Yara invests in CCS in Sluiskil and signs binding CO2 transport and
storage agreement with Northern Lights – the world’s first
cross-border CCS-agreement in operation
Oslo, 20 November 2023: 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.
- 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.
CCS is a cost-efficient decarbonization solution that is
compatible with existing European production infrastructure,
especially in the case of ammonia and fertilizer production. We
need to use all technologies at our disposal to address the climate
emergency. European industries are eagerly awaiting the EU’s CCUS
strategy, to be announced early next year. To realize the full
potential of this decarbonization route, CCS projects need to be
supported by a dedicated regulatory environment for CO2 transport
and storage infrastructure.
- To succeed with the green transition, we need strong
partnerships and support from governments and the EU. CCS is an
important part of the solution. Together we can significantly
reduce GHG emissions and take us further step closer to transform
industry and reduce emissions, says Holsether, CEO Yara
International.
- Norway has the potential to provide Europe with significant
CO2 storage, which will help the EU to reach their climate targets.
It is a safe and efficient way to handle emissions and this
agreement demonstrate that, says Børre Jacobsen, Managing Director
of Northern Lights.
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
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 nature 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 2022, Yara reported
revenues of USD 24 billion.
www.yara.com
About Yara Clean Ammonia
Yara grows knowledge to responsibly feed the world and protect
the planet. Yara Clean Ammonia is uniquely positioned to enable the
hydrogen economy in a market expected to grow substantially over
the next decades. We aim at significantly strengthening our leading
global position as the world’s largest ammonia distributor,
unlocking the green and blue value chains, and driving the
development of clean ammonia globally.
Building on Yara’s leading experience within global ammonia
production, logistics and trade, Yara Clean Ammonia works towards
capturing growth opportunities in low-emission fuel for shipping
and power, carbon-free food pro-duction and ammonia for industrial
applications.
Yara Clean Ammonia operates the largest global ammonia network
with 15 ships and access to 18 ammonia terminals and multiple
ammonia production and consumption sites across the world, through
Yara. Revenues and EBITDA for the full year 2022 were USD 4,422
million and USD 249 million respectively. Yara Clean Ammonia is
headquartered in Oslo, Norway
www.yaracleanammonia.com
About Northern Lights
Northern Lights is developing the world’s first cross-border CO2
transport and storage infrastructure. Delivering CO2 transport and
storage as a service, Northern Lights enables mitigation of
industrial emissions that cannot be avoided and accelerates the
decarbonisation of European industry. Drawing on experience from
over 25 years of CO2 storage on the Norwegian Continental Shelf,
Northern Lights are at the forefront of developing CCS
technologies. The company will transport liquefied CO2 from capture
sites to an onshore receiving terminal in western Norway, before
transporting it by pipeline for permanent storage in a reservoir
2,600 metres under the seabed. CCS is a necessary climate solution
to decarbonise industry and reduce or remove industrial CO2
emissions. On schedule to be ready to receive CO2 in 2024, Northern
Lights offers safe and reliable CO2 transport and storage services
to industrial emitters in Norway and across Europe. Northern Lights
JV DA is a registered, incorporated General Partnership with Shared
Liability (DA) owned by Equinor, TotalEnergies and Shell.
www.norlights.com
For media inquiries, please contact:
Yara International: Kaia Jarlsby Mobile: +47 977 94 088 Mail:
kaia.jarlsby@yara.com
Yara Clean Ammonia:Hilde SteinfeldMobile: +47 99 35 30 30Mail:
hilde.steinfeld@yara.com
Northern Lights:Benedicte StaalesenMobile: +47 468 11
754Mail: media@norlights.com
Investor contact in Yara International: Maria
GabrielsenMobile: +47 92090093Mail:
maria.gabrielsen@yara.com
- Northern Lights storage tanks
- Northern Lights jetty
- Northern Lights onshore pipeline
- Northern Lights storage tanks
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