Trafigura, Yara sign MoU on ammonia for ships
Commodity trader Trafigura said June 7 it signed a preliminary agreement with ammonia company Yara International to study clean fuels for the shipping industry.
A memorandum of understanding (MoU) signed by the companies outlines ways to develop and promote the use of ammonia for shippers as well as other opportunities for infrastructure and marketing for the fuel source.
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“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,” said Magnus Krogh Ankarstrand, president of Yara Clean Ammonia. “Demand and supply of clean ammonia need to be developed in tandem.”
This is the second such agreement for Oslo-based Yara this month. Last week, the company signed an MoU with Japanese shipowner NYK Line, Nihon Shipyard and Nippon Kaiji Kyokai to jointly study the application of an ammonia-fuelled ammonia gas carrier (AFAGC).
This project is part of a joint R&D exercise for the practical application of the world's first AFAGC.
Another Japanese firm Jera recently signed an MoU with Yara to work together in developing supply chains for blue and green ammonia.
Tragifura and Yara said that, with emissions from the shipping industry expected to increase as much as 50% from 2008 levels by 2050, the industry needs to work quickly on transitioning to low- and zero-carbon maritime fuels such as ammonia.