The turmoil in the Middle East has sent shock waves around the world and although the attention has been primarily on fuel shortages, supply constraints for nitrogen fertiliser have become critical as well.
New Zealand’s primary sector is heavily dependent on inputs of urea, which is made from fossil gas, to increase pasture productivity and ensure consistent feed for livestock, as well as for growing arable crops and produce for domestic markets. The sharp increases in price for bulk fertiliser, together with reduced quantities on the market, are putting pressure on farmers at the same time that they are being hit with the surging cost of diesel.
Rather than focus on replacing urea supply from alternative sources, which carry their own uncertainties and significant costs to manufacture, we could instead be helping the primary sector reduce its reliance on urea. Biochar, a form of charcoal made from wood or other biomass, has the ability to reduce the need for supplemental nitrogen by 20% when applied to soil, and brings a host of other benefits as well.
The porous structure of biochar is a natural sponge, highly effective in trapping dissolved nutrients like nitrate and retaining them where they remain available to plant roots. A direct consequence of this property is that the excess nitrogen stays in the soil instead of leaching into groundwater, where it ultimately contaminates aquifers and leads to polluted waterways and health risks. Biochar is also a durable and safe form of carbon storage, and when produced at scale it is an effective climate mitigation tool.
Biochar Network New Zealand (BNNZ) is urging the Government to help massively scale up the production of biochar through targeted investment via the Ministry for Primary Industries. “Abundant biomass sources are in place all around the country in the form of forestry residues, and the production of biochar at commercial scale also yields useful energy for electricity generation and process heat,” says Phil Stevens, BNNZ Chair. “The industry is still in early stages of development and limited capital is the main factor holding back growth.”
Media Releas 28 April 2026.