A bifurcated market with significant growth potential.
Sulphate of Potash (SOP, chemical formula K2SO4) is a source of low-chloride potassium favoured by growers of chloride intolerant crops. These crops are typically higher value fruit and vegetable crops such avocados, strawberries, citrus and tomatoes. As living standards improve, consumption of these crops increases at a faster rate than broad acre staples such as wheat and rice. This dynamic, in conjunction with a general under-application of low chloride potassium fertilisers globally underpins the growth potential of the SOP market relative to other crop nutrients.
More than half of global SOP production is derived by reacting Muriate of Potash (MOP, chemical formula KCl) with sulphuric acid in a Mannheim furnace at temperatures above 700 degrees celsius, yielding both potassium sulphate and hydrochloric acid. Due to the high input costs, energy intensity and waste disposal costs of this process, it is typically higher cost than primary SOP production from brine evaporation.
