FILE PHOTO: Trafigura logo is pictured in the company entrance in Geneva, Switzerland, March 11, 2012. REUTERS/Denis Balibouse
June 8, 2021
OSLO (Reuters) – Global commodities trader Trafigura and Norway’s Yara said on Monday they had signed a memorandum of understanding (MoU) aiming to supply the marine industry with carbon emissions-free ammonia for fuel.
Under the plan, Yara is to supply Trafigura with clean ammonia, and the firms are to jointly conduct research as well as develop marine fuel infrastructure and market opportunities for both “green” and “blue” ammonia, the companies said.
Ammonia, a hydrogen-carrying chemical used as a fertiliser but also in other applications such as explosives, is one of several candidates to become the shipping industry’s preferred zero-carbon shipping fuel.
Ammonia is called green when produced from renewable electricity while the blue version is made with fossil fuel and a subsequent carbon capture and storage process (CCS).
“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, Trafigura executive director and co-head of oil trading.
(Reporting by Victoria Klesty; editing by Jason Neely)