Platts proposes launch of low-carbon Japan/Korea ammonia assessment

Platts, part of S&P Global Commodity Insights, is proposing the launch of a new daily, market-based low-carbon ammonia assessment—the Japan Korea Ammonia Marker, or JKAP—effective Sept. 1.

The new assessment, CFR basis Japan and Korea with a maximum carbon intensity of 40g CO2eq/MJ, would bring transparency to the growing market for low-carbon (blue) ammonia, driven by non-traditional sectors, notably power generation.

As part of this launch, Platts would also introduce a carbon escalator for the Japanese and Korean markets, which will provide additional insight into the per-point value of reduced carbon emissions in the rapidly emerging low-carbon ammonia sector.

The assessment would appear in the Fertecon Ammonia Daily Price Report publication and the Platts Hydrogen Daily.

Details of the proposed physical ammonia assessment are as follows:

Japan/Korea Ammonia Marker (JKAP)

• Quality: Anhydrous ammonia, which is around 82% Nitrogen and is stored and transported as a liquid under pressure at around minus-33 degrees Celsius.
• Quantity: 15,000-25,000 mt, normalized where necessary to 15,000 mt
• Basis and location: CFR Japan/Korea, spot
• Carbon Intensity: maximum 40g CO2eq/MJ including transportation to the point of CFR delivery. CI will be adjusted using a carbon escalator per point of CO2eq.
• Timing: Product to be loaded one to six weeks forward.
• Frequency: Daily
• Appears in: Fertecon Daily Ammonia Price Report, Platts Hydrogen Daily
• Unit of assessment: US dollars per mt

JKAP would consider market information reported to Platts and published throughout the day, including firm bids and offers, trades, and indicative values, as well as any other data deemed relevant to the assessment process.

Platts is seeking feedback on all elements of this proposal, in particular the most fungible specifications for low-carbon ammonia delivered into Japan and Korea, and the carbon escalator mechanism.

Please send any questions and comments to Fertilizer@spglobal.com, Platts_Carbon@spglobal.com, and PriceGroup@spglobal.com by July 21.

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.