Feeding The Fuel Crop: Fertilisers Are Powering More Than Just Food

The European Union is facing increasing pressure on its fertiliser supply amid geopolitical tensions in the Middle East and ongoing demands from biofuel production. The EU Commission has proposed stockpiling fertilisers to safeguard agricultural and energy security, as biofuel feedstocks continue to consume significant amounts of key nutrients. Despite policy efforts to limit crop-based biofuels, nearly half of the biofuels used in the EU and UK still derive from food crops such as rapeseed, wheat, corn, and sugar, all of which require substantial fertiliser inputs to maintain high yields. Current estimates suggest that biofuel production accounts for around 8% of the total fertiliser nutrients used in the EU and UK, including nitrogen, phosphate, and potash. However, the bloc is heavily reliant on imports for these essential fertilisers, with import dependency reaching up to 70% for phosphate. Recent regulatory changes, including the EU’s Carbon Border Adjustment Mechanism (CBAM), have aimed to reduce reliance on imported, carbon-intensive fertilisers. Yet, the sudden Middle East crisis has disrupted markets and pushed nitrogen fertiliser prices sharply higher, compounding challenges for farmers. Transport & Environment (T&E) emphasises the urgency of balancing short-term responses with long-term sustainability in managing fertiliser supply. They advocate maintaining current limits on crop-based biofuels and prioritising nutrient use for food production rather than fuel. T&E also calls for redirecting agricultural subsidies away from biofuel crop fertilisation towards supporting domestic, cleaner fertiliser production and incentivising environmentally friendly farming practices to enhance resilience and reduce fertiliser dependency. The unfolding situation highlights the complex interplay between energy, agriculture, and geopolitics in Europe’s transition to cleaner fuels. The EU Fertiliser Action Plan is seen as a critical tool to strengthen domestic supply chains and promote circular nutrient use. Moving forward, policymakers will need to carefully navigate these competing demands to ensure food security while meeting climate and energy goals without exacerbating fertiliser supply vulnerabilities.