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SAFETY4SEA

Yara, Northern Lights ink agreement for cross-border CO2 storage

by The Editorial Team
November 20, 2023
in Green Shipping
Yara, Northern Lights ink agreement for cross-border CO2 storage

Credit: YARA

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Yara International and Northern Lights sign a binding commercial agreement, enabling the first cross-border transportation and storage of CO2. Yara aims to reduce its annual CO2-emissions by 800,000 tons from the ammonia production at Yara Sluiskil.

In particular, the CO2 will be liquefied and shipped by Northern Lights from the Netherlands to permanent storage on the Norwegian continental shelf, 2.6 kilometres under the seabed.

This commercial agreement gives us the opportunity to further utilise the capacity at our storage site below the North Sea. It confirms the commercial potential for CCS and demonstrates that the market for transport and storage of CO2 is evolving rapidly.

..says Børre Jacobsen, Managing Director of Northern Lights.

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Cutting 800,000 tons CO2 in Yara Sluiskil corresponds to 0.5% of the total annual emissions (2022) in the Netherlands. Over the next 15-years Yara will remove approximately 12 million tons of CO2 from its production in Sluiskil.

Since 1990 Yara Sluiskil has cut 3.4 million tons of CO2 equivalents per year from its ammonia and fertilizer production, whilst at the same time almost doubling its production. Now we continue by reducing one of the biggest emission points in the Netherlands.

..says Michael Schlaug, VP Yara Netherlands.

Clean ammonia can decarbonize hard-to-abate sectors like shipping, chemical production, and power production. It will enable the hydrogen economy, and the time to start using clean ammonia and hydrogen to decarbonize Europe is now.

..says Magnus Ankarstrand, President of Yara Clean Ammonia.

This project forms part of Yara’s ongoing strategic transition to decarbonize and future-proof its core production assets as Yara Sluiskil is one of the world’s largest ammonia and mineral fertilizer plants. In addition to this project, Yara is evaluating potential large-scale blue ammonia production projects with CCS in the US. Coupling these investments with its leading global ammonia position, Yara can profitably decarbonize its premium product operations in Europe while also diversifying its energy position. To allocate capital to this transition, Yara is considering a number of options including a minority divestment of YCA, asset divestments and other available funding sources.

CCS is a cost-efficient decarbonization solution that is compatible with existing European production infrastructure, especially in the case of ammonia and fertilizer production. We need to use all technologies at our disposal to address the climate emergency. European industries are eagerly awaiting the EU’s CCUS strategy, to be announced early next year. To realize the full potential of this decarbonization route, CCS projects need to be supported by a dedicated regulatory environment for CO2 transport and storage infrastructure.

Norway has the potential to provide Europe with significant CO2 storage, which will help the EU to reach their climate targets. It is a safe and efficient way to handle emissions and this agreement demonstrate that.

..says Børre Jacobsen, Managing Director of Northern Lights.

Yara, Northern Lights ink agreement for cross-border CO2 storageYara, Northern Lights ink agreement for cross-border CO2 storage
Yara, Northern Lights ink agreement for cross-border CO2 storageYara, Northern Lights ink agreement for cross-border CO2 storage
Tags: ammoniaCO2reducing shipping emissionsYara
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