COMMODITY trading company Trafigura has signed a memorandum of understanding with green fuels startup Hy2gen to produce a study that will look at the infrastructure and production demands for green ammonia to decarbonise the shipping industry.
The study will be aimed at quantifying the needs of the shipping industry for green ammonia as the industry transitions to low and zero carbon maritime fuels. It will consider the necessary aspects to enable large-scale commercial adoption, including the required quantities of green ammonia, and the transport and storage capacities that will be needed.
In a statement, the companies said building the infrastructure to enable an efficient supply chain that can deliver sufficient quantities of renewable and carbon free green ammonia to market will demand enormous commitments in production, infrastructure and shipping upgrades that the study aims to quantify.
Hy2gen CEO Cyril Dufau-Sansot said, “As one of the largest physical commodity traders and vessel charterers in the world, Trafigura is uniquely placed to push this transition forward”.
Trafigura has been an investor in Hy2gen since 2019.
Trafigura head of power and renewables Julien Rolland said, “Hy2gen is a first mover and pioneer in green ammonia production and concept development. We very much recognise their capacity to quickly execute projects of scale that can fast track the transition for the shipping industry to run on clean fuels”.
