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Trafigura and Yara sign MoU to explore prospects in clean ammonia

Arnes BiogradlijaBy Arnes Biogradlija08/06/20212 Mins Read
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Trafigura, one of the world’s largest independent commodity trading companies, and Yara International ASA, a leading global ammonia player, have signed a Memorandum of Understanding to collaborate on the development and promotion of ammonia as a clean fuel for shipping, as well as to explore potential collaboration on certain clean (green and blue) energy projects.

While reducing shipping emissions is critical in the fight against global climate change, the worldwide maritime sector’s greenhouse gas emissions are increasing. According to the Fourth International Maritime Organization’s Greenhouse Gas study, published in August 2020, emissions might grow by up to 130 percent by 2050 compared to 2008 levels. To halt this dangerous trend, the ships themselves, the fuels they run on, and the infrastructure that supports them must all change as the industry converts to low- or zero-carbon maritime fuels.

Both Yara and Trafigura have taken several efforts to accelerate the transition to a greener economy. The two companies seek to work for the first time on efforts aimed at establishing themselves in the clean ammonia value chain.

Trafigura and Yara seek to engage in the following areas within the terms of the MoU established today: Yara’s provision of clean ammonia to Trafigura Group enterprises Exploration of collaborative R&D projects for the use of clean ammonia as a maritime fuel Development of new clean ammonia assets, including infrastructure and market prospects for maritime fuel.

“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.

“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.

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