Yara Clean Ammonia and Bunker Holding sign a memorandum of understanding to develop the market for ammonia as a marine fuel

The two companies signed a memorandum of understanding to explore opportunities to work together to advance plans to supply the shipping industry with ammonia as a fuel. The focus of the collaboration is to explore opportunities to supply clean ammonia as marine fuel to first movers in the shipping industry along important trade routes and bunker ports in different geographic regions.

Yara Clean Ammonia (YCA) and Bunker Holding Group signed a Memorandum of Understanding to work together to accelerate the development of the clean ammonia marine fuel market. This agreement connects two key elements of the supply chain required for the use of clean ammonia as marine fuel, namely a global supplier of clean ammonia and the current largest bunker supplier in terms of end users. This engagement will cover multiple global regions and will focus on supporting first mover initiatives in different regions.

Ammonia, a sustainable solution for sea transport

Clean ammonia is one of the most effective alternatives to decarbonize maritime transport. Shipping companies are expected to scale up their use of this sustainable fuel from 2026 to reduce life cycle CO2 emissions by up to 100%.

The development and use of sustainable fuels contributes to several of the Sustainable Development Goals of the 2030 Agenda: SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production) and SDG 13 (Climate Protection).

Murali Srinivasan, SVP Commercial of Yara Clean Ammonia said: “We look forward to working with Bunker Holding to accelerate the energy transition for the marine industry with clean ammonia to a carbon neutral energy.” Our global assets and logistical footprint in Coupled with Bunker Holdings’ position as the world’s largest bunker provider, it will provide security and reliability in the supply of clean ammonia for marine fuel and bring more resilience and robustness to the development of this value chain in the future.”

Valerie Ahrens, Bunker Holding’s Senior Director, New Fuels and Carbon Markets, said, “We are pleased to be working with Yara Clean Ammonia to develop a credible commercial proposition to supply our global customer base with low-carbon and zero-carbon ammonia.” Bunker Holding strive to play a leading role in facilitating the decarbonization of the maritime sector. Therefore, it is crucial for us to work with partners who can offer the market confidence in the scale and security of low-carbon fuel supply. ”

About Yara Clean Ammonia

Yara expands his knowledge to feed the world responsibly and protect the planet. Yara Clean Ammonia is uniquely positioned to enable the hydrogen economy in a market expected to grow significantly over the next few decades. Our goal is to significantly strengthen our leading global position as the world’s largest ammonia trader, unlock the green and blue value chains, and drive the development of clean ammonia worldwide.

Building on Yara’s leading experience in global ammonia production, logistics and trading, Yara Clean Ammonia works to capture growth opportunities in low-emission marine and energy fuels, zero-carbon food production and ammonia for industrial applications.

Yara Clean Ammonia, through Yara, operates the largest global ammonia network with 15 vessels and access to 18 ammonia terminals and multiple ammonia production and consumption sites around the world. Full year 2022 revenue and EBITDA were $4,422 million and $249 million, respectively. Yara Clean Ammonia is headquartered in Oslo, Norway.

Related Articles

Back to top button