Trafigura and Yara sign memorandum of understanding for
Oslo and Singapore, June 7 2021: Trafigura Pte Ltd (“Trafigura“), one of the world’s leading independent commodity trading companies, and Yara International ASA (“Yara“), a leading global player in ammonia, have signed a Memorandum of Understanding to collaborate on the development and promotion of the use of ammonia as a clean fuel in maritime transport and to explore possible opportunities to work together on some clean ammonia (green and blue) fuel infrastructure and market opportunities.
Reducing emissions from shipping is a critical part of tackling global climate change, but greenhouse gas emissions from the global shipping sector are on the rise. The IMO’s fourth greenhouse gas study, published in August 2020, predicts that emissions could increase by up to 130% by 2050 from 2008 levels. To reverse this alarming trend, ships Used, the fuels that power them, and the associated infrastructure must all change as the industry shifts to low- and zero-carbon marine fuels.
Yara and Trafigura have taken a number of steps to move forward towards achieving the transition to a greener economy. For the first time, the two companies intend to collaborate on initiatives that will dominate the clean ammonia value chain.
As part of the MoU announced today, Trafigura and Yara intend to collaborate in the following areas:
- The supply of clean ammonia by Yara to the companies of the Trafigura Group
- Exploration of joint R&D initiatives for the application of clean ammonia 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-sector collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. Creating clean ammonia value chains is essential for facilitate the transition with zero fuel emissions in save hydrogenYes – notat least in trade and distribution where Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia must be developed in tandem, ” says Magnus Krogh Ankarstrand, President of Yara Clean Ammonia.
“There is growth consensus this hydrogen-based fuels will ultimately be the transportation 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 co-sponsored the R&D of MAN Energy Solutions’ ammonia engine for marine vessels, carried out extensive studies on transport fuels with reduced greenhouse gas emissions and published a white paper on the need for a global carbon tax for fuels for maritime transport will be introduced by the International Maritime Organization.
Yara is a global ammonia leader, with long experience and leading positions in the global production, logistics and trade of ammonia. The Oslo-based company produces around 8.5 million tonnes of ammonia per year. Yara employs a fleet of 11 ammonia carriers, including 5 wholly owned vessels, and owns 18 marine ammonia terminals with a storage capacity of 580 kt, which enables it to produce and deliver ammonia in the whole world. Yara recently set up a new clean ammonia unit to seize growth opportunities in emission-free fuels for shipping and electricity, carbon-free fertilizers and ammonia for industrial applications.
For more information, please contact:
Yara Press Office:
Thor Giæver, SVP Investor Relations
Mobile: (+47) 480 75 356
Email: [email protected]
Josiane Kremer, Director of External Communications
Mobile: (+47) 481 80 451
Email: [email protected]
Trafigura press office:
Phone: +41 (0) 22 592 4528
Email: [email protected]
Yara develops her knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger and a respected planet, we pursue a strategy of sustainable growth in value, promoting climate-friendly crop nutrition and zero-emission energy solutions. Yara’s ambition is focused on growing a climate-positive food future that creates value for our customers, shareholders and society as a whole and provides a more sustainable food value chain.
To achieve our ambition, we have taken the lead in developing digital agricultural tools for precision farming and are working closely with partners across the food value chain to improve the efficiency and sustainability of food production. By focusing on clean ammonia production, we aim to enable the hydrogen economy, driving a green transition of shipping, fertilizer production and other energy-intensive industries.
Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the only global crop nutrition industry company. We operate an integrated business model with approximately 17,000 employees and operations in over 60 countries, with a proven track record of strong returns on investment. In 2020, Yara achieved a turnover of 11.6 billion USD. Visit: www.yara.com
Founded in 1993, Trafigura is one of the largest physical commodity trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including petroleum and refined products, metals and minerals) to customers around the world and has recently established an energy trading division and renewable energies.
The trading activity is supported by industrial and financial assets, in particular majority stakes in Nyrstar, Puma Energy, Impala Terminals and Trafigura Mining. Trafigura is co-owner of TFG Marine, a global marine fuel supply and supply joint venture, also owned by shipowners Frontline Ltd and Golden Ocean Group Ltd. The combined demand for marine fuel from Trafigura, Frontline and Golden Ocean, covering a fleet of some 700 owned and chartered vessels, offers economies of scale and lays the foundation for TFG Marine to become one of the world’s largest supply alliances. and fuel supply to the world, generating substantial demand at the world’s major refueling ports.
More than 8,500 employees work in 48 countries around the world. Trafigura has experienced substantial growth in recent years, increasing its turnover from $ 12 billion in 2003 to $ 147 billion in 2020. The group has connected its customers to the global economy for more than two decades, increasing the prosperity by advancing trade. Visit: www.trafigura.com
Yara ammonia plant in Porsgrunn, Norway (01)
Yara ammonia plant in Porsgrunn, Norway (02)