Trafigura and Yara Sign Memorandum of Understanding to Explore Opportunities for Joint Business in Clean Ammonia

Oslo and Singapore, June 7, 2021: Trafigura Pte Ltd ("Trafigura"), one of the world's leading independent commodity trading companies, and Yara International ASA ("Yara"), a leading global ammonia player, have signed a Memorandum of Understanding to collaborate on the development and promotion of the use of ammonia as a clean fuel in shipping and to explore possible opportunities to work together on certain clean (green and blue) ammonia fuel infrastructure and market opportunities.

Reducing shipping emissions is a vital component of the fight against global climate change, yet greenhouse gas emissions from the global maritime sector are increasing. The Fourth IMO Greenhouse Gas study, published in August 2020 predicts that emissions could increase by as much as 130 percent by 2050 compared with 2008 levels. To reverse this alarming trend the ships in use, the fuels that power them and the related infrastructure all need to change as the industry transitions to low or zero-carbon maritime fuels.

Both Yara and Trafigura have taken a number of steps to progress towards making the transition to a greener economy a reality. For the first time the two companies intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain.

Under the MoU announced today, Trafigura and Yara intend to collaborate in the following areas:

• The supply of clean ammonia by Yara to Trafigura Group companies
• Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
• Development of new clean ammonia assets including marine fuel infrastructure and market opportunities
  
  

"This agreement is another good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy - not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," says Magnus Krogh Ankarstrand, President of Yara Clean Ammonia.

"There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential," said Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.

Trafigura has co-sponsored the R&D of MAN Energy Solutions' ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.

Yara is a world leader in ammonia, with long experience and leading positions within global ammonia production, logistics and trade. The Oslo-based company produces roughly 8.5 million tonnes of ammonia annually. Yara employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity - enabling it to produce and deliver ammonia across the globe. Yara recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.

For further information, please contact:

Yara Press Office:

Thor Giæver, SVP Investor Relations
Mobil: (+47) 480 75 356
E-mail: thor.giaver@yara.com

Josiane Kremer, Director External Communications
Mobil: (+47) 481 80 451
E-mail: josiane.kremer@yara.com

Trafigura press office:

Tel: +41 (0) 22 592 4528
Email: media@trafigura.com

About Yara
Yara grows knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger and a planet respected, we pursue a strategy of sustainable value growth, promoting climate-friendly crop nutrition and zero-emission energy solutions. Yara's ambition is focused on growing a climate positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.

To achieve our ambition, we have taken the lead in developing digital farming tools for precision farming, and work closely with partners throughout the food value chain to improve the efficiency and sustainability of food production. Through our focus on clean ammonia production, we aim to enable the hydrogen economy, driving a green transition of shipping, fertilizer production and other energy intensive industries.

Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry's only global crop nutrition company. We operate an integrated business model with around 17,000 employees and operations in over 60 countries, with a proven track record of strong returns. In 2020, Yara reported revenues of USD 11.6 billion. Visit: www.yara.com

About Trafigura
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world and has recently established a power and renewables trading division.

The trading business is supported by industrial and financial assets, including majority ownership stakes in Nyrstar, Puma Energy, Impala Terminals and Trafigura Mining. Trafigura, co-owns TFG Marine, a global marine fuels supply and procurement joint venture, also owned by ship owning companies Frontline Ltd and Golden Ocean Group Ltd. The combined marine fuel demand from Trafigura, Frontline and Golden Ocean, covering a fleet of some 700 owned and chartered vessels, provides economies of scale, and lays the foundation for TFG Marine to become one of the world's largest fuel procurement and supply alliances, generating substantial demand in key bunkering hub ports globally.

Over 8,500 employees work in 48 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD147 billion in 2020. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade. Visit: www.trafigura.com

Attachments

• Yara ammonia plant in Porsgrunn, Norway (01)
• Yara ammonia plant in Porsgrunn, Norway (02)