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Decarbonizing Global Shipping with ZNZ Fuels

To create a level playing field where ZNZs can compete with conventional fossil fuels for shipping, it is critical that the International Maritime Organization introduces strong financial incentives for ZNZs from day one.

Shipping accounts for 3% of global greenhouse gas emissions and remains heavily dependent on conventional fossil fuels.

The IMO has a critical role to play in ushering in the new fuels required for a decarbonized future for global shipping. To succeed, ZNZ fuels must be made as affordable as today’s fossil fuels. A clear business case for ZNZs is essential.

The Member States of IMO can make this happen by agreeing on measures that ensure price parity for scalable ZNZ fuels, and strong financial incentives for ZNZs from day one. If the cost gap is not closed between existing alternatives and ZNZ fuels, the shipping industry will always choose the most economically sustainable option.

Yara’s key policy asks

By incorporating the following principles, the IMO can create a powerful and effective framework that accelerates the transition to ZNZ fuels, ensuring a fit-for-future shipping industry.

Polluter Pays Principle

A GHG levy ensures fair fuel costs and drives ZNZ fuel adoption.

End Fossil Fuel Advantage

IMO must remove fossil fuel cost benefits to speed up decarbonization.

Rewards for ZNZ Fuels

Policies should incentivize low-emission fuel adoption under IMO's strategy.

The benefits of low emission ammonia as shipping fuel

Low emission ammonia is a viable solution for cutting emissions in the maritime industry. Ammonia does not contain carbon and is emission free when burned. The infrastructure for ammonia is already in place and is a product that has been produced, transported on land and on sea and used for more than 100 years. Robust safety systems have been developed during this period to handle ammonia, always considering safety first. Now it is a matter of scaling up production and infrastructure to supply a new market. Incentives will create demand for low-carbon products. Yara stands ready to scale up.

Yara as a global ammonia player

Yara is the world’s second largest ammonia producer, with the world’s largest stablished value chain for ammonia from production via freight to storage and terminals. While most of today’s ammonia goes directly to fertilizer production, ammonia is also the most promising, scalable low emission fuel solution for shipping. Yara Clean Ammonia (YCA) – a subsidiary of Yara International – is dedicated to addressing the challenges of decarbonization and energy transition. With multiple ammonia production- and consumption sites across the world, we have a significant presence in the ammonia sector, serving multiple countries and markets. We believe that we need all the ZNZ fuels to decarbonise global shipping, and low emission ammonia is one of those.

“When the incentives are there, Yara is ready to scale up.”

Svein Tore Holsether
CEO of Yara International