S&P Global launches blue ammonia price, premium assessments

S&P Global Commodity Insights has launched a suite of global low-carbon ammonia ("blue ammonia") price assessments, and premiums for blue ammonia versus conventional "grey" ammonia, effective April 22 as an addition to the current ammonia offerings.

The current S&P Global Energy Transition (ET) price offerings already include conventional ammonia price assessments in Asia, the Middle East, Europe and North America, and a wide slate of hydrogen price assessments.

Blue Ammonia is considered a crucial carrier within the ET space for hydrogen and for usage on its own as a fuel for power generation and as bunker fuel.

S&P Global publishes daily Blue Ammonia premiums for the following locations that have a high potential to become Blue Ammonia hubs as global markets emerge, and where conventional ammonia markets already exist: Far East Asia, the Middle East, Northwest Europe, and the US Gulf. In addition to the premiums, Blue Ammonia daily price assessments are launched for Far East Asia, the Middle East, and Northwest Europe.

Daily Blue Ammonia assessments on CFR Far East Asia basis represent cargoes delivered into major ports that can accommodate ammonia cargoes in China, Japan, South Korea, and Taiwan. CFR Northwest Europe represents cargoes for delivery into major ports that can accommodate ammonia cargoes in Belgium, Germany, the Netherlands, and northern France. In addition, daily assessments are published on an FOB Middle East basis for major loading points that can accommodate ammonia cargoes in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

In the absence of spot market activity, the Blue Ammonia premiums take into account the difference in cost of production pathways between ammonia with and without carbon capture and sequestration (CCS). For the Far East Blue Ammonia premium, this calculation takes into account the difference in cost of production pathways between ammonia with and without CCS in the Middle East.

For the Middle East, this premium takes into account the difference in cost of production pathways between ammonia with and without CCS in Saudi Arabia.

For Northwest Europe, this premium takes into account the difference in cost of production pathways between ammonia with and without CCS in the Netherlands. For the US, this premium takes into account the difference in cost of production pathways between ammonia with and without CCS in in the US Gulf Coast area.

The methodology and specification are the same as for the existing ammonia price assessments, which are as following:

Material from countries that are subject to international trade sanctions are excluded from the assessment process.

For the European market, Platts assessments represent duty-free cargoes. Cargoes incurring any duty might be normalized as part of the European assessment process.

For the CFR Far East Asia and CFR Northwest Europe Blue Ammonia price assessments, this is for parcels to be delivered 15-45 days forward from the date of publication. Daily assessments for FOB Middle East are for parcels loaded 15-30 days forward from the date of publication. The cargo size of the assessed locations is 20,000-40,000 mt for CFR Far East Asia; 20,000-25,000 mt for CFR Northwest Europe, and 15,000-40,000 mt for FOB Middle East. Platts may use information with different cargo sizes after normalization. The assessments are in US Dollar, and published in both metric ton (mt) and Metric Million British Thermal Unit (MMBtu).

The assessments are cash prices, net of any credit. S&P Global may use information with longer credit terms after normalization. Regarding the quality specifications, assessments take into consideration cargoes with a minimum purity of 99.5% of anhydrous ammonia by weight, a maximum water content of 0.5% by weight, and a maximum oil content of 10 ppm by weight. Daily assessments on CFR Far East Asia and FOB Middle East basis are based on the latest information sourced from the market up to the close of the assessment window at 4:30 pm Singapore time.

The daily assessment on CFR Northwest Europe basis is based on latest information sourced from the market up to the close of the assessment window at 4:30 pm London time. The daily premium assessment for the USGC is based on latest information sourced from the market up to the close of the assessment window at 1:30 pm Houston time.

The published prices are as following:

Please send all questions and comments to hydrogenassessments@spglobal.com and pricegroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by S&P Global for public viewing. S&P Global will consider all comments received and will make comments not marked as confidential available upon request.