Yara and Bunker Holding Team Up to Advance Clean Ammonia as a Shipping Fuel
A unit of Norwegian fertilizer producer Yara has signed a Memorandum of Understanding with Bunker Holding Group, leading bunker trading company, to advance the market for clean ammonia as a sustainable shipping fuel.
Under the MOU, Yara Clean Ammonia (YCA) and Bunker Holding will work together to accelerate plans to supply clean ammonia as a marine fuel to “First Movers” in the shipping industry. The initial focus will be on key trade routes and bunkering ports across the globe.
Clean ammonia is considered an effective alternative for decarbonizing maritime transport, with shipping companies expected to expand its use by 2026 to reduce CO2 emissions by up to 100% on a full life cycle basis.
“Our global assets and logistical footprint coupled with Bunker Holdings position as the world’s largest bunker player will bring safety, reliability, and security of clean ammonia supply as shipping fuel and will add more resilience and robustness to developing this value chain in the future,” said Murali Srinivasan, SVP Commercial of Yara Clean Ammonia.
Valerie Ahrens, Senior Director of New Fuels and Carbon Markets of Bunker Holding, said the two companies will work on developing a “credible commercial offering” for the supply of low- and zero-carbon ammonia to its global customer base.
“We at Bunker Holding are committed to playing a leading role in facilitating the decarbonization of the maritime sector and as such it is vital for us to collaborate with partners who can offer the market confidence around the scale and security of supply of low-carbon fuels,” Ahrens said.
Yara Clean Ammonia, based in Oslo, operates the largest global ammonia network with 15 ships and access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world, through Yara.
Yara produced around 7.7 million metric tons of ammonia in 2022, representing about 5% of the global ammonia production.
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