Techno-economic optimization of renewable urea production for sustainable agriculture and CO₂ utilization

Abstract Urea is the most used nitrogen fertilizer due to its ease of storage, transportation, and application. It is made by combining ammonia and carbon dioxide (CO₂), both of which are produced predominantly from fossil fuels at present. The recent momentum behind ammonia production using renewable-powered electrolysis offers an opportunity to both make urea in a more sustainable way and utilize CO₂ from external sources. In this work, we present a techno-economic optimization model to minimize the cost of making urea in this way. The model allows for time-varying chemical production in response to renewable variability by simultaneously optimizing production facility design and hourly operation. We performed a case study for Minnesota considering the use of byproduct CO₂ from bioethanol production. We found that the present-day levelized cost of renewable urea is between $268 mt⁻¹ and $413 mt⁻¹ at likely implementable production scales up to 250 000 mt yr⁻¹. This is within the range of historical conventional urea prices while offering at least 78% carbon intensity reduction. Projecting to 2030, there is a clear economic case for renewable urea production with levelized cost as low as $135 mt⁻¹ due to technology improvement and electrolysis manufacturing expansion, facilitating a urea production scale increase to 525 000 mt yr⁻¹. Optimal facilities use wind energy, with hydrogen and ammonia production operating in a flexible, time-varying way to minimize battery and hydrogen storage capacities. Urea production operates near steady state due to the relatively low cost of intermediate ammonia buffer storage. A mix of imported methane and locally produced hydrogen are used to provide heat for steam consumed in the urea synthesis.