The current centralized configuration of the ammonia industry makes the production of nitrogen fertilizers susceptible to the volatility of fossil fuel prices and involves complex supply chains with long-distance transport costs. An alternative consists of on-site decentralized ammonia production using small modular technologies, such as electric Haber-Bosch or electrocatalytic reduction. Here we evaluate the cost-competitiveness of producing low-carbon ammonia at the farm scale, from a solar agrivoltaic system, or using electricity from the grid, within a novel global fertilizer industry. Projected costs for decentralized ammonia production are compared with historical market prices from centralized production. We find that the cost-competitiveness of decentralized production relies on transport costs and supply chain disruptions. Taking both factors into account, decentralized production could achieve cost-competitiveness for up to 96% of the global ammonia demand by 2030. These results show the potential of decentralized ammonia technologies in revolutionizing the fertilizer industry, particularly in regions facing food insecurity.
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