Clean Fuel Yara Partners with Trafigura for Development of Ammonia

Editor: Ahlam Rais

Under a MOU signed between Yara and Trafigura, both the companies will work together to develop and promote the use of ammonia as a clean fuel for the shipping industry. They also intend to collaborate on clean ammonia fuel infrastructure and market opportunities.

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Yara’s ammonia plant in Porsgrunn, Norway.
Yara’s ammonia plant in Porsgrunn, Norway.
(Source: Yara)

Oslo/Norway – Trafigura and Yara International have signed a Memorandum of Understanding to collaborate on the development and promotion of the use of ammonia as a clean fuel in shipping. They will also explore possible opportunities to work together on certain clean (green and blue) ammonia fuel infrastructure and market opportunities.

Reducing shipping emissions is a vital component of the fight against global climate change, yet greenhouse gas emissions from the global maritime sector are increasing. The Fourth IMO Greenhouse Gas study, published in August 2020 predicts that emissions could increase by as much as 130 % by 2050 compared with 2008 levels. To reverse this alarming trend, the ships in use, the fuels that power them and the related infrastructure all need to change as the industry transitions to low or zero-carbon maritime fuels.

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

Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura

Both Yara and Trafigura have taken a number of 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 NH3 value chain.

Under the recent MOU announced, Trafigura and Yara intend to collaborate in the following areas:

  • The supply of clean ammonia by Yara to Trafigura Group companies
  • Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
  • Development of new clean ammonia assets including marine fuel infrastructure and market opportunities

Another ammonia plant by Yara in Porsgrunn, Norway.
Another ammonia plant by Yara in Porsgrunn, Norway.
(Source: Yara)

“This agreement is another good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. 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. Demand and supply of clean ammonia need to be developed in tandem,” says Magnus Krogh Ankarstrand, President of Yara Clean Ammonia.

“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,” said Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.

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