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’s Mol starts operating LPG-fuelled VLGC
Japan’s Mol starts operating LPG-fuelled VLGC
Tokyo, 26 April (Argus) — Japanese shipping firm Mitsui OSK Line's (Mol) Singapore-based subsidiary Aramo Shipping started operating today a new LPG-fuelled LPG and ammonia carrier for domestic importer Gyxis. The 87,119m³ very large gas carrier (VLGC) Aquamarine Progress 2 was built by Japanese shipbuilder Namura Shipbuilding at Namura's Imari shipyard in south Japan's Saga prefecture. The vessel is equipped with a dual-fuel engine, which can burn LPG and conventional marine fuel. Mol expects use of LPG to reduce carbon dioxide (CO2) and nitrogen oxide emissions by 20pc and sulphur oxide and particulate matter emissions by 90pc compared with a heavy oil-dedicated vessel. The VLGC is also designed to be able to carry ammonia, eyeing potential demand growth for decarbonisation. Japanese shipping firms and shipbuilders have boosted construction of LPG carriers that can also ship ammonia, as demand for the cleaner fuel is expected to increase in future. Japan plans to co-fire ammonia at coal-fired power plants to reduce CO2 emissions, while aiming to use ammonia as a hydrogen carrier. Shipbuilders Kawasaki Heavy Industries and Mitsubishi Heavy Industries each delivered a VLGC, which can carry LPG and liquefied ammonia. Mol, in partnership with shipbuilders Tsuneishi Shipbuilding and Mitsui E&S Shipbuilding, completed risk assessments to design a mid-size ammonia-fuelled ammonia and LPG carrier , targeting to finish construction by 2026. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Lithuania more than triples 2030 renewable H2 target
Lithuania more than triples 2030 renewable H2 target
London, 24 April (Argus) — Lithuania has more than tripled its 2030 renewable hydrogen target and now aims to produce 129,000 t/yr from 1.3GW electrolyser capacity, according to the hydrogen roadmap approved by the government today. A previous draft from July last year set a goal of 350MW of electrolyser capacity and 34,000 t/yr production. According to the ministry, the main applications of renewable hydrogen will be fertiliser production, refining and mobility — including use of derivatives such as synthetic fuels. Lithuania can currently produce 264,000 t/yr of hydrogen from natural gas with unabated emissions. The bulk of this, roughly 200,000 t/yr, is used for ammonia production, with the remainder largely going to refineries, which consume over 50,000 t/yr. By 2030, Lithuania could consume around 96,000 t/yr of renewable hydrogen domestically, largely to replace existing grey hydrogen use. Some 82,000 t/yr of renewable hydrogen could be used in fertiliser production to meet EU requirements for 42pc of hydrogen consumption in industry to come from renewable sources by 2030 . While the government did not specify the reasons for the higher production targets, the need to comply with these EU rules — which were finalised in mid-2023 — may have contributed. Additional demand is expected from the transport sector. By 2030, the government aims to have at least 10 hydrogen refuelling stations, with at least one dedicated to the shipping sector. It also aims to have part of the public transport of at least five cities running on renewable hydrogen. The ministry plans to promote up to 10pc of hydrogen blending in the gas network as a way to kickstart the market and increase adoption. The strategy also anticipates use of hydrogen for power generation, primarily as a means of stabilising the grid and for electricity storage. Two hydrogen valleys could be developed — hubs for production and distribution of renewable hydrogen, according to the ministry. One is planned in the northwest of the country to leverage offshore wind potential and exports, while another is foreseen for the central region, which boasts "well-developed electricity transmission network" that could allow surplus power to go towards hydrogen production. Investments of around €4.4bn ($4.7bn) will be needed in the renewable hydrogen sector by 2030, the government said. This is expected to come partly from a mix of EU funding programmes and state investment, and partly from private funds. The government said it will look into implementing subsidies and grants schemes, tax incentives, loan guarantees and financing programmes, while it will also consider measures to streamline permitting. By Pamela Machado Lithuania renewable hydrogen demand targets (t/yr) 2030 2040 2050 Ammonia production 82,000 240,000 472,000 Refining (E-fuels production after 2030) 5,000 92,000 141,000 Transportation 8,000 32,000 51,000 Electricity production 0 0 17,000 Other domestic use 1,000 4,000 7,000 Exports 33,000 51,000 44,000 Total 129,000 419,000 732,000 - Lithuania energy ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US amsul stripping margin rises again in April
US amsul stripping margin rises again in April
Houston, 19 April (Argus) — The stripping margin for ammonium sulfate (amsul), driven by higher amsul prices, continued to rise in April even as variable costs grew. The stripping margin increased by nearly $24/st to $270/st for April, up by 10pc from March and up by 13pc from April 2023. Inland amsul trade exceeded $400/short tons (st) this month on continued supply tightness following production outages in the first quarter. Minimal length at New Orleans (Nola) spurred sellers to offer imported tons as high as $405/st fob for first half May delivery. Participants in the amsul market anticipate values to keep rising into May as supply tightness persists. Higher amsul prices have been partially caused by higher costs for inputs. The Tampa, Florida, ammonia contract rose by 7pc to $475/st in April from the month prior and the sulfur Tampa contract climbed by 17pc to $81 per long ton (lt) from the previous quarter. The cost of ammonia and sulfur were 8pc and 27pc lower than a year earlier, respectively. The total variable cost for amsul rose by $10/st in April to $143/st after holding steady in March. Rising ammonia prices have supported amsul variable costs but gains in the price of ammonia have not been as substantive as the market expected, sources said. Applications of ammonia in the US are slowing, which may weaken the price of the Tampa contract, but production outages could offset seasonal declines. Ma'aden's ammonia II plant is due to undergo a month of maintenance starting mid-April. Sulfur prices are expected to remain firm in the near term but lose momentum entering the third quarter on higher refinery utilization in the US and the return of Chinese exports of MAP and DAP, which could oversaturate the phosphate fertilizer market. Sulfuric acid is used to produce DAP and MAP. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EPS to register six ammonia-powered newbuilds with SRS
EPS to register six ammonia-powered newbuilds with SRS
London, 17 April (Argus) — Shipping firm Eastern Pacific Shipping (EPS) will register six dual-fuel ammonia powered vessels, due to be delivered from 2026, with the Singapore Registry of Ships (SRS). The commitment is part of an initial agreement with Singapore's Maritime and Port Authority (MPA), vessel classification organisation American Bureau of Shipping (ABS) and Lloyd's Register. EPS said the collaboration with the MPA will extend to supporting crew and seafarer training on the vessels powered by "zero and near-zero emission fuels", in addition to pilot trials of these fuels, and building on the capacity and infrastructure required for ammonia bunkering. Argus assessed the price of green ammonia dob east Asia on a very-low sulphur fuel oil energy density equivalent (VLSFOe) at $2,608.90/t in March, a premium of over $1,975.08/t against VLSFO dob Singapore. Grey ammonia in east Asia was assessed at an average of $829.52/t VLSFOe across March, a premium of $195.70/t to VLSFO dob Singapore. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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