Yara to invest in blue ammonia capacity in U.S.
By
Aida Čučuk
26 June 2023
As part of its journey to decarbonize
agriculture and serve clean ammonia segments, Norwegian fertilizer
company Yara has announced it will boost its clean ammonia operations
by investing in blue ammonia capacity in the U.S.
Illustration; Courtesy of Yara
Yara noted its ambition is to be the leading
distributor across green, blue and grey ammonia, both for fertilizer
production and for Yara Clean Ammonia (YCA) customer segments such as
shipping and energy.
To note, Yara’s ambition is to become carbon neutral by 2050, and to
reach it, the company said it is working on a roadmap which includes
improving nitrogen use efficiency as a key decarbonization lever for
the fertilizer industry.
President & CEO of Yara International ASA Svein Tore Holsether
commented: “The Inflation Reduction Act makes the U.S. a highly
attractive location to produce decarbonized ammonia. Exporting this
decarbonized ammonia from the U.S. to the European market, matched
with the flexibility of Yara’s European production assets, enables
cost-effective decarbonization of fertilizer production. These are
highly attractive investments, and that’s before considering the
immeasurable cost of not achieving the climate goals.”
In regard to YCA, Yara confirmed the viability of a potential minority
divestment of YCA. However, it pointed out that timing will be
postponed as the YCA project portfolio attractiveness surpasses its
current market valuation, and major capital outlays are planned from
2025 onwards.
This year, YCA entered numerous ammonia projects, including a
collaboration on the development of the market for clean ammonia as a
shipping fuel with marine fuels trader Bunker Holding Group. In April,
it also joined forces with Germany-based gas company VNG, and in
March, it teamed up with Canadian pipeline and energy company Enbridge
for a blue ammonia project in the U.S.
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
www.exactrix.com
509 995 1879 cell, Pacific.
exactrix@exactrix.com
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