Trafigura, one of the world’s leading independent commodity trading companies, and Yara, a leading 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, says in article published on their website.
Why this MoU?
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.
Collaboration
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 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.
What Yara partnership brings?
Yara brings to the partnership its experience producing 8.5 mln tonnes of ammonia a year, employing 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.
Summary
- Trafigura and Yara have signed a Memorandum of Understanding (MoU) to develop and promote ammonia as a clean fuel for shipping.
- 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, exploration of joint R&D initiatives for clean ammonia application as a marine fuel, and development of new clean ammonia.
- 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.
Did you subscribe to our daily newsletter
It’s Free! Click here to subscribe!
Source: trafigura.com
