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HomePosts Tagged "Yara International"
Agribusiness, Agro chems – Fertilizers, Company News, Europe, Sustainability, Sustainable Energy

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

Agribusiness, Agro chems – Fertilizers, Company News, Europe, Finance

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 News, Packaging & Labelling, Supply Chain, Sustainability, World

The company aims to reduce the carbon footprint of its packaging materials by 40 per cent by 2030 compared to 2021.

Yara is reducing its environmental impact and is introducing packaging made with at least 30 percent recycled plastic all over Europe during 2023. In agriculture, widespread and long-term use of plastic, coupled with lack of systematic collection and sustainable management, leads to plastic accumulation in soils and aquatic environments.

“Plastic pollution constitutes a planetary crisis demanding change in our approach to secure a sustainable future. To deliver on Yara’s ambition of growing a nature-positive food future, we are committed to continuously reducing our climate impact as well as the environmental footprint from the use of our products. That includes reducing the environmental impact of our plastic packaging materials by using recycled plastic, reducing plastic packaging, ensuring packaging is recyclable and working with other players in the value chain to collect and recycle material. Yara’s sustainable packaging roll out is a promising start to ensure that our packaging does not cause harm to nature,” says Bernhard Stormyr, VP Sustainability Governance at Yara International.

In agriculture, plastic is used for various purposes, such as protected cultivation films, nets, piping, irrigation, drainage, and packaging materials. While they can increase productivity and efficiency in all agricultural sectors and help minimize food loss and waste, plastics are a major source of contamination.

“The growing challenges of hunger, soil degradation, climate change, and supply chain disruptions demand immediate action from all of us. At Yara, we recognize that we need to take part in it. Across industries, there is an urgent need to better monitor the quantities of plastic products used that leak into the environment from agriculture. That is why we are taking measures in Europe and beyond to have all packaging recyclable by 2030, whilst at the same time securing the safety and quality of our product,” says Stormyr.

Here are Yara’s initiatives:

1. Using recycled plastic where possible

We strive to maximize the use of recycled plastic in our packaging materials, and several projects show promising results:

Big and small bags containing at least 30 percent recycled plastic are being rolled out all over Europe during 2023. If all Yara’s bags in Europe are replaced with these bags, it is estimated that we would reduce the amount of virgin plastic we use by around 3,000 tons per year and avoid some 6,000 tons of CO2e.

In Brazil, Yara has signed an agreement with a supplier to jointly develop a revolutionary new type of big bag. These new bags will be made from 100 percent recycled PET, and therefore have a substantially reduced impact on the environment, practically halving greenhouse gas emissions compared with the conventional bags, while maintaining the same technical properties. This project aims to replace around 2,000 tons of virgin plastic and reduce greenhouse gas emissions by about 4,000 tons each year. The main benefit of PET compared to other plastics currently used for the production of big bags is that it can be recycled endlessly without losing its strength and quality.

We are also working actively to launch similar initiatives in other markets around the world, e.g., in South Africa our big bag liners are now made with recycled plastic.

2. Ensuring packaging is designed for recycling

Our packaging materials are designed for recyclability and for avoiding excessive material use, and we continue to work on further improvements. Almost all the plastic that is used in our packaging can be recycled, provided that local collection and recycling schemes are available. The limited packaging materials that cannot yet be recycled will be re-designed for recyclability where possible.

3. Reducing the amount of plastic packaging material

We are also working on reducing the amount of plastic used per bag by optimizing specifications without compromising quality or safety, for instance by using thinner material. During the last few years, we have reduced plastic use by close to a thousand tons due to such optimizations in various markets around the world.

In Thailand, Yara developed a new, innovative fertilizer packaging material that drastically reduces the use of plastic. The special fabric called Light and Strong results in a fertilizer bag that is overall lighter, stronger, more durable and reusable. Current implementation of the solution saves around 150 tons of virgin plastic per year, with the potential to increase this by up to about 800 tons per year in the near future.

In India we reduced the thickness of the material for our 45 kg urea bags. Reducing the amount of plastic used per bag by a few grams cuts total plastic use for these bags by around 200 tons per year.

In our West African markets, optimizing bag specifications reduces our plastic use by more than 500 tons per year.

4. Working with other players in the value chain on collection and recycling schemes

As we do not produce or collect plastic packaging ourselves, we engage with various stakeholders to try to influence the way our plastic packaging is produced and the way it is handled after use. As with all complex value chains, one company cannot solve these challenges alone. We are using our purchasing power and strong supplier relationships to drive change in the areas where it is needed.

We are engaged with, and contribute to, collection and recycling schemes for agricultural plastics and our product packaging materials, including establishing such schemes together with others.

The company aims to reduce the carbon

Agro chems – Fertilizers, Agrotech, Company News, Europe, Sustainability

Yara Sluiskil will capture approximately 800,000 tons of CO2 from the process gas from its ammonia production each year.

Yara International, a leading global ammonia player, and Northern Lights, a CO2 transport and storage supplier, sign a binding commercial agreement, enabling the first cross-border transportation and storage of CO2. Yara aims to reduce its annual CO2-emissions by 800,000 tons from the ammonia production at Yara Sluiskil. The CO2 will be liquefied and shipped by Northern Lights from the Netherlands to permanent storage on the Norwegian continental shelf, 2.6 kilometres under the seabed.

Facts about the agreement

  • Yara Sluiskil will capture approximately 800,000 tons of CO2 from the process gas from its ammonia production each year
  • Yara Sluiskil will expand its CO2 liquification capacity to liquify 12 million tons of CO2 over the next 15 years with an estimated capex of approximately EUR 200 million
  • Northern Lights will ship liquified carbon dioxide from Yara Sluiskil in the Netherlands to Øygarden in Norway
  • The liquefied CO2 will initially be stored in onshore tanks at Øygarden, prior to injection into an offshore saline aquifer via pipeline for permanent and safe storage, 2,600 meters below the seabed
  • Operations will start in 2025 and continue for 15 years. 

This is a milestone for decarbonizing hard-to-abate industry in Europe and for Yara it’s an important step towards decarbonizing our ammonia production, product lines and the food value chain at large, says Svein Tore Holsether, CEO of Yara International.

We are very pleased that Yara has selected Northern Lights as CO2 transport and storage provider. This commercial agreement gives us the opportunity to further utilise the capacity at our storage site below the North Sea. It confirms the commercial potential for CCS and demonstrates that the market for transport and storage of CO2 is evolving rapidly, says Børre Jacobsen, Managing Director of Northern Lights.

Cutting 12 million tons of CO2 over the next 15 years

Cutting 800,000 tons CO2 in Yara Sluiskil corresponds to 0.5% of the total annual emissions (2022) in the Netherlands. Over the next 15-years Yara will remove approximately 12 million tons of CO2 from its production in Sluiskil.

 Yara Sluiskil is showing the way forward for European industry by taking another step on the decarbonization journey. Since 1990 Yara Sluiskil has cut 3.4 million tons of CO2 equivalents per year from its ammonia and fertilizer production, whilst at the same time almost doubling its production. Now we continue by reducing one of the biggest emission points in the Netherlands, says Michael Schlaug, VP Yara Netherlands.

Decarbonized future for food-production and shipping

 Clean ammonia can decarbonize hard-to-abate sectors like shipping, chemical production, and power production. It will enable the hydrogen economy, and the time to start using clean ammonia and hydrogen to decarbonize Europe is now, says Magnus Ankarstrand, President of Yara Clean Ammonia.

This project forms part of Yara’s ongoing strategic transition to decarbonize and future-proof its core production assets as Yara Sluiskil is one of the world’s largest ammonia and mineral fertilizer plants. In addition to this project, Yara is evaluating potential large-scale blue ammonia production projects with CCS in the US. Coupling these investments with its leading global ammonia position, Yara can profitably decarbonize its premium product operations in Europe while also diversifying its energy position. To allocate capital to this transition, Yara is considering a number of options including a minority divestment of YCA, asset divestments and other available funding sources.

CCS is key to decarbonize hard-to-abate industries in Europe

The world is closing in on 2030 and action is required to meet the objectives of the Paris Agreement. UN Secretary General Guterres stated in an address to the UN General Assembly on 20th September 2023: “We can – and we must turn up the tempo”. On 27th October 2022 in Oslo, EU Commissioner Simson expressed her conviction “that CCUS has incredible potential in our race to reach climate neutrality”. CCS provides a decarbonization solution to reduce climate emissions. The agreement between Yara and Northern Lights will kickstart the commercial market for CCS in Europe.

Yara Sluiskil will capture approximately 800,000 tons

Agro chems – Fertilizers, Company News, Europe, Finance

 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