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October 13, 2021updated 16 Nov 2021 9:26am

Trafigura to invest in ammonia production to cut marine GHG emissions

The commodity trader stated that CO₂ emissions from shipping in the year 2020, up to 30 September, were 8.88 million tonnes.

Swiss commodity trading company Trafigura has reportedly revealed plans to invest in large scale low-carbon ammonia production plants.

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Trafigura chief executive Jeremy Weir told Reuters that the aim of the initiative is to reduce emissions as well as provide an energy source to power vessels.

The use of vessels to transport commodities is the main contributor to marine greenhouse gas (GHG) emissions at the company.

In 2020, up to the end of September, Trafigura recorded 8.88 million tonnes of CO₂ emissions from shipping, accounting for 58% of the total.

Without providing any details on whether it will produce green and blue ammonia, Weir said that the project ‘will help decarbonise the shipping industry’.

Green ammonia is produced by utilising heat from renewable energy to combine hydrogen, made from water electrolysis, and nitrogen.

On the other hand, blue ammonia is generated from natural gas and nitrogen, which produces carbon dioxide as a by-product.

In an interview for LME Week in London, Weir told the news agency: “Our gross margins for moving commodities from A to B are around 3%. We can’t use ammonia if others aren’t, it doesn’t work from the competition aspect.”

Earlier this year, Trafigura co-sponsored the development of the MAN Energy Solutions ammonia-fuelled engine for maritime vessels.

The engine is anticipated to be available commercially for large ocean-going vessels by 2024.

Recently, Horisont Energi signed a memorandum of understanding to work in partnership with Koole Terminals on the development of an ammonia terminal and storage centre at the Port of Rotterdam.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
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