Trafigura Pte Ltd, a leading independent commodity trading company and Yara International ASA, a leading global ammonia player, have signed a Memorandum of Understanding to cooperate in developing and promoting the use of ammonia as a clean fuel for ships, and to explore opportunities to work together on green and blue ammonia fuel infrastructure, a press release reported.
According to the terms of the MoU, Yara will supply clean ammonia to Trafigura group companies, exploring joint research and development initiatives for using clean ammonia as a marine fuel and for developing new ammonia assets as marine fuel infrastructure and market opportunities.
“This agreement is another good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry.” Magnus Krogh Ankarstrand, President of Yara Clean Ammonia said.
“Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem.” added Ankarztrand
For his part, Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura 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.”