Partner and interested nitric acid producers

Why working with NACAG

To stop global warming and comply with international agreements such as the Paris Agreement, national governments must increase their climate ambitions, for example, by introducing obligatory standards or policy regulations in different industrial sectors.

In addition to the introduction of national regulations, the global trend towards climate-friendly transformation will continue to affect global trade. Governments and international entities, for example, the European Union, demonstrate a strong tendency to cooperate and trade with partners that contribute to the Paris Agreement targets and lower their emissions.

For instance, after the decision on introduction of the Carbon Border Adjustment Mechanism (CBAM) by the European Union in 2023, companies importing nitric acid to the EU will have to pay a carbon adjustment or carbon tariff on the imported goods. However, if they can prove mitigation of nitrous oxide emissions, they will be partially or fully exempted from such payment.

In addition, in comparison to emissions from other sectors, nitrous oxide emissions from nitric acid production might be abated at a relatively low-cost ranging from as low as €0.50 to €5.00/tCO2eq.

NACAG’s approach

To be eligible for funding, the government of the country in which the nitric acid or caprolactam plant is located must sign a Statement of Undertaking (SoU), pledging to reduce emissions in the long term. Following this step, NACAG signs a Grant Agreement with the partner plant and finances the procurement and installation of emission abatement technologies and monitoring equipment.

NACAG advises plant operators on technical solutions for emissions reduction best suitable for each production facility. To this end, its experts conduct pre-feasibility studies outlining all possible technical solutions with their advantages and disadvantages.

To sign the Grant Agreement (financing contract), the partner company undergoes a due diligence procedure – an assessment of technical, legal, financial and operational capacities covering environmental, social, health and gender aspects. While serving as a means for safeguarding the financial involvement of GIZ, this procedure identifies potential risks of possible cooperation on the one hand and, on the other hand, presents an opportunity for providing capacity-building services to the partner plants. Nitric acid or caprolactam producers partnering with NACAG, after undergoing this procedure, report positive experiences and valuable outcomes. For instance, NACAG’s partner plant in Mexico used recommendations from Due Diligence procedure to improve and optimize its internal processes.