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Yara partners with Statkraft and Aker Horizons for large-scale green ammonia project

Published by , Editorial Assistant
World Fertilizer,

Yara International has signed a Letter of Intent with Statkraft and Aker Horizons aiming to establish a large-scale green ammonia project in Norway, enable the hydrogen economy and accelerate the green energy transition. The partners will target green hydrogen and green ammonia opportunities within shipping, agriculture and industrial applications, by electrifying Yara’s existing ammonia facility in Porsgrunn.

“This is not just a unique decarbonisation project, but a strategic investment that can establish new value chains for green hydrogen and green ammonia. Yara is a world leader in ammonia, with long experience and leading position within global ammonia production, logistics and trade. With Statkraft and Aker Horizons onboard we gain key expertise within renewable electricity, power markets, industrial development and project execution, giving us a unique opportunity to realise the project,” said Svein Tore Holsether, President and CEO of Yara.

The partners plan to electrify and decarbonise Yara’s ammonia plant in Porsgrunn. Building on their combined expertise, the partners aim to fully remove CO2 emissions from ammonia production, thereby producing emission-free fuel for shipping, carbon-free fertilizer and ammonia for industrial applications.

The conversion of Yara’s existing ammonia plant has the potential to become one of the largest climate initiatives in Norway’s industrial history, targeting annual CO2 reductions equivalent to the emissions from more than 300 000 fossil fuel passenger cars. Provided that power is available at the site and the required public co-funding is in place, the project could be realised within 5 – 7 years.

“Aker has been a driving force for knowledge-based industrial development for 180 years. A partnership with Yara and Statkraft, two fellow Norwegian industrial pioneers, marks the beginning of a new industrial adventure in Norway. The first project in Porsgrunn can be a lighthouse project – providing competitive advantage in a growing global hydrogen economy and building on existing capabilities in the Norwegian supplier industry to create new jobs for the future,” said Øyvind Eriksen, President & CEO of Aker ASA and Chairman of Aker Horizons.

In addition to the Porsgrunn project, the three companies plan to explore the potential for green ammonia production in Northern Norway as a future opportunity.

Shipping currently accounts for 2% of global greenhouse gas (GHG) emissions, of which long-distance shipping represents 80%. Converting all long-distance shipping to ammonia would require approximately 500 – 600 million tpy of ammonia, 3 – 4 times the current world production. The Norwegian shipping industry has a stated ambition to reduce emissions from domestic shipping by 50% by 2030, which will require significant green hydrogen production.

Yara’s Porsgrunn plant is well set up for large-scale production and export, allowing Norway to quickly play a role in the hydrogen economy. Constructing a new ammonia plant and associated infrastructure is typically a capital-intensive process, but by utilising Yara’s existing ammonia plant and associated infrastructure in Porsgrunn, valued at US$450 million, the total capital requirement for the project is significantly reduced compared with alternative greenfield locations.

“It is currently more expensive to produce green hydrogen based on renewable electricity and electrolysis than through natural gas, but large-scale production will reduce cost of the electrolysis route. For hydrogen to be exported or used in long-haul shipping or fertilizer production, it needs to be converted to ammonia, and converting Yara’s existing ammonia plant is both faster and more cost-effective than building a new plant. However, realising this innovative project will require good incentive frameworks and support from the authorities,” said Holsether.

Ammonia’s chemical properties make it ideally suited for the hydrogen economy. It does not need to be refrigerated to the same temperatures as hydrogen, 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.

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