Commodity trader Trafigura and ammonia specialist Yara have signed a Memorandum of Understanding to work together on the development of ammonia as a bunker fuel as well as the creation of a green and blue ammonia fuel infrastructure.
The scope of the MoU covers the supply of clean ammonia by Yara to Trafigura Group companies; exploration of joint R&D initiatives for the use of ammonia as a bunker fuel and the development of clean ammonia assets, including marine fuel infrastructure and market opportunities.
As previously reported, in April Trafigura announced it had joined MAN Energy Solutions’ (MAN ES) project to develop an ammonia-fuelled two-stroke engine and it pledged ‘to sponsor and invest in other, promising decarbonisation fuels and technologies’.
The MAN ES engine is expected to be commercially ready for deep sea shipping by 2024, with a retrofit option available by 2025.
Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, commented on the new collaboration with Trafigura: '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. 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.’
‘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.
Trafigura is also the majority stakeholder the marine fuel supplier TFG Marine, with Frontline and Golden Ocean as the other joint venture partners.