10 Jul 2024 | 08:45 UTC — Insight Blog
Yara signs green ammonia offtake heads of terms from Egypt project
Featuring Staff and Eric Yep
Energy transition highlights: Our editors and analysts bring together everything you need to know about the industry this week, from renewables to storage to carbon prices.
Fertilizer supplier and trader Yara Clean Ammonia have signed a heads of terms agreement of terms agreement for renewable ammonia offtake from Scatec’s planned 150,000 mt/year plant in Egypt, Scatec said July 1.
Scatec is developing the joint venture project with the Egyptian Petrochemicals Holding Company (Echem) and Misr Fertilizers Production Company (Mopco), with plans to build a 240-MW electrolyzer powered by 480 MW of renewables at Mopco’s existing ammonia production facility in Damietta, Scatec said in a statement.
"This project will further strengthen our sourcing portfolio of renewable ammonia and is a testimony to Yara Clean Ammonia as the most preferred off-taker as the world's largest trader and distributor of ammonia," Yara Clean Ammonia CEO Hans Olav Raen said in the statement. "Once the project has reached a final investment decision, the renewable ammonia from this project will help us reliably serve our customers across several market sectors."
Yara has signed several low-carbon ammonia offtake agreements and is also developing several of its own low-carbon ammonia production projects.
Editor’s picks
US delays impede low-carbon hydrogen project participation in Japan, S. Korea subsidy schemes
Despite ambitious goals and hydrogen carbon intensity thresholds set by South Korea and Japan, delays in implementing low-carbon hydrogen projects in the US may impede their participation in subsidy programs aimed at incorporating low-carbon hydrogen derivatives into their energy sectors.
Japan, Philippines to develop Article 6.2 carbon credits from agriculture projects
Japan has published a draft Article 6.2 methodology for issuing carbon credits from projects that improve water management and cut greenhouse gas emissions in Philippine rice paddy fields, marking the first step toward extending Japan's Article 6.2 mechanism into the agriculture sector. The methodology enables carbon credits to be issued from select rice paddy fields if the water management approach can be altered from continuously flooded to single or multiple drainages, or from single to multiple drainages.
China initiates public consultation for compliance carbon market's rules in 2024-2025
China has launched a public consultation on compliance carbon market rules in 2024-2025, which moderately tighten China Emission Allowance (CEA) supplies and stimulus market liquidity. China’s Ministry of Ecology and Environment released a draft consultation document for internal circulation among power companies which relaxes the measures to tighten CEA supplies compared with an earlier version.
India announces next auction round for renewable hydrogen subsidies
The Indian government announced a new round of renewable hydrogen production capacity tenders under its subsidy plan for 450,000 mt/year, to provide winning projects fiscal support for three years. The tenders, part of the Rupee 197.44 billion ($2.37 billion) National Green Hydrogen Mission through to 2029-30, are the second for renewable hydrogen production after Reliance, Greenko, ACME and Welspun won contracts under the first in January.
Washington proposes new rule to track emissions from state's electricity providers The Washington State Department of Ecology aims to enact new electricity market rules in December, altering how electricity importers are tracked in the state’s carbon market, should it survive the upcoming November repeal vote. The rulemaking proposal aims to determine which electricity importers from centralized electricity markets are covered under Washington’s cap-and-invest program, not affecting eligibility criteria for the auctions.
Hydrexia, SEDCE sign up for hydrogen refueling, storage opportunities in Malaysia
China’s Hydrexia and Malaysia’s ICE SEDCE Hydrogen signed a heads of agreement to form a joint venture to develop and operate hydrogen refueling station and storage facilities in Malaysia. Hydrexia and ICE SEDCE will operate and maintain the hydrogen refueling station and hydrogen storage for the Rembus depot of the Automated Rapid Transit System, the first phase of the Kuching Urban Transportation System project of Sarawak Metro which comprises hydrogen fuel cell electric vehicles running on dedicated lanes.
Learn more about S&P Global Commodity Insights Energy Transition Services