Trafigura and Yara International signed a Memorandum of Understanding to collaborate on the development and promotion of the use of ammonia as a marine clean fuel.
Under their agreement, both sides will explore possible market opportunities on certain clean (green and blue) ammonia fuel infrastructure.
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.
Another exciting #CleanAmmonia initiative. Demand and supply of clean ammonia need to be developed in tandem, and Yara and @Trafigura intend to collaborate to enable the #hydrogen economy and make the transition to a greener economy a reality. https://t.co/XQyZ1Pglrp pic.twitter.com/zbNMLFAJPj
— Yara International (@yara) June 7, 2021
As explained, Yara and Trafigura have taken a number of steps to progress towards making the transition to a greener economy a reality. For the first time the two companies intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain.
Under the MoU, the two companies 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,”… Magnus Krogh Ankarstrand, President of Yara Clean Ammonia concluded.
