Urea:
Urea is used in Biotech applications as a protein denaturant, however over 90% of the global urea manufactured is used as a fertilizer. Urea is basically two ammonia molecules reacted with a carbon dioxide to form a solid nitrogen source. This form is important because ammonia (gas) is poisonous and difficult to transport; transforming ammonia into urea makes transportation safer.
Market Dynamics:
Nitrogen is one of the key nutrients in fertilizer with urea being a key nitrogen source. Approximately 90% of the global urea market is used as a fertilizer. Because urea uses ammonia gas as a building block, urea plants are typically located near ammonia plants. Further, ammonia production relies heavily on natural gas, which is also difficult to transport, making ammonia and urea plants located near natural gas resources.
Up Stream Materials/Building Blocks:
Ammonia
Carbon Dioxide
Hydrogen
Natural Gas
Nitrogen
Down Stream Materials Consuming Urea:
Fertilizers
Urea nitrate (an explosive)
Polymers:
-Urea-formaldehyde resins
-Urea-melamine-formaldehyde
Marine plywood