Yara Clean Ammonia (YCA), a subsidiary of Norwegian fertiliser company Yara International, and marine fuels trader Bunker Holding Group have signed a memorandum of understanding (MoU) to collaborate on the development of the market for clean ammonia as a shipping fuel.
The MoU will see the two companies collaborate on exploring opportunities to supply clean ammonia as a marine fuel to First Movers in the shipping industry along key trade routes and bunkering ports in various geographical regions.
The agreement connects two key elements of the supply chain needed to achieve the use of clean ammonia as a shipping fuel, namely a global supplier of clean ammonia and the largest bunker supplier today in terms of end users, YCA stated.
The development and use of sustainable fuels such as ammonia are said to contribute to several of the 2030 Agenda’s Sustainable Development Goals: SDG 7 (Affordable and clean energy), SDG 8 (Decent work and economic growth), SDG 12 (Responsible consumption and production), and SDG 13 (Climate action).
Commenting on the MoU, Murali Srinivasan , SVP Commercial of Yara Clean Ammonia, said: “We look forward to collaborating with Bunker Holding to support the acceleration of the net-zero carbon energy transition for the shipping industry with clean ammonia. 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.”
Valerie Ahrens , Senior Director, New Fuels and Carbon Markets of Bunker Holding, added: “We are excited to work with Yara Clean Ammonia on developing a credible commercial offering for the supply of low- and zero-carbon ammonia to our 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.”