Ann: Annual Financial Report, page-35

Hi guys

Here is something for you to ponder. If this gains traction throughout the Western World, what do you think the solid urea industry will look like in say five or ten years time, not to mention 2030? Do you still think that it is worth a $2.6 billion punt? J L.

UK - Department for Environment, Food and Rural Affairs

Consultation on reducing ammonia emissions from solid urea fertilisers - A response will be published this summer.

"Ammonia is an air pollutant that is detrimental to our natural environment and is a pre[1]curser to particulate matter, which is detrimental to human health. Our statutory obligations to restore our degraded habitats and to reduce our ammonia emissions by 8% by 2020 and by 16% by 2030, mean that we must act urgently to tackle our ammonia emissions. As ammonia emissions are predominantly from agriculture (87%) and around 8% are from the use of solid urea fertilisers, our approach is to regulate the use or sale of sold urea fertilisers via the following options:

a. Option 1: to ban the use or sale of solid urea fertilisers, which emit more

ammonia than other fertilisers. This gives us the most amount of ammonia

emission reductions.

b. Option 2: to require the use of urease inhibitors, which help to reduce ammonia

emissions from solid urea fertilisers. This gives us less ammonia emission

reductions than Option 1.

c. Option 3: to allow the spreading of solid urea fertilisers only between 15

January and 31 March when soils are predominantly cold, which reduces

ammonia loss. This option gives us the least amount of ammonia emissions

reductions."

Germany

Dr. Katharina Baumeister Corporate Communications Center Technische Universität München

“Germany is the first country to already require the addition of urease inhibitors to granulated urea through the 2020 National Fertilizer Ordinance.

The European Union requires mandatory ammonia emission reductions from all member countries by 2030.”