Ammonia

LONDON (ICIS)–Fertiglobe has agreed to acquire Wengfu Australia’s distribution assets as part of a strategic expansion strategy, the urea and ammonia producer said on Monday. The acquisition will expand the Abu Dhabi-headquartered firm’s downstream reach and enhance access to Australian customers. It currently supplies around 600,000 tonnes/year of urea to the country. The purchase price of Wengfu will be based on net asset value plus a premium of around $8 million, with the final amount to be determined at closing. “Acquiring Wengfu’s assets marks a strategic step in our value-driven growth strategy and accelerates our commercial footprint in Australia, one of the world’s fastest-growing agricultural regions,” said Fertiglobe CEO Ahmed El-Hoshy. Fertiglobe said the transaction was expected to be 2.8% and 4.1% earnings per share (EPS) accretive before synergies in 2026 and 2027 respectively. Closing of the deal is subject to customary regulatory and legal approvals, it added in a statement.

12-May-2025

HOUSTON (ICIS)–CF Industries said in its latest nitrogen fertilizer market outlook that in the near-term it expects the global supply-demand balance to remain constructive. The producer highlighted in its earnings release that global pricing was supported in Q1 of 2025 by positive global demand, constrained availability due in part to natural gas shortages in Iran, and China’s continued restrictions on urea exports. CF said there is anticipated strong demand from not only global corn stocks-to-use ratio reaching its lowest level since 2013, but because there is below average global inventories and challenging production economics in Europe. Looking at North America, CF said there should be strong nitrogen demand during the spring application season due to favorable returns for corn compared to soybeans, which is driving higher planted corn acres in 2025. The producer noted that the US Department of Agriculture (USDA) reported in March that growers intend to plant 95.3 million acres of corn this season. For Brazil, the company expects the country will remain the largest urea import region, with imports projected to exceed 8 million tonnes, with this outlook supported by strong planted corn acreage and continued nominal domestic nitrogen production. In India, there is less urea inventory with CF saying that lower-than-targeted domestic production and higher year on year urea sales pushed urea inventory levels down by approximately 35% compared to March 2024. As a result, their management expects higher urea import requirements for the rest of this year to meet grower demand and replenish urea stocks. Across Europe the producer is projecting that ammonia operating rates and overall domestic nitrogen product output will remain below historical averages over the long-term given the region’s status as the global marginal producer. For China, CF said the ongoing urea export controls continue to limit availability from the country with minimal volumes concluded in Q1 of 2025. The company feels that urea exports will not resume until the conclusion of China’s domestic spring application season at the earliest. In Russia, urea exports are expected to increase 3% in 2025 due to the start-up of new urea granulation capacity and the willingness of certain countries to purchase Russian fertilizer, including the US and Brazil. CF also is expecting that over the medium-term the significant energy cost differentials between North American producers and high-cost producers in Europe and Asia are expected to persist. As a result, the global nitrogen cost structure would then remain supportive of strong margin opportunities for low-cost North American producers. In the longer-term view CF is projecting that the global nitrogen supply demand balance will further tighten as global capacity growth over the next four years is forecasted to not keep pace with the expected rise in global demand. Those needs are anticipated to have a growth rate of approximately 1.5% per year for traditional applications and see more new demand emerging for clean energy applications. CF has a view that global production will remain constrained by poor margins for European ammonia producers and availability of natural gas in Egypt, Iran and Trinidad.

08-May-2025

SINGAPORE (ICIS)–US-based ExxonMobil Corp has signed a long-term agreement to sell around 250,000 tonnes/year of low-carbon ammonia to Japan’s Marubeni Corp, the companies said. The fuel will primarily be supplied to Kobe Power Plant – a fully owned subsidiary of Kobe Steel Ltd – in Hyogo prefecture, located in the west of Japan, the US oil and gas major said in a statement on 7 May. Marubeni has also agreed to acquire a stake in ExxonMobil’s upcoming low-carbon hydrogen and ammonia facility, located in Baytown, Texas, the Japan-based trading firm said. A final investment decision on the Baytown plant is expected in 2025, and once running, it can produce up to 1 billion cubic feet (bcf) of low-carbon hydrogen daily, ExxonMobil said. “By using American-produced natural gas we can boost global energy supply, support Japan’s decarbonization goals and create jobs at home,” said Barry Engle, president of ExxonMobil Low Carbon Solutions. “Marubeni will take this first step together with ExxonMobil in the aim of establishing a global low-carbon ammonia supply chain for Japan through the supply of low-carbon ammonia to the Kobe Power Plant,” said Yoshiaki Yokota, a senior managing executive at Marubeni. “Additionally, we aim to collaborate beyond this supply chain and strive towards the launch of a global market for low-carbon ammonia,” Yokota said. Financial details of the transactions were not announced. Kobe Power Plant aims to co-fire low-carbon ammonia with existing fuel by Japan’s fiscal year 2030, supporting the reduction in CO2 emissions.

08-May-2025

LONDON (ICIS)–Europe melamine editor Melissa Hurley interviews senior editor Sylvia Traganida, deputy managing editor Deepika Thapliyal, and market reporters Joy Foo and Connor Phillips. Market factors to consider ahead of May: Asia melamine market grappling with weak demand and increasing supply Asia exports dropped in March but expected to flow into Europe in May/June Reduced melamine supply in Europe offset by ongoing sluggish demand conditions No tariff impact on US melamine so far Global urea demand expected to slow from H2 May China not resuming urea exports yet despite the domestic season ending Subdued European ammonia demand; waiting for nitrates market to pick up Natural gas TTF prices soften, but European fertilizer producers reluctant to ramp up production due low demand To listen in a separate window, click here. Additional reporting from Sylvia Traganida, deputy managing editor Deepika Thapliyal, market reporters Joy Foo and Connor Phillips.

29-Apr-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 25 April. China PC import prices near five-year low on poor demand By Li Peng Seng 21-Apr-25 12:41 SINGAPORE (ICIS)–Import prices of polycarbonates (PC) in China sank to their lowest in nearly five years recently and the bleakness will linger as demand will stay slow due to trade wars and ample supplies. US LPG supply diverted from China triggers sharp propane price fall in Japan, South Korea By Jiayi Chang 21-Apr-25 19:50 SINGAPORE (ICIS)–The US-China tariff dispute has severely disrupted established global energy trade flows. The abrupt suspension of US liquid petroleum gas (LPG) exports to China, a key trade route, has led to a sharp collapse in propane prices across Japan and South Korea. INSIGHT: China PP capacity expansion to peak in 2025; trade war to hit supply By Lucy Shuai 22-Apr-25 11:28 SINGAPORE (ICIS)–Global and Chinese polypropylene (PP) capacity additions will peak in 2025 and then slow down, with the US-China trade war expected to affect overall supply. S Korea's Apr export decline point to rising challenges from US tariffs By Nurluqman Suratman 22-Apr-25 12:05 SINGAPORE (ICIS)–South Korea's exports fell by 5.2% year on year in the first 20 days of April, an indication of the significant impact of US tariffs on Asia's fourth-largest economy. US tariffs enlarge woes in Asia chemical freight market By Hwee Hwee Tan 23-Apr-25 15:49 SINGAPORE (ICIS)–Vast uncertainty stemming from the US’ tariff moves has squashed hopes of any near-term recovery for Asia chemical tanker market. Cost push, tight supply buoy up few Asia petrochemicals amid general slump By Jonathan Yee 23-Apr-25 16:24 SINGAPORE (ICIS)–While the US-led trade war has roiled Asia’s petrochemicals market, sending prices of some on free fall, a selected few products have bucked the trend due to rising feedstock cost and tightening supply, but the support may be temporary amid global economic headwinds. PODCAST: Asia propylene market seeks balance in tariff chaos By Seymour Chenxia 23-Apr-25 16:56 SINGAPORE (ICIS)–Asia's propylene (C3) market is likely to see tighter short-term supply as China's propane dehydrogenation (PDH) producers now face surging propane import costs because of US-China tariff hikes. Downstream demand and end-user consumption could be negatively impacted by tariff barriers. INSIGHT: Sluggish demand weighs on Asia C3 despite propane hikes By Julia Tan 23-Apr-25 22:13 SINGAPORE (ICIS)–Tighter supply from end-May onwards is likely to support near-term Asia propylene (C3) pricing on expectations that tariffs levied on US-origin propane will make it untenable for Chinese PDH units to sustain existing operating rates. Saudi Arabia, India plan to jointly build two oil refineries By Priya Jestin 24-Apr-25 17:05 MUMBAI (ICIS)–Two oil refineries will be built in India as part of Saudi Arabia’s $100-billion investment pledged to the south Asian nation which would cover cooperation in multiple areas, including energy and petrochemicals. Asia ACN sentiment turns bearish on weak China market By Corey Chew 25-Apr-25 12:24 SINGAPORE (ICIS)–China’s domestic acrylonitrile (ACN) market has weakened as Shandong Yulong’s new capacity resulted in an oversupply amid weak demand. INSIGHT: Trade tensions to hasten Canadian low carbon ammonia exports to Asia, hitting prospects of US projects By Bee Lin Chow 25-Apr-25 15:38 SINGAPORE (ICIS)–Canadian ammonia exports are exempted from the prohibitively high levy imposed on Canadian exports to the US, thanks to the US-Mexico-Canada trade agreement.

28-Apr-2025

SINGAPORE (ICIS)–Canadian ammonia exports are exempted from the prohibitively high levy imposed on Canadian exports to the US, thanks to the US-Mexico-Canada trade agreement. However, the trade tensions would inevitably motivate Canada to be less reliant on its closest neighbour market and accelerate diversification of its ammonia exports to Asia from the Prince Rupert Port in western Canada. Stronger push for Canada to diversify ammonia exports despite US tariff exemption Prince Rupert Port – an emerging low carbon ammonia export and bunkering hub US Gulf Coast low carbon ammonia projects to face strong competition Prince Rupert Port has the shortest shipping distances between North America and Asia hence its direct shipping route to Asia stands to undermine the competitiveness of low carbon ammonia exports from the US Gulf Coast. Besides comparatively longer shipping distances, shipments from the US Gulf Coast to Asia have also been faced with seasonal congestions at the Panama Canal. Key industry stakeholders in Japan and South Korea have been in talks with US companies to jointly produce low carbon ammonia in the US Gulf Coast States of Texas and Louisiana for export to Asia. Among the announced US projects, the joint venture between Japan’s largest energy company JERA Company (JERA), global investment and trading company Mitsui & Company and US fertilizer producer CF Industries have progressed to Final Investment Decision. The first ammonia exports from Prince Rupert Port to Asia are likely to be low carbon trades spearheaded by two of Japan’s largest trading houses Itochu and Marubeni. Low carbon ammonia exports from Prince Rupert Port would position Canada as a key stakeholder in an emerging low carbon commodity ecosystem comprising major bunkering hubs such as Amsterdam, Algeciras, Singapore and Port Zayed, key exporters including the UAE, Saudi Arabia, Qatar, Oman, Egypt, India, Malaysia, Thailand, Indonesia, Australia and the US, and importers including countries in Europe, Japan and South Korea (please see map below). Note: Includes proposed and ongoing investments Low carbon ammonia supplies via the Prince Rupert Port will also facilitate development of a low carbon marine fuel bunkering service that could potentially be in direct competition with the proposed low carbon bunkering services at the US ports of Los Angeles and Long Beach. Demand for low carbon ammonia bunker fuels on the US west coast is expected to be driven by car-carrying vessels calling at Port Bernicia and container vessels at Port Oakland. The Canadian government has been inviting foreign investments to develop a new liquid chemicals export route from the Prince Rupert Port as the port has been seeing declining trades volumes in recent years due to shifting global trade flows and competition with other North American ports. AltaGas and Royal Vopak are jointly building an export facility on the Ridley Island, British Columbia, that includes a large-scale liquefied petroleum gas (LPG) and bulk liquids terminal with rail, logistics and marine infrastructure. As vessels can be configured to alternate between LPG and ammonia cargoes, ammonia can be one of the outbound trades to benefit from the export facility at Ridley Island. While diversifying overseas markets to pre-empt risks, including tariff or non-tariff trade barriers, would make sense for any exporters, it is particularly crucial for ammonia producers as stringent safety standards for the transportation and handling of ammonia means alternative export channels are not easily set up. Canada exported about 1.08 million tonnes of ammonia to the US last year, around 19% of its total annual ammonia capacity of about 5.62m tonnes, and almost all Canadian ammonia exports have been for the US market at least since 2020, according to the ICIS Supply and Demand database. With contributions from Kieran Cosgrove, Song Hea Beom and Sylvia Traganida INSIGHT article by Chow Bee Lin

25-Apr-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 28 March. Japan Mar manufacturing activity deteriorates as output, new orders fall By Nurluqman Suratman 24-Mar-25 12:28 SINGAPORE (ICIS)–Japan's manufacturing purchasing managers' index (PMI) fell to 48.3 in March, marking its lowest point since February 2024 amid a sharp drop in output and new orders, preliminary estimates from au Jibun Bank showed on Monday. INSIGHT: Chandra Asri prioritizes Indonesia chlor-alkali-EDC project By Pearl Bantillo 24-Mar-25 19:42 SINGAPORE (ICIS)–Indonesian producer Chandra Asri Petrochemical is proceeding with its flagship chlor-alkali (CA) ethyl dichloride (EDC) project, taking a bottom-up approach in its planned second petrochemical complex amid a challenging global landscape. Asia MEK faces demand slowdown, mounting cost pressure entering Q2 By Joy Foo 25-Mar-25 13:19 SINGAPORE (ICIS)–Asia’s methyl ethyl ketone (MEK) prices have declined in March due to weakened demand, but Chinese makers’ cost pressure and low inventories may limit further market downside in the near term. INSIGHT: China's solar policy deadlines fuel volatility of EVA market By Joanne Wang 26-Mar-25 12:00 SINGAPORE (ICIS)–The recurring “rush-to-install” phenomenon in China’s photovoltaic (PV) industry- marked by deadlines like April 30 and May 31 – has profound ripple effects on China’s EVA (Ethylene Vinyl Acetate) market, a critical material for PV encapsulation films. INSIGHT: Can Q2 heavy turnarounds pull Asia MEG market out of its malaise? By Judith Wang 26-Mar-25 13:00 SINGAPORE (ICIS)–Asia's monoethylene glycol (MEG) prices had plunged to a six-month low by late March driven by slower-than-expected demand recovery and ample domestic supply in China. Emission regulations, lower cost needed for alternative marine fuels support – IEA By Jonathan Yee 26-Mar-25 17:41 SINGAPORE (ICIS)–Accelerating the transition to cleaner energy in the maritime sector will require emission regulations and financial incentives surrounding alternative fuels such as methanol and ammonia, according to the International Energy Agency (IEA)’s Regional Cooperation Centre. China presses on with PP exports as supply pressure intensifies By Jackie Wong 27-Mar-25 12:18 SINGAPORE (ICIS)–With self-sufficiency on the rise and even more production capacities coming onstream through 2027, China is pressing on with its polypropylene (PP) exports, even as weak economic conditions and slow end-product demand persist. Asia automakers’ shares slump on US’ 25% tariffs on car imports By Jonathan Yee 27-Mar-25 12:14 SINGAPORE (ICIS)–Shares of automotive companies in Asia slumped on Thursday after US President Donald Trump signed an executive order imposing 25% tariffs on all foreign-made cars from 2 April. Asia imports more US ethane feedstock on diversification, trade diplomacy By Jonathan Yee 27-Mar-25 15:30 SINGAPORE (ICIS)–Asian petrochemical firms are expected to import more US ethane feedstock in the coming years as energy diversification efforts grow in the region, alongside southeast Asian leaders looking to improve trade relations with the US amid President Donald Trump’s tariff threats on countries with trade surpluses. S Korea carmakers call for government measures to mitigate US tariff impact By Nurluqman Suratman 28-Mar-25 12:44 SINGAPORE (ICIS)–South Korea’s automotive industry leaders on Friday called on the government to implement measures to soften the expected impact of US tariffs, which will take effect in early April. INSIGHT: Asia adipic acid waits on verdict from Europe ADD investigations By Josh Quah 28-Mar-25 13:00 SINGAPORE (ICIS)–An ongoing anti-dumping duty investigation from the European Commission on adipic acid imports from China have rocked Asia adipic markets in recent weeks.

31-Mar-2025

SINGAPORE (ICIS)–Arab Gulf (AG) ammonia annual average export price is forecast to ease further this year (see Chart 1) as producers are expected to keep prices competitive to maintain market shares in Asia, particularly as weak Asian demand for industrial applications including acrylonitrile (ACN) and caprolactam (capro) have capped ammonia prices. AG ammonia producers are expected to maintain its export prices in 2025 at just below parity with southeast Asian producer with FOB AG at around 97% of FOB SE Asia prices (see Chart 2) to optimize returns while keeping market shares in their key India and Taiwan markets. AG ammonia producers’ netbacks in Taiwan and India in 2025 are projected to return to levels similar to 2020 before the Russian-Ukraine war with AG FOB at around 89% and 84% of CFR Taiwan and CFR India prices, respectively (see Chart 3) Asia remains an important market for AG producers particularly when their returns from Europe have been shrinking. AG ammonia producers’ FOB netbacks from Europe is expected to remain constrained in 2025 with the FOB AG annual price hovering at around 63% of the CFR NWE annual price, following two years of higher returns in 2022 and 2023. (see Chart 4) AG ammonia producers have not been exporting much to Europe except for 2022 and 2023 when outbreak of the Russia-Ukraine conflict and subsequent sanctions on Russian exports created a window of opportunity for AG producers. (See Chart 5) Europe ammonia import prices are expected to remain elevated as high natural gas prices had led several ammonia plants in the region to be permanently shut in 2022, with the ammonia prices remaining tied to the prices of key exporters Trinidad and Algeria. Egypt also exports ammonia to Europe, but its production has been susceptible to disruptions caused by natural gas shortages as seen in Q3 last year and February this year. Europe import prices are expected to ease if Russia resumes exports to Europe hence a burning question for importers is when Togliattiazot’s (TOAZ's) export terminal at Russia’s Taman Port would start loading ammonia. TOAZ is part of the Uralchem Group, and the terminal was expected to start loading ammonia in Q1 this year. Ammonia is a feedstock for inorganic fertilizers such as urea and ammonium sulphates and chemicals such as acrylonitrile (ACN). With contributions from Song Hea Beom, Sylvia Traganida

28-Mar-2025

SINGAPORE (ICIS)–A significant number of solar and wind renewable power projects being planned or under development in China integrated with downstream production of “green” ammonia points to potentially heightened dynamics between renewable power and low-carbon ammonia within China, and by extension, in Europe. Some of China’s key green ammonia producers are eyeing the European market. China develops ammonia capacity to store renewable power Around 7 million tonnes of green ammonia projects to start up in China by 2030 – ICIS Chinese low carbon ammonia export to extend cross-sector impact to Europe “Green” ammonia refers to ammonia produced from solar or wind renewable power. China’s current five-year economic development plan which started in 2021 (14th five-year plan) encourages investments in diversified energy storage technologies, including megawatt-capacity fuel cells, metal–air electrochemical cells and hydrogen-ammonia energy storage. Energy storage solutions can counter impact of the inherently intermittent nature of solar and wind power. More than 9 million tonnes/year of green ammonia projects have been announced in China since 2020, of which around 7 million tonnes are expected to start up by 2030, ICIS data show. Majority of the investors in these green ammonia projects are state-owned companies from the Chinese power sector, with the rest from adjacent industries including steel, shipping, coal, electrolyzers and wind turbines manufacturing, as well as heavy industry machinery. CROSS-SECTOR PRICING DYNAMICSImplications of the potential cross-sector pricing dynamics were not lost on the Chinese economic and energy regulators. China’s top economic regulator, the National Development and Reform Commission (NDRC), and its Energy Bureau announced a new pricing mechanism for solar and wind renewable power on 9 February this year. Part of the new mechanism called for provincial regulators to set floor prices for domestic spot power markets in consideration of the potential returns that these renewable power providers can obtain outside the power market. With the slew of renewable power integrated with ammonia-as-energy-storage projects in the pipeline, green ammonia could potentially be one of those non-power-sectors that generate returns for the renewable power producers. Under the new mechanism, solar and wind power scheduled to start up after 1 June 2025 will be subject to feed-in tariffs (FITs) determined by voluntary industry bidding processes rather than FITs pegged to domestic coal power prices, a development widely seen as a step toward market-oriented power pricing. Renewable power providers selected in the bidding processes will obtain payouts from state-run grid operators if the power prices they obtain from the domestic spot market are below the FITs, and vice versa. The levels of FIT bids from renewable power providers inevitably would be influenced by their potential non-power-sector returns, hence aligning the floor prices of spot power markets to those returns could serve to prevent unnecessarily large amount of fund transfers between grid operators and renewable power operators. China’s power spot markets also feature price ceilings set by provincial regulators and the central government has called for these to be set considering the peak load price levels that industrial and commercial end-users pay. GREEN AMMONIA’S VARIED APPLICATIONS In February, the central government also called for ending inappropriate interventions in domestic electricity markets, such as setting energy storage as a pre-requisite for approving renewable power projects or their grid connections, and to diversify energy storage to include other technologies including sodium-ion, flow, lithium and lead-carbon batteries. Investor enthusiasm in green ammonia as an energy storage medium may ease as a result, but as a longer-term investment, ammonia remains promising due to its varied applications. Ammonia is a primary feedstock for inorganic fertilizers and chemicals production, and potentially a medium for shipping hydrogen to overseas markets. Last October, the Shuimu Mintal Damao project of Chinese state-owned company Mintal became the first in China to receive a TUV Rheinland pre-certification for green/renewable hydrogen and its derivative green/renewable ammonia, in compliance with the TUV Rheinland H2.21 v2.1 standard, based on the EU Renewable Energy Directive III (RED III). This certification, which demonstrates that the project design complies with the EU Renewable Energy Directive for renewable fuels of non-biological origin (RFNBO), may pave the way for a steady flow of green/renewable ammonia exports from China to Europe. Insight article by Chow Bee Lin With contributions from Song Hea Beom

24-Mar-2025

SINGAPORE (ICIS)–Dutch storage and infrastructure firm Vopak is doubling down on its energy transition strategy, re-affirming its commitment to invest €1 billion in low-carbon infrastructure through to 2030, the company’s Asia and Middle East chief told ICIS. Many energy transition projects in infancy; expected completion closer to 2030 India to be big exporter of green ammonia to South Korea, Japan, northwest Europe Vopak to continue pursuing joint ventures to develop value chains Initiatives include green ammonia as a hydrogen carrier, expanding value chains, and repurposing existing infrastructure to support sustainable feedstocks, according to Vopak president of Asia and Middle East Chris Robblee. ACCELERATING ENERGY TRANSITION Vopak is focusing on several key areas to support the global shift toward sustainable energy. Recently, the company completed its first bio-bunker fuel supply operation in Fujairah in the UAE, the fruits of its infrastructure development for biofuels and sustainable aviation fuel (SAF). "For us, new energy is about ensuring we have assets ready for sustainable feedstocks and future products like biofuels and SAF," Robblee said. Furthermore, Vopak views ammonia as the most efficient hydrogen transport solution and is actively investing in related projects. Ammonia is liquid that is a carrier for hydrogen (which is gas), and is easier to store and transport than hydrogen. "Hydrogen can move in different ways, but ammonia is the most efficient in our view," said Robblee. The company is also leveraging its experience in handling hazardous products to expand its carbon capture and storage (CCS) initiatives, seeing it as a crucial decarbonization pathway. Recognizing the shift from molecules to electrons, Vopak is entering the battery storage sector to support the changing energy landscape. INVESTMENT PROGRESS While Vopak has committed $1 billion to energy transition projects by 2030, only a fraction has been spent so far, as many projects are still in early development stages. The company has spent a little less than $100 million on projects since it made the pledge in 2022, Vopak CEO Dick Richelle was quoted by newswire agency Reuters in November 2024. Robblee emphasized the development of energy transition projects will be completed closer to 2030, with the pace of implementation much slower compared with its industrial and gas terminal projects. Vopak has a capex target of €2 billion for industrial and gas terminals by 2030. “The thought always was, it's going to come closer to the 2030 date than our growth spending on industrial and gas terminals. And it's just because a lot of the projects were in their infancy. “The big infrastructure projects that we work on take years to develop and then years to get going.” Ongoing projects include working through Vopak’s Tokyo office to import ammonia for co-firing with coal for power generation. Japan and South Korea are becoming leading importers of green ammonia as they work to decarbonize newer coal facilities or thermal power plants, Robblee said. “They have the proven technology that you're able to co-combust ammonia with … coal,” he added. “There are a lot of exciting projects in India and the Middle East that we see that flow coming to the East [northeast Asia], as well as the US.” India is a particular focus for storage and export of green hydrogen and ammonia. In November 2023, India’s Odisha state approved several green hydrogen and ammonia projects, including an ammonia storage tank project at Gopalpur operated by Aegis Vopak (AVTL), Vopak’s joint venture with India’s Aegis. This facility is designed to store 80,000 tonnes of liquid ammonia. AVTL, in November 2024, announced it has filed for an initial public offering (IPO) worth Indian rupees (Rs) 35 billion ($405 million) with the Securities and Exchange Board of India. A final decision for the IPO is expected in the first half of 2025. Vopak is also repurposing existing infrastructure in Asia to support sustainable feedstocks. In 2024, the company repurposed part of its Sebarok terminal in Singapore, commissioning 40,000 tonnes of capacity for blending biofuels into marine fuels. The Sebarok terminal is earmarked as a sustainable multi-fuels hub, reinforcing Singapore's status as a leading bunkering center. VALUE CHAINS STILL IN INFANCY A major challenge for Vopak in new energy markets is that value chains are still new. “I think what you'll see, which is quite normal, is a lot of these value chains aren't built yet,” he said. However, Robblee said the company is confident it can safely handle the products of the future. “We have the capabilities to contribute, to ensure that we give our people our best knowledge to build the assets in a safe and secure manner, in an efficient and [sustainable] manner.” Vopak also aims to continue working with different partners to develop its energy transition projects. "We are very accustomed to joint ventures. Across Asia and the Middle East, almost all our business is structured this way." For example, Vopak and France’s Air Liquide, in March 2024, signed a Memorandum of Understanding (MoU) to explore the development and operation of infrastructure for ammonia import, cracking, and hydrogen distribution in Singapore. “I think the only difference is, and we're quite open to it. Maybe the partners that we had in the past aren't the same partners that we [will have] in the future. And so, we're looking at that today,” Robblee added. Interview article by Jonathan Yee ($1 = Rs86.34)

20-Mar-2025