Trafigura, a commodity trading company, has recently signed an agreement with ammonia producer Yara International to work together on the development and promotion of ammonia as a marine fuel. Yara International produces about 8.5 million tons of ammonia a year.
Ammonia is widely available around the world and is a commonly traded chemical. About 80% of total ammonia produced is used as a fertiliser in the agricultural industry.
Whilst there have been previous discussions about the use of ammonia as marine fuel, the main barrier to it being used as fuel for shipping relates to the fact that ammonia is acutely toxic. In addition, it has low levels of conversion efficiency, and this will need to improve dramatically in order to be used as marine fuel.
But things are moving into the right direction for its development. Ammonia fueled vessels and ammonia marine fuel are both now under development by many companies. Joint initiatives across industries, like the recent agreement that Trafigura and Yara International have just signed up to, are promising because they will focus on the whole value chain related to supply and demand.
For more information about the use of ammonia as a marine fuel, please take a look one of our previous blogs - https://www.copemer.com/post/will-ammonia-bunker-be-the-future-for-marine-fuel
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