Site items in: Ammonia Markets

Green Maritime Corridors - A catalyst for transition to green shipping fuels

The ports of Los Angeles and Shanghai have announced the intention to create a green shipping corridor across the Pacific Ocean. The ambition is for ships trading between these ports to run on alternative low greenhouse gas emission fuels. Ammonia stands among the options as such an alternative.

There is a clear willingness from key players at the LA end of this trans-Pacific shipping corridor to embrace alternative fuel solutions and work together to unlock a suite of zero emissions technologies, albeit limited to an onshore focus for now. Shifting focus onto the water - where ammonia maritime fuel will undoubtedly play a critical role - is the logical next step.

Ammonia trade and embedded emissions pricing

Emissions (carbon) pricing has been theoretically and empirically proven to be the most efficient means of correcting the market failure caused by greenhouse emissions externalities. None-the-less, political constraints have prevented emissions pricing from forming a stable component of Australian climate and energy policy. For export-facing industries such as ammonia, however, emissions pricing in export markets is likely to matter more than Australian policy. In particular, the European Commission is set to propose a carbon-border adjustment mechanism in July 2021. The US is also considering ways of ensuring their industries are not disadvantaged as a result of its substantially ramped up…

Export market and project development pathways

Export opportunities in the green ammonia industry continue to grow.  Australia has a competitive advantage with existing infrastructure such as ports and an ever-growing renewable energy industry.  To capitalise, green ammonia project development pathways should be developed that allow for the efficient production of green hydrogen, and ultimately the export of green ammonia.

bp & ARENA confirm feasibility of large-scale green ammonia production in Western Australia

bp and ARENA's eighteen-month feasibility study into the Geraldton Export-Scale Renewable Investment (GERI) project wrapped up this week - with encouraging results. The two organisations conclude that "Western Australia is an ideal place to develop large scale renewable energy assets that can in turn produce green hydrogen and/or green ammonia for domestic and export markets".

Itochu to buy and produce blue ammonia

Itochu will purchase blue ammonia from Abu Dhabi, under a new agreement with OCI NV and ADNOC. Itochu will also team up with Petronas Canada (subsidiary of the Malaysian state energy company) will team up for a feasibility study into a 1 million tonne per year blue ammonia production plant in Alberta.