and technology is advancing. “Still, scaling up solutions from the pilot phase to full operational levels is often challenging, and this is also due to lack of investment and misperception of bio-based fertilizers," adds Isabel Gonzalez García, an environmental engineer for the Spanish technological institute ITACyL, which is developing the recommendation section of a white paper on the acceptance of bio-based fertilizers, within the European project Walnut.

From an economic point of view, one of the major challenges is the competition with mineral fertilizers. Smaller production scale, significant research and development investments, and the use of advanced technologies are among the main factors contributing to making bio-based fertilizers more expensive. "Currently, they cannot compete with the price of manure or standard mineral fertilizers because the industry is still in its infancy, and production processes remain costly. But as we aim to move toward sustainability, this is a challenge we had to address," says Špicnagel. Her report, after examining various options, thus concluded with a recommendation for "a comprehensive set of subsidies that address various aspects of BBFs production, from input costs to market development," to make them more economically viable and facilitate the market's transition to sustainable practices. A similar strategy has already proven effective in supporting the initial development of the biogas sector, she recalls, suggesting that testing this subsidising scheme through pilots in different EU countries could be the first step of a structured approach, hopefully leading to its embedment in the Common Agricultural Policy.

Still, even though fertilization is one of the biggest operations costs for farmers, price is for them an "important but not decisive" factor. "The situation changed drastically in 2020, when borders were closed because of the Covid pandemic," recalls Špicnagel. "Until then mineral fertilizers could circulate and were available all across Europe without restrictions, but all of a sudden farmers realised they had to find other solutions." Likely due to the combined effects of lockdowns, shipping disruption and temporary price surge triggered by the invasion of Ukraine, after a 200-300% increase between 1970 and 2010, the use of mineral fertilizers recorded in 2022 a 10.3 % year-on-year reduction. "We observed not only a shift in end-users' attitude but also in what they prioritise when choosing fertilizers. It's not just about price anymore. Farmers are often willing to pay more if the product is reliable, offers better nutrient release, reduces the risk of crop diseases and provides other agronomic benefits," she adds.

Yet, a major obstacle remains in engaging stakeholders and end-users: "Nobody is entirely sure what bio-based fertilizers are," says García. "They are often mistaken for organic fertilizers or bio-stimulants, and there is no clear or universally accepted definition. Wherever you look, even on Google, you find different answers." If you want to reach the final consumers and gain their trust, the first step is to provide a clear definition of what the product is, along with its characteristics and advantages over mineral fertilizers. She stresses: "Training, workshops and other educational initiatives should emphasise that these products are not only safe but also profitable. They should highlight how the quality of the soil will improve and how farmers' investments will pay off over time through increased yields." As investors, end-users should be reassured, but for this to happen, governments must be fully committed. "They should issue clear guidelines, provide applications to answer farmers' questions, etc.," suggests García. "Everything is interconnected: the support of authorities and policymakers is crucial for the markets to follow, and once you have the farmers' trust, the public opinion will evolve too."

For this to be possible all the available knowledge must be made accessible first of all to policymakers. A vast amount of work is being done through research projects, but this information needs to be organised, summarised and promoted using interactive communication channels. "We suggest setting up a platform that gathers all these results and presents them in an easily understandable format. And the same approach could be applied to business models: we are currently collecting examples that have proven to work best, with the idea of making them available for replication," continues García, echoing a similar initiative recommended by Špicnagel. "One of the tools we propose in our position paper is a European database of all bio-based fertilizers produced across the continent. This would help match supply with demand, thereby supporting and expanding sustainable practices," she says.

Research is advancing fast, technology is progressing quickly and efforts are being stepped up, but to foster acceptance and uptake of bio-based fertilizers many challenges are still ahead. "Much more needs to be done in terms of economics, marketability and knowledge transfer," exhorts Špicnagel. "We need to carve out space for such fertilizers within the Common Agricultural Policy, promote them to a broader audience and develop branding strategies to enhance their visibility and market potential." Updating the regulatory framework is the top priority, which García flags to the European policymakers: "The 2019 EU Fertilizer Regulation opens the door to bio-based fertilizers but fails to recognise them in the same way as mineral and organic fertilizers, for example. The first step would be to include them in the European law, so that they are clearly acknowledged as legitimate products," she concludes.

Contacts:

Project coordinator:
Francisco Corona Encinas, PhD FUNDACIÓN CARTIF - fraenc@cartif.es
Communication Manager:
Francesco Agresta, ICONS - info@walnutproject.eu

Project website: https://walnutproject.eu/
LinkedIn: WALNUT
Twitter: @walnut_project