Yara, Trafigura collaborating to develop ammonia as fuel for shipping

SINGAPORE (ICIS)–Norwegian fertilizer major Yara has signed an agreement with commodity trading firm Trafigura to develop and promote the use of ammonia as a clean fuel in shipping, the two firms said on Monday.

The two firms under the memorandum of understanding (MoU) agreement also plan to “explore possible opportunities to work together on certain clean (green and blue) ammonia fuel infrastructure and market opportunities”, they said in a statement.

Greenhouse gas emissions from the global maritime sector could rise by as much as 130% by 2050 compared with 2008 levels, the joint statement said.

“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.