London, 23 March 2023

Global energy and commodity price reporting agency Argus has launched two Carbon-Adjusted Price of Ammonia (CAPA) assessments that reflect the future impact of the Carbon Border Adjustment Mechanism (CBAM) on European ammonia prices.

The CBAM has the potential to be the first instrument available to the rapidly developing clean ammonia market that will combine a carbon intensity measurement with a mandatory carbon price. Its goal is to provide market transparency and facilitate liquidity in the coming market. Clean ammonia is attracting widespread commodities market attention, both because it decarbonises ammonia’s traditional end-uses in fertilizers and chemicals, and due to its exciting potential in transport fuels and power generation.

The new assessments combine Argus’ daily price for ammonia delivered to northwest Europe with the price of CO2 emissions under the EU’s Emissions Trading System (ETS), and with two separate carbon intensity factors for European ammonia imports calculated by Argus. The carbon intensity factors reflect two scenarios, one modelling the initial state of the CBAM mechanism (i.e. with free ETS allowances, starting from 2026) and one that does the same for the end state of the mechanism (i.e. without free ETS allowances, which will be fully phased out by 2034).

The new prices will allow market participants to evaluate how carbon pricing will impact their business, incentivise their decarbonisation efforts, and support investment in new clean ammonia capacity.

Argus Media chairman and chief executive Adrian Binks said: “Argus is at the forefront of providing pricing and contractual instruments to the nascent clean ammonia industry, and this latest development is a testament to our commitment to this market.”

The CAPA assessments are published daily as part of the Argus Ammonia service and complement Argus’ existing suite of ammonia and hydrogen price and cost assessments.

About Argus Media

Argus is the leading independent provider of market intelligence to the global energy and commodity markets. We offer essential price assessments, news, analytics, consulting services, data science tools and industry conferences to illuminate complex and opaque commodity markets.

Headquartered in London with 1,300 staff, Argus is an independent media organisation with 29 offices in the world’s principal commodity trading hubs.

Companies, trading firms and governments in 160 countries around the world trust Argus data to make decisions, analyse situations, manage risk, facilitate trading and long-term planning. Argus prices are used as trusted benchmarks around the world for pricing transportation, commodities and energy.

Founded in 1970, Argus remains a privately held UK-registered company owned by employee shareholders and global growth equity firm General Atlantic.

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