Trafigura joins cross industry study into the adoption of green ammonia as an alternative marine fuel
Trafigura Group Pte Ltd (“Trafigura” or the “Group”), one of the world’s leading independent commodity trading companies, has joined a further 22 companies in a cross-industry study into the adoption of green ammonia as an alternative marine fuel.
The early adoption of zero emission alternative fuels such as green ammonia is an important pre-requisite to decarbonising the global shipping industry – a hard-to-abate industry that is vital to global trade, but contributes around three percent of global greenhouse gas emissions.
The Joint Study framework, led by ITOCHU, has attracted companies representing the bunkering, chemical, energy, power and utilities, mining, manufacturing, shipping and shipbuilding and terminal industries, as well as classification societies, who have a common interest in understanding the challenges of adopting green ammonia.
The founding signatories of the Joint Study framework are: ABS; Anglo American; ClassNK; DNV; Equinor; Fortescue Metals Group; Genco Shipping & Trading; ITOCHU ENEX; ITOCHU; JERA;
K Line; MAN Energy Solutions; Mitsui E&S Machinery; Nihon Shipyard; NS United; Pavilion Energy; TotalEnergies; Trafigura; UBE INDUSTRIES; Uniper SE, Uyeno Transtech; Vale and Vopak Terminal Singapore. Further companies and organisations have been invited to join the Joint Study.
“We are committed to the cross-industry collaboration that is urgently needed to bring forward the low- and zero-carbon fuels and technologies that will enable the maritime energy to decarbonise,” said Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura. “We welcome today’s announcement of a joint study of green ammonia as an alternative marine fuel, as well as the development of ammonia-fuelled ships and the worldwide supply chain of ammonia that is being led by ITOCHU. We plan to be an active participant in the study.”
“Ammonia is already a globally traded and transported commodity, but for it to be widely accepted as a marine fuel we need to help demystify the risks and safety measures needed so that they are understood by policymakers and the maritime industry,” said Rasmus Bach Nielsen, Global Head of Fuel Decarbonisation for Trafigura. “This initiative is much needed.”
Common issues that will be considered during the Joint Study include a safety assessment of green ammonia as a maritime fuel including during bunkering operations, the specifications of green ammonia and the production of ammonia with net zero CO2 emissions. The framework may also ask some ammonia producers, relevant international organizations, port authorities and regulators in potential bunkering countries to share their opinions, views, expertise and experience.
The purpose of the Joint Study is not limited to identifying common issues around the adoption of green ammonia as an alternative marine fuel, but also the key elements closely linked to this including the development of ammonia-fuelled ship and the development of the worldwide supply chain of ammonia by ITOCHU and the other cross-industry participants.
About Trafigura
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world and has recently established a power and renewables trading division.
The trading business is supported by industrial and financial assets, including a majority ownership of global zinc and lead producer Nyrstar which has mining, smelting and other operations located in Europe, Americas and Australia; a significant shareholding in global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; and Galena Asset Management.
With circa 850 shareholders, Trafigura is owned by its employees. Over 8,500 employees work in 48 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD147 billion in 2020. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade.
