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The hydrogen is produced with electrolysis of water and renewable energy, replacing natural gas as feedstock and annually cutting 41,000 tonnes of CO2 emissions from the site.

 Yara International announced the opening its renewable hydrogen plant at Herøya, Norway. Yara is now producing renewable hydrogen and ammonia and has already delivered the first tonnes of fertilizers made from renewable ammonia produced at this plant. “This is a major milestone for Yara and for the decarbonization of the food value chain, shipping fuel and other energy intensive industries,” says Svein Tore Holsether, President & CEO of Yara.

The Norwegian Prime Minister Jonas Gahr Støre inaugurated the 24 MW renewable hydrogen plant at Herøya Industrial Park, the largest of its kind currently in operation in Europe. The hydrogen is produced with electrolysis of water and renewable energy, replacing natural gas as feedstock and annually cutting 41,000 tonnes of CO2 emissions from the site.

“This is a ground-breaking project and a testament to our mission to responsibly feed the world and protect the planet. I want to thank our dedicated employees who have worked tirelessly to get this cutting-edge production up and running, Enova for supporting the project, our partners and our brave customers who are first movers towards a more sustainable future. We are very pleased to have delivered the first tonnes of low-carbon footprint fertilizers to Lantmännen, a partnership which serves as a concrete example of how collaboration across the entire food value chain is required to decarbonize. Together, we have made this important step towards decarbonizing hard to abate sectors,” says Holsether.

The low-carbon footprint fertilizers produced and delivered will be part of a new portfolio called Yara Climate Choice. These solutions will benefit crops while at the same time contributing to decarbonizing the food value chain and reducing climate impact. In addition to fertilizers produced with electrolysis of water and renewable energy, fertilizers based on low-carbon ammonia produced using carbon capture storage (CCS) will be a large part of Yara’s portfolio going forward.

Renewable ammonia is an important part of the decarbonization puzzle, however developing it at scale takes time. As the world is rapidly approaching 2030, we are also working to produce low-carbon ammonia with CCS to enable the hydrogen economy and develop the emerging markets for low-emission ammonia,” says Hans Olav Raen, CEO of Yara Clean Ammonia.

In 2023, Yara signed a binding CO2 transport and storage agreement with Northern Lights, the world’s first cross-border CCS agreement in operation. Yara aims to reduce its annual CO2-emissions by 800,000 tons from the ammonia production at Yara Sluiskil. Yara is also evaluating one to two world-scale low-carbon ammonia production projects with CCS in the US.

“The world needs to act urgently on multiple fronts to reach the goals of the Paris Agreement, and CCS is a critical steppingstone to decarbonize rapidly and profitably. The green transition will require investments, predictable framework conditions, massive build-out of renewable energy and grid, continuously advancing technology, and a maturing market where demand and supply are developed simultaneously. The companies who take this seriously will have a competitive advantage. At Yara, we have already reduced our emissions by 45 percent since 2005, and with our strategy to profitably deliver decarbonized solutions quickly and at scale, produced with both renewable energy and CCS, we are uniquely positioned to deliver, both to shareholders, customers, employees and society at large,” says Holsether.

The hydrogen is produced with electrolysis of

Total deliveries up 12 per cent with European deliveries up 37 per cent from Q1 FY23.

Yara reported first-quarter EBITDA1 at USD 435 million compared to USD 487 million in first quarter 2023. Net income was USD 16 million (USD 0.07 per share) compared with USD 105 (USD 0.41 per share) a year earlier.

First-quarter 2024 highlights:

  • EBITDA1 down 11 per cent from 1Q23 mainly due to lower prices
  • Total deliveries up 12 per cent with European deliveries up 37 per cent from 1Q23
  • Reduced GHG emission intensity with implementation of key projects
  • Healthy demand growth and limited capacity additions indicate tightening supply-demand balance longer term

“This quarter’s results are down from same quarter last year as increased deliveries are offset by lower prices. Meanwhile, I am pleased to see that our efforts to decarbonize is yielding results. This is crucial to future-proof our business and be able to meet growing demand for low-carbon solutions”, said Svein Tore Holsether, President and Chief Executive Officer.

Despite strong urea supply in 2023, prices are generally demand-driven with positive production margins for even swing producers. With farmer incentives at normal levels and 10-year consumption growth trending at 1.9 per cent per annum, demand fundamentals are supportive for upcoming seasons. While the peak of new capacity additions is now behind us, urea supply is currently strong primarily due to increased production in India and China. However, industry consultant projections show significantly lower supply growth from 2024 onwards. Combined with strong demand fundamentals, this indicates a tightening supply-demand balance longer term.

“Total nitrogen imports to Europe are declining as European production is ramping up. However, Russian urea imports to Europe reached an all-time high last season and currently account for almost one third of total urea imports to the EU. While raw material sanctions and price pressure is taking a double toll on European industry, Russia is gaining market influence. That not only endangers European industry and the green transition, but it also makes European food production more vulnerable,” said Holsether.

The energy transition, climate crisis, and food security remain top priorities globally. With its leading food solutions and ammonia positions, Yara is uniquely positioned to drive these transformations. Yara’s strategy is focused on further strengthening operational resilience and flexibility, and profitable growth in low-carbon solutions. This will support the transformation of the global food system, generate long-term growth opportunities, and drive progress towards Yara’s ambition of growing a nature-positive food future.

Total deliveries up 12 per cent with

 Company’s EBITDA is down 62 per cent due to reduced margins.

Oslo based Yara International announced Third -quarter results of 2023.  Third-quarter EBITDA excl. special items1 was USD 396 million, compared with USD 1,001 million a year earlier. Net income was USD 2 million (USD 0 per share) compared with USD 402 million (USD 1.57 per share) in third quarter 2023.

The main elements of the third-quarter results are:

  • EBITDA down 62 per cent due to reduced margins
  • Operating cash flow of 1 BUSD primarily due to operating capital release
  • European nitrate price negatively impacted by long order book at start of 3Q
  • Supportive fundamentals for full season but uncertain phasing of deliveries

“Third-quarter results are impacted by strong price declines compared to last year, as the nitrogen industry continues to operate in a lower margin environment. Although agricultural fundamentals are supportive, nitrogen markets remain sensitive to geopolitical and commodity market volatility,” said Svein Tore Holsether, President and Chief Executive Officer at Yara.

“War, geopolitical instability, and the climate crisis are having major impacts on food security. It is therefore even more important to safeguard Europe’s strategic autonomy in within food and fertilizer, and to accelerate the green transition of European agriculture and industry,” said Holsether.

Nitrogen markets saw significant volatility in the third quarter, with the start of the new northern hemisphere season. The quarter began with swift nitrogen price responses to positive market news, with both improved demand and tighter supply. Demand softened in the mid-quarter as urea prices declined and European customers were reluctant to take further positions early in the new season.

Although the season for the European nitrogen industry is off to a slower start than in previous years, fundamentals for the full season are supportive. Agricultural conditions are favourable, and industry consultants forecast increased cereal production in 2023/24, despite drought in several regions earlier this year. Although fertilizer affordability reduced during the quarter, it is still above historical averages, and optimal application rates are up compared to the 22/23 season. However, as normal at this stage of the season, phasing of deliveries is uncertain and there is risk of new nitrogen curtailments if slow European demand continues. The energy transition, climate crisis and food security are top priorities globally. With its leading food solutions and ammonia positions, Yara is uniquely positioned to drive these transformations.

 Company’s EBITDA is down 62 per cent