Integration of environmental, social and governance (ESG) into the supply chain of ammonia: Case study of Africa

Ammonia is a cornerstone of global agricultural productivity, yet its traditional production and distribution systems remain highly centralised, carbon-intensive, and often inaccessible in under-resourced regions. An integration of ESG factors into a decentralised ammonia supply chain model, using A...

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Main Authors: Nam Nghiep Tran, Lucy Kate Penna, Isla May Heath, Muhammad Yousaf Arshad, Marc Escribà Gelonch, Jose Luis Osorio Tejada, Mohammad Mohsen Sarafraz, John Suberu, Martin Fregene, Bernard Rolfe, Volker Hessel
Format: Article
Language:English
Published: Elsevier 2025-12-01
Series:Sustainable Futures
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Online Access:http://www.sciencedirect.com/science/article/pii/S2666188825004587
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author Nam Nghiep Tran
Lucy Kate Penna
Isla May Heath
Muhammad Yousaf Arshad
Marc Escribà Gelonch
Jose Luis Osorio Tejada
Mohammad Mohsen Sarafraz
John Suberu
Martin Fregene
Bernard Rolfe
Volker Hessel
author_facet Nam Nghiep Tran
Lucy Kate Penna
Isla May Heath
Muhammad Yousaf Arshad
Marc Escribà Gelonch
Jose Luis Osorio Tejada
Mohammad Mohsen Sarafraz
John Suberu
Martin Fregene
Bernard Rolfe
Volker Hessel
author_sort Nam Nghiep Tran
collection DOAJ
description Ammonia is a cornerstone of global agricultural productivity, yet its traditional production and distribution systems remain highly centralised, carbon-intensive, and often inaccessible in under-resourced regions. An integration of ESG factors into a decentralised ammonia supply chain model, using Africa as a case study to highlight broader global relevance and overcoming a research gap in financial engineering and business strategies. The research investigates the feasibility of deploying small-scale, locally distributed production facilities as an alternative to conventional large-scale models, particularly in regions facing high transport costs and limited infrastructure. Innovative, low-emission technologies, such as high thermal plasma, mini-Haber-Bosch systems and others are evaluated for their techno-economic potential, including the application of environmental credits and future carbon tax scenarios. A comprehensive supply chain simulation demonstrates that decentralised ammonia production can achieve competitive costs of USD 232 per tonne when ESG-aligned strategies are applied. Beyond cost-efficiency, the study offers a strategic framework to operationalise ESG integration in global fertiliser supply chains, with implications for climate resilience, local economic development, and long-term food security in emerging markets.
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institution Kabale University
issn 2666-1888
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publishDate 2025-12-01
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spelling doaj-art-ab8f7fe9479f4711a8264ae8966ceea02025-08-20T03:32:20ZengElsevierSustainable Futures2666-18882025-12-011010089310.1016/j.sftr.2025.100893Integration of environmental, social and governance (ESG) into the supply chain of ammonia: Case study of AfricaNam Nghiep Tran0Lucy Kate Penna1Isla May Heath2Muhammad Yousaf Arshad3Marc Escribà Gelonch4Jose Luis Osorio Tejada5Mohammad Mohsen Sarafraz6John Suberu7Martin Fregene8Bernard Rolfe9Volker Hessel10School of Chemical Engineering, The University of Adelaide, South Australia 5005, Australia; Department of Chemical Engineering, Can Tho University, Can Tho 900000, Vietnam; Corresponding authors at: School of Chemical Engineering, The University of Adelaide, South Australia 5005, Australia.School of Chemical Engineering, The University of Adelaide, South Australia 5005, AustraliaSchool of Chemical Engineering, The University of Adelaide, South Australia 5005, AustraliaSchool of Chemical Engineering, The University of Adelaide, South Australia 5005, AustraliaHigher Polytechnic Engineering School, University of Lleida, Igualada, SpainSchool of Engineering, University of Warwick, Coventry, London, UKSchool of Engineering, Deakin University, Waurn Ponds Campus, Geelong, AustraliaDepartment of Chemical Engineering and Biotechnology, University of Cambridge, Cambridge CB3 0HE, UKDepartment of Agriculture and Agro-Industry, African Development Bank, Abidjan, C..te d'IvoireSchool of Engineering, Deakin University, Waurn Ponds Campus, Geelong, AustraliaSchool of Chemical Engineering, The University of Adelaide, South Australia 5005, Australia; School of Engineering, University of Warwick, Coventry, London, UK; Corresponding authors at: School of Chemical Engineering, The University of Adelaide, South Australia 5005, Australia.Ammonia is a cornerstone of global agricultural productivity, yet its traditional production and distribution systems remain highly centralised, carbon-intensive, and often inaccessible in under-resourced regions. An integration of ESG factors into a decentralised ammonia supply chain model, using Africa as a case study to highlight broader global relevance and overcoming a research gap in financial engineering and business strategies. The research investigates the feasibility of deploying small-scale, locally distributed production facilities as an alternative to conventional large-scale models, particularly in regions facing high transport costs and limited infrastructure. Innovative, low-emission technologies, such as high thermal plasma, mini-Haber-Bosch systems and others are evaluated for their techno-economic potential, including the application of environmental credits and future carbon tax scenarios. A comprehensive supply chain simulation demonstrates that decentralised ammonia production can achieve competitive costs of USD 232 per tonne when ESG-aligned strategies are applied. Beyond cost-efficiency, the study offers a strategic framework to operationalise ESG integration in global fertiliser supply chains, with implications for climate resilience, local economic development, and long-term food security in emerging markets.http://www.sciencedirect.com/science/article/pii/S2666188825004587ESGAfricaAmmoniaFertiliserSupply chainPlasma
spellingShingle Nam Nghiep Tran
Lucy Kate Penna
Isla May Heath
Muhammad Yousaf Arshad
Marc Escribà Gelonch
Jose Luis Osorio Tejada
Mohammad Mohsen Sarafraz
John Suberu
Martin Fregene
Bernard Rolfe
Volker Hessel
Integration of environmental, social and governance (ESG) into the supply chain of ammonia: Case study of Africa
Sustainable Futures
ESG
Africa
Ammonia
Fertiliser
Supply chain
Plasma
title Integration of environmental, social and governance (ESG) into the supply chain of ammonia: Case study of Africa
title_full Integration of environmental, social and governance (ESG) into the supply chain of ammonia: Case study of Africa
title_fullStr Integration of environmental, social and governance (ESG) into the supply chain of ammonia: Case study of Africa
title_full_unstemmed Integration of environmental, social and governance (ESG) into the supply chain of ammonia: Case study of Africa
title_short Integration of environmental, social and governance (ESG) into the supply chain of ammonia: Case study of Africa
title_sort integration of environmental social and governance esg into the supply chain of ammonia case study of africa
topic ESG
Africa
Ammonia
Fertiliser
Supply chain
Plasma
url http://www.sciencedirect.com/science/article/pii/S2666188825004587
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