Norwegian fertilizer company Yara International ASA revealed it is taking further steps to enable the hydrogen economy by establishing a new global unit – Yara Clean Ammonia .
With this move, the company wants “to capture growth opportunities within carbon-free food solutions, shipping fuel and other clean ammonia applications”, as explained by Svein Tore Holsether, President and Chief Executive Officer of Yara.
Yara recently unveiled plans for 500,000 tonnes per annum green ammonia production in Norway, powering emission-free shipping fuels and decarbonized food solutions. The company said it will fully electrify its ammonia plant in Porsgrunn, with the potential to cut 800,000 tonnes of CO 2 per annum, equivalent to the emissions from 300,000 passenger cars.
Ammonia’s chemical properties make it ideally suited for the hydrogen economy. It does not require cooling to extreme temperatures, and has a higher energy density than liquid hydrogen, making it more efficient to transport and store. Ammonia is therefore the most promising hydrogen carrier and zero-carbon shipping fuel, Yara believes.
The creation of Clean Ammonia unit was announced in the company’s Q4 2020 results, showing that Yara’s net income increased to $246 million in the fourth quarter from $199 million reported in the corresponding period a year earlier.
“Yara delivers its tenth consecutive quarter with improved capital returns, with increased deliveries and production offsetting the impact of higher energy prices,” Holsether said.
Yara’s industry fundamentals are robust, as the twin challenges of resource efficiency and environmental footprint require significant transformations within both agriculture and the hydrogen economy. Yara’s food solutions and ammonia positions are well placed to both address and create business opportunities from these challenges, according to the company.