Ammonia
Overview
The ammonia market is undergoing a period of rapid and dramatic change. Conventional or ‘grey’ ammonia is traditionally produced almost exclusively for its nitrogen content. However, the urgent need to decarbonise the global economy and meet ambitious zero-carbon goals has opened up exciting new opportunities.
Ammonia has the potential to be the most cost-effective and practical ‘zero-carbon’ energy carrier in the form of hydrogen to the energy and fuels sectors. This has led to rapid growth of interest in clean ammonia and a flurry of new ‘green’ and ‘blue’ ammonia projects.
Argus has many decades of experience covering the ammonia market. We incorporate our multi-commodity market expertise in energy, marine fuels, the transition to net zero and hydrogen to provide existing market participants and new entrants with the full market narrative.
Our industry-leading price assessments, powerful data, vital analysis and robust outlooks will support you through:
- Ammonia price assessments (daily and weekly), some of which are basis for Argus ammonia futures contracts, Ammonia forward curve data and clean ammonia cost assessments and modelled weekly prices
- Short and medium to long-term forecasting, modelling and analysis of conventional and clean ammonia prices, supply, demand, trade and projects
- Bespoke consulting project support
Latest ammonia news
Browse the latest market moving news on the global ammonia industry.
Japan pushes abatement approach to energy transition
Japan pushes abatement approach to energy transition
Tokyo, 23 September (Argus) — Japan is keen to promote its energy transition approach, focused on carbon abatement technologies, to the wider coal-reliant Asia-Pacific region. The country has accelerated development of carbon abatement technologies to keep fossil fuels in its energy mix and boost energy security and economic growth. Japan, with its G7 counterparts, pledged to phase out "unabated" coal-fired plants by 2035, or "in a timeline consistent with keeping a limit of a 1.5°C temperature rise within reach, in line with countries' net zero pathways". This is a major step for Japan, a resource-poor country. But legislative progress aimed at developing value chains for carbon capture and storage (CCS) and cleaner fuels, such as hydrogen and ammonia, might have encouraged Tokyo to commit, especially since the G7 text allows for some wiggle room. To ensure continued use of its abated thermal power plants, trade and industry ministry has requested ¥11.2bn ($79mn) to support CCS projects, including exploration of CO2 storage sites, for 2025-26, up sharply from the ¥1.2bn budgeted for 2024-25. Japan has yet to set a date to achieve the phase-out target. But it had already promised not to build new unabated coal-fired plants at last year's UN Cop 28 climate talks, while pledging to phase out "inefficient" coal-fired plants by 2030. Less than 5pc of Japan's operational coal fleet has a planned retirement year, according to analysis by Global Energy Monitor, and these might comprise the oldest and least efficient plants. Coal capacity built in the last decade, following the Fukushima-Daiichi nuclear disaster, is unlikely to receive a retirement date without a countrywide policy that calls for a coal exit. Japan's coal demand could decline, to some extent, under global divestment pressure. But the fuel remains key, as the government sees renewables and nuclear as insufficient to meet rising power demand driven by the growth of data centres needed to enable artificial intelligence. Continental divide The country is keen to extend its vision for "various" and "practical" pathways, including abatement technologies, to coal-reliant southeast Asia. This stems from Tokyo's sceptical view about promoting a more European approach to the energy transition — driven by wind and solar power — to Asian countries. Japan stresses the importance of more diversified pathways, including thermal power with abatement. The country aims to spur decarbonisation in Asia-Pacific through a platform called the Asia Zero Emission Community (Azec) initiated in 2022. Asia-Pacific accounts for more than half of global greenhouse gas (GHG) emissions, at 17.178bn t of CO2 equivalent, according to the IEA. In Jakarta last month, 11 Azec countries emphasised the need to co-operate "to decarbonise coal power generation". The platform sets out options such as biogas, hydrogen and ammonia, and retrofitting with CCS and carbon capture, utilisation and storage. Japan's industries have already committed to carbon abatement at coal-fired plants in Asia, leveraging their technological know-how. Tokyo has pledged to provide about $70bn to support decarbonisation globally. This funding is part of wider financial assistance to help mobilise the estimated $28 trillion that Asia requires. To secure the funding, Japan has already issued part of a $139bn climate transition bond and aims to strengthen the financial support through the Asia Zero Emission Centre, the latest Azec initiative, under which transitional finance will be studied further, a trade and industry ministry official told Argus . Japan is on track to reduce its GHG emissions by 46pc by the April 2030-March 2031 fiscal year from its 2013-14 level, and hit its net zero emissions goal by 2050. By Motoko Hasegawa and Yusuke Maekawa Japan CO2 emissions by sector Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Consortium makes progress on US NH3 bunker vessel
Consortium makes progress on US NH3 bunker vessel
Tokyo, 20 September (Argus) — A group of companies continue to make progress on developing a ship-to-ship ammonia bunkering vessel for the US east coast, targeting to begin commercial operations by 2030. The consortium received in principle approval in August for their ammonia bunker vessel from US classification society the American Bureau of Shipping (ABS). The seven companies comprise Japanese trading house Sumitomo, ABS, Hong Kong-based shipping firm Fleet Management, American ship management company TOTE Services, Danish shipping firm AP Moller Maresk, Maresk's decarbonisation research institute Maersk Mc-Kinney Moller Center for Zero Carbon Shipping (MMMCZCS) and the US' Georgia Ports Authority. US marine engineering firm Vard Marine US also took part in barge design and engineering. The bunker vessel is designed to be capable of supplying fuel ammonia to Norwegian shipping company Hoegh Autoliners' car carriers, as well as an ammonia-fuelled container vessels developed by MMMCZCS. This will be the first ammonia bunkering vessel in the US, Sumitomo said. The partners expect to operate the ship on the east coast of the US such as Jacksonville port in Florida and Brunswick and Savannah ports in Georgia. These ports are increasingly receiving container ships and car carriers, with Sumitomo expecting demand for fuel ammonia for such vessels to grow in the future. Sumitomo is in charge of building a supply chain of green or blue ammonia for bunkering. It now plans to buy blue ammonia from the US Gulf of Mexico region, without specifying volumes. The company aims to enhance its carbon neutral marine fuel and ammonia bunkering businesses with the US project. It has also participated in an ammonia bunkering project in Singapore , aiming to commercialise it by the mid-2020s. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Methanex to acquire OCI’s methanol business for $2bn
Methanex to acquire OCI’s methanol business for $2bn
Houston, 9 September (Argus) — Methanol producer Methanex announced Sunday that it will acquire OCI's international methanol business for $2.05bn. As part of the transaction, Methanex will acquire four primary assets, including a 910,000 t/yr methanol facility and 340,000 t/yr ammonia facility in Beaumont, Texas. Methanex will acquire OCI's 50pc interest in the 1.7m t/yr Natgasoline methanol plant in Beaumont. The acquisition of Natgasoline is subject to a legal proceeding between OCI and Proman, the other 50pc holder in Natgasoline, over certain shareholder rights. If the dispute is not resolved within a certain period, Methanex has the option to exclude the purchase of the Natgasoline joint venture and proceed with the rest of the transaction. The transaction also includes OCI HyFuels, a producer of green methanol products such as biomethanol and bio-MTBE, and trading and distribution capabilities for renewable natural gas (RNG) and ethanol. Additionally, Methanex will acquire an idled 1m t/yr methanol facility in Delfzijl, Netherlands. The purchase price includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million and the assumption of about $450 million in debt and leases. The acquisition of fertilizer producer OCI began over a year ago, according to OCI officials. "We identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023," OCI executive chairman Nassef Sawiris said. This acquisition moves Methanex, primarily a methanol maker, into the ammonia sector. "From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing," Methanex CEO Rich Sumner said. The deal is expected to close in the first half of 2025. The transaction has been approved by the boards of directors of the two companies and is now awaiting certain regulatory approvals and other closing conditions. The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction. By Steven McGinn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
IMO 2040 CO2 goals unmet under base case: ABS
IMO 2040 CO2 goals unmet under base case: ABS
New York, 27 August (Argus) — The shipping industry will not meet the International Maritime Organization (IMO) goal for reducing CO2 emissions by 2040 without hastening the expected pace of vessel replacements, a study by vessel classification organization American Bureau of Shipping (ABS) concluded. IMO calls for the reduction of greenhouse gas emissions by at least 20pc by 2030, by at least 70pc by 2040, and to net zero by 2050, compared with 2008 base levels. Under a base case scenario, a 20pc reduction in CO2-equivalent emissions by 2030 is achievable on a full lifecycle basis, but a 70pc percent reduction by 2040 is not, ABS said. Under the best case scenario examined by ABS, achieving IMO's 70pc target would require a significantly faster renewal of the vessel fleet to replace oil-fueled vessels or a higher degree of vessel retrofitting. The three biggest categories of bunker consuming vessels — tankers, dry bulk carriers and container ships — are expected to follow a similar trajectory for marine fuel demand under the base case scenario, with conventional marine fuel accounting for more than 60pc of demand through 2035, ABS said. Conventional fuel demand would decline to 38-44pc of marine fuel demand in the first half of the 2040s in the base case, ABS predicted. Methanol in that period would grow to about 35pc of marine fuel demand for tankers and container ships and about 22pc for dry bulk carriers. Ammonia and hydrogen demand would grow to about 13pc of tankers' marine fuel demand, 18pc of dry bulk carriers' demand and about 14pc of container ships' demand. LNG across the three vessel categories is expected at 4-6pc of bunkering demand in the early 2040s, with biodiesel at 5-9pc of demand. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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Ammonia: Scaling up European market to 60mn t/y
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Insight papers - 01/02/24US Gulf primed to become key ammonia export region
Substantial growth in US Gulf ammonia exports is changing trade flows in the Americas, with additional export capacity due to come on line. This white paper explores these developments, their impact, and addresses whether new price mechanisms are needed to reflect this latest shift in market dynamics.
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