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.