The Importance of Pure Hydrogen for Food Safety and Availability - Ryze Hydrogen
In a strategic move towards a greener future, Yara International, a leading global producer of nitrogen-based fertilizers, is investing heavily in green and blue hydrogen production. This shift comes at a time when the fertilizer industry faces mounting challenges, including its contribution to greenhouse gas emissions and dependence on volatile fossil fuel markets.
Ammonia, a favored method for transporting hydrogen over long distances due to its superior volumetric density, is at the heart of Yara's new strategy. By investing in hydrogen production, Yara aims to reduce its carbon footprint and contribute to food security, a concern exacerbated by the industry's dependence on certain geopolitical players.
Over the past year, Yara Clean Ammonia has signed deals with industry majors such as MOL, Amogy, Pilbara Ports, and Lloyd's Register for building an ammonia supply chain. These partnerships are crucial steps towards Yara's goal of expanding its green and blue hydrogen production facilities to support the growing demand for sustainable and low-carbon ammonia.
The fertilizer industry, which accounts for 2.1% of all greenhouse gas emissions, has been under pressure due to rising costs. The increase in natural gas cost, a primary input for fertilizer production, has resulted in a rise in the cost of fertilizer. This, coupled with the fertilizer industry's dependence on Russia for one of its major inputs, has posed a significant risk to food security.
Yara's focus on clean hydrogen production and transportation is likely to alleviate these concerns. By producing green hydrogen without the use of natural gas, Yara is reducing its carbon emissions and contributing to a more sustainable future.
In Norway, Yara is collaborating with Orsted on green hydrogen production and purchasing. This partnership is part of a broader strategy to expand Yara's hydrogen transportation and distribution infrastructure. By doing so, Yara aims to become a key player in the hydrogen economy.
In the Netherlands, CO2 from operations is buried under the North Sea with assistance from energy majors Shell, Total, and Equinor, demonstrating the potential for carbon capture and storage technology in the hydrogen production process.
Svein Tore Holsether, CEO of Yara International, has stated that Putin is weaponizing food and fertilizer, a reference to the soar in the cost of natural gas following Vladimir Putin's invasion of Ukraine last year. By expanding its ammonia import facilities, Yara plans to import significant amounts of hydrogen, potentially mitigating the impact of such geopolitical events on the fertilizer industry.
The expansion of Yara's ammonia import facilities could have far-reaching implications for the hydrogen economy. By increasing the capacity of its facilities from 600,000 tons to 3 million tons, equivalent to approximately 530,000 tons of hydrogen, Yara is positioning itself as a major player in the global hydrogen market.
As the largest ammonia trader in the world, Yara sees a significant business opportunity in hydrogen transportation. The cost of food has risen to record levels globally, and the shift towards sustainable, low-carbon ammonia production could help alleviate some of these pressures.
In conclusion, Yara's investment in green and blue hydrogen production is a strategic move towards a more sustainable future for the fertilizer industry. By reducing its carbon footprint, mitigating geopolitical risks, and contributing to food security, Yara is positioning itself as a leader in the global transition towards a hydrogen economy.
