Platts to launch low-carbon Japan/Korea ammonia assessment

Platts, part of S&P Global Commodity Insights, will launch a new daily, market-based low-carbon ammonia assessment, the Japan Korea Ammonia Price (JKAP), effective Sept. 4.

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

Platts originally proposed the launched of the JKAP assessment on July 4 in a subscriber note available here.

Details of the physical ammonia assessment are as follows:

Japan/Korea Ammonia Price (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: Spot, CFR Japan and Korea, basis Nagoya
• Carbon Intensity: Maximum 40g CO2eq/MJ (roughly equivalent to 720 kg CO2eq/mt ammonia) gate to gate, excluding transportation to the point of CFR delivery
• Timing: Product to be loaded one to six weeks forward
• Frequency: Daily, 1630 London timestamp
• Appears in: Fertecon Daily Ammonia Price Report, Platts Hydrogen
• Daily Unit of assessment: US dollars per mt

JKAP will 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.

The assessments will appear in the Fertecon Ammonia Daily Price Report publication and the Platts Hydrogen Daily and follow the London holiday calendar.

As part of this launch, Platts will also produce an equivalent daily $/MMBtu assessment.

Platts continues to invite feedback on the most relevant ways of producing a carbon escalator for the Japanese and Korean ammonia markets.

Please send any further questions and comments to Fertilizer@spglobal.com, Platts_Carbon@spglobal.com, and PriceGroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.