Trafigura and Yara sign clean ammonia MoU

The companies will also look at opportunities to work together on green and blue ammonia infrastructure and market opportunities.

The MoU specifically covers: 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, and development of new clean ammonia assets including marine fuel infrastructure and market opportunities.

Ammonia has become a frontrunner in shipping’s zero carbon ambitions as the fuel contains no carbon, and so its burning creates no carbon dioxide emissions. The creation of ammonia is an energy-intensive process; green ammonia uses energy from renewable sources to keep overall emissions from the fuel low.

Powering global shipping with ammonia will require a massive investment in ammonia production, infrastructure to enable bunkering in key ports, and regulation both to enable safe handling and use of the fuel and to encourage the shipping industry to abandon more carbon-intensive fuels.

Yara brings to the partnership its experience producing 8.5 mln tonnes of ammonia a year, employing 11 ammonia carriers and 18 marine ammonia terminals; Trafigura is one of the world's largest commodities trading companies 

“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,” said Magnus Krogh Ankarstrand, President of Yara Clean Ammonia.

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“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.