Trafigura and Yara International have signed a MoU to promote ammonia as a clean fuel in shipping

7 June 2021

Trafigura Pte Ltd, one of the world’s leading independent commodity trading companies, and Yara International, a global ammonia player, have signed a Memorandum of Understanding to collaborate on the development and promotion of the use of ammonia as a clean fuel in shipping and to explore possible opportunities to work together on certain clean (green and blue) ammonia fuel infrastructure and market opportunities.

Under the MoU announced today, 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.

“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 a clean ammonia value chain is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy. 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.

Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels,  performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by the International Maritime Organization.

Yara is a world leader in ammonia, with long experience and leading positions within global ammonia production, logistics and trade. The Oslo-based company produces roughly 8.5 million tonnes of ammonia annually. Yara employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity, enabling it to produce and deliver ammonia across the globe.

Author: KS / Source: Trafigura / Photo: Unsplash