Trafigura and Yara collaborate to advance ammonia’s prospects as shipping’s fuel of the future

Commodities trading firm Trafigura and Scandinavian fertiliser giant 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 and to explore possible opportunities to work together on certain green and blue ammonia 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,” said Magnus Krogh Ankarstrand, president of Yara Clean Ammonia.

Demand and supply of clean ammonia need to be developed in tandem

“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, co-head of oil trading for Trafigura.

Yara employs a fleet of 11 ammonia carriers, including five fully owned ships, and owns 18 marine ammonia terminals.

Many of the biggest names in shipping – including Maersk and Eastern Pacific Shipping – have publicly stated their belief that ammonia will be a top fuel of the future in recent months.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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