DA eyes coal-to-urea plant in Semirara, seeks $1-M ADB grant for study

The Department of Agriculture (DA) is eyeing to put up a coal-to-urea fertilizer plant in Semirara Island in Antique to reduce the country's dependence on importing farm inputs, effectively reducing production costs for local farmers.

"Mayroon tayong binabalak na magtatayo tayo ng manufacturing for fertilizer (We are planning to establish a manufacturing plant for fertilizer)," DA Undersecretary for Operations Roger Navarro said at a press briefing in Quezon City on Tuesday.

Navarro said the fertilizer plant, which will use a coal-to-urea technology, will be the DA's long-term plant to respond to the rising fertilizer costs brought about by the Middle East conflict.

Data from the DA showed that as of April, the price of a 50-kilo bag of urea surged by about 50% to about P2,600 from P1,700 a month before US and Israel launched airstrikes against Iran on February 28.

"We have to produce our own fertilizer," Navarro said.

ADB funding

DA spokesperson Assistant Secretary Arnel de Mesa said the Agriculture Department is now in talks with the Asian Development Bank (ADB) to seek grant funding for a feasibility study for the planned coal-to-urea fertilizer plant.

De Mesa said the ADB has "approved in principle" a $1-million grant for the feasibility study on the technical and financial viability of putting up a fertilizer plant.

"If we finish the study by August or September then we can break ground maybe by November or December… By 2027, we will be able to put up the plant, and before the end of 2027 we will have our own urea fertilizer plant," Navarro said. — VDV, GMA News