Yara and Trafigura to explore clean ammonia potential

It is essential to reduce emissions in the shipping industry in the fight against global climate change.

Trafigura Pte Ltd, a major commodity trader, and Yara International ASA, a leading ammonia company, will collaborate on using ammonia as a clean fuel in shipping and explore the potential opportunities in the green and blue ammonia market.

Under the MoU, Yara will supply clean ammonia to Trafigura. In addition, both partners will jointly take initiatives for using clean ammonia as a marine fuel, developing infrastructure and exploring market opportunities in the clean ammonia business.

Both Yara and Trafigura have taken several steps to progress towards making the transition to a greener economy a reality. For the first time, the two companies intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain.

Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said, “Building clean ammonia value chains is critical to facilitate the transition to zero-emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities.”

Jose Maria Larocca, Executive Director in Trafigura, said, “There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential.”

Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels. Yara produces about 8.5 million tonnes/year of ammonia, operates 11 ammonia carriers, including five fully owned ships, and owns 18 marine ammonia terminals with 580k tonnes of storage capacity.

Ammonia does not emit carbon dioxide during combustion, and the term clean ammonia comprises both blue and green ammonia. Blue ammonia is produced through the carbon capture and storage process (CCS), whereas green ammonia is made by using hydrogen sourced from renewable energy as feedstock.

Last month, Yara also signed an MoU with Jera Co., Inc, Japan’s largest power generation company, to collaborate on the production, delivery and supply chain development for clean ammonia to help decarbonise thermal power generation in Japan.

Shahkar Ali

Shahkar is the regional representative for Asia covering the hydrogen industry for H2 Bulletin. Please click on the email icon to contact him directly via email or follow him on social media.
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