Yara Clean Ammonia, the world’s largest trader and distributor of ammonia, has forged a long-term deal with India-based Greenko ZeroC (formerly known as AM Green), the green ammonia production arm of the India-based AM Green.

This historic deal majorly boosts the green ammonia industry and propels the net zero goals of both economies.

Unlocking the Key Features of the Green Ammonia Deal

The agreement and the term sheet ensure the supply of 50% renewable ammonia from Phase 1 of AM Green’s ammonia production plant located in Kakinada, Andhra Pradesh.

The document further states that Greenko’s plant will produce, and export renewable ammonia derived from round-the-clock carbon-free energy by 2027.

The press release from Yara Ammonia highlights two important aspects of this deal:

AM Green’s platform will ensure compliance with EU RFNBO and Renewable Energy Directive requirements for renewable ammonia and other sustainable fuels.
Yara Clean Ammonia will utilize the renewable ammonia supply to manufacture low-emission fertilizer and to decarbonize industries such as shipping, power, and energy-intensive sectors.

Mr. Mahesh Kolli, President of AM Green has expressed himself with a note,

“We are delighted to partner with Yara Clean Ammonia to propel the transformation of various industries and several OECD economies. Continuous focus on innovation combined with execution reinforces AM Green’s leadership position as a global clean energy transition solutions platform for low-cost green molecules such as hydrogen, ammonia, fuels, and other chemicals.”

READ MORE: Indian Government Announces Massive New Green Hydrogen Project • Carbon Credits

Clean Ammonia: Fuelling the Future  

Ammonia, with no CO2 emissions upon combustion, is poised to be a key fuel in the future, aligning well with the hydrogen economy. Unlike liquid hydrogen, ammonia doesn’t require extreme cooling and boasts superior energy density. This renders it more practical for transportation and storage.

Moreover, ammonia production utilizing renewable energy sources leads to negligible or zero GHG emissions.

Scaling Up: AM Green’s Bold Plan for a Mega-Scale Green Ammonia Platform

Founded by the creators of Greenko Group, the company is building production capacity for green molecules, including:

green hydrogen
ammonia,
biofuels and e-methanol
sustainable aviation fuels,
high-value downstream chemicals

Its main goal is to decarbonize the tough industries. Additionally, Greenko plans to establish an international renewables and storage business by collaborating with John Cockerill of Belgium. Together they would manufacture electrolyzers to produce green ammonia.

Uniper and Greenko signed exclusivity for Green Ammonia offtake to the EU from India’s first Green Ammonia Project in Kakinada. Their press release states that they have collaborated to negotiate innovative pricing and supply. Together they would “build a tenure structure for a unique supply and purchase agreement for 250,000 T per annum of Green Ammonia (GASPA) based on the Heads of Terms.” 

Greenko’s Kakinada project is a multi-phase green ammonia production and export facility. It would be one of the world’s largest green ammonia platforms.

Furthermore, the company’s annual report reveals that:

Greenko is building a 2 GW per year Alkaline Electrolyser manufacturing capacity. It can produce 1 Lakh TPA Green Ammonia that will be operational by 2024.
Further, 1 MTPA Green Ammonia manufacturing capacity will be supplemented in the next two consecutive years summing up to 3.1 MTPA capacity by the end of 2026.
Additionally, there are plans to increase the capacity to 5 MT per annum by 2030.

Greenko’s Green H2 and Energy Carrier Architecture

source: Greenko

Yara’s Ambitious Decarbonization Goals for its Ammonia Plant

Yara Clean Ammonia headquartered in Oslo, Norway operates the largest global ammonia network with 15 ships. Through Yara, it has access to 18 ammonia terminals and multiple ammonia production and consumption sites worldwide.

In 2021, Yara received NOK 283.25 million from Enova to develop a green ammonia initiative. It marked the first step towards fully decarbonizing the Herøya ammonia plant in Porsgrunn, Norway.

The Herøya fertilizer factory ranks among Norway’s top CO2 emitters outside the oil and gas sector, releasing 800,000 tonnes of CO2 annually. Hydrogen, vital in fertilizer production, is currently derived from liquefied fossil gas, but Yara aims to shift to renewable energy sources, enabling emission-free ammonia production.

CEO Svein Tore Holsether emphasizes Norway’s unique opportunity to lead the green transition. He highlighted green ammonia’s versatility and its role in reducing emissions in global food production and long-distance shipping. Yara’s corporate board commits to investing in a 24 MW demonstration plant, making it one of the world’s largest green ammonia production projects.

Yara reports that this shift to renewable energy will cut CO2 emissions by about 41,000 tons yearly. It would also produce enough hydrogen to yield 60,000 – 80,000 tonnes of green, fossil-free mineral fertilizer annually.

Another landmark deal is the Yara Clean Ammonia and Cepsa partnership. This initiative aims to decarbonize the European industry and maritime transport by creating a secure and cost-effective supply chain for low-emission ammonia and hydrogen.

Strategy scorecard of Yara Ammonia

source: Yara’s report

Considering the AM Green collaboration, Hans Olav Raen, CEO, of Yara Clean Ammonia commented,

“The AM Green Kakinada project expands our portfolio of ammonia produced with renewable energy and consolidates Yara Clean Ammonia’s position as a reliable supplier of low-emission ammonia to established and emerging markets like fertilizer production, cracking of clean ammonia to hydrogen, shipping fuel, power generation, and other industrial applications.”

We can conclude from this report that the Yara Ammonia-Greenko deal could revolutionize sustainable energy architecture by ambitiously ramping up green ammonia production and supply. Notably, it indicates a substantial potential!

FURTHER READING: Woodside Energy Collaborates with Yara Pilbara to Explore CCS in Australia • Carbon Credits

The post Yara Clean Ammonia Signs Historic Deal with India’s Greenko ZeroC to Ramp Up Green Ammonia Supply appeared first on Carbon Credits.

Xpansiv’s CBL voluntary carbon market (VCM) activity saw significant block trades at both the beginning and end of the week. The week started with a block trade of 175,000 N-GEO Trailing contracts settling at $0.35, marking the largest trade of the week at the lowest unit price. 

The data presented in the report is from the Xpansiv Data and Analytics database. It offers a comprehensive collection of spot firm, indicative bids/offers, and transaction data.

Xpansiv provides extensive market data sourced from CBL, recognized as the world’s largest spot environmental commodity exchange. This includes daily and historical information on bids, offers, and transactions for various environmental assets:

Voluntary carbon credits,
Compliance carbon, and
Voluntary renewable energy certificates. 

On Friday, block trades of 1.2 million metric tons of CBL N-GEO and CBL GEO December futures occurred at $0.99 and $0.44, respectively, driving weekly price gains of 7% and 16% in the contracts.

Trades and Trends from the CBL’s VCM Report

Blocks of N-GEO-eligible carbon credits were settled at prices up to $5.50. This is consistent with the $5.40 monthly average for recent-vintage, spot AFOLU credit transactions on the exchange. Pilot-phase CORSIA GEO-eligible credit blocks traded up to $1.35, slightly below CBL’s $1.98 monthly average price for technology credits. Additionally, 111 OTC-matched ACCU credits were settled via the trading platform.

On-screen matched trades included 500-ton lots of GS 11134 vintage 2022 Rwandan energy efficiency credits traded at $6.50. And VCS 1477 vintage 2016 Cambodian Mai Ndombe AFOLU credits traded at $1.25.

A total of 275,167 tons were traded via the CBL spot exchange. Plus, an additional 1,810,000 tons were traded via CME Group’s CBL GEO Emissions futures complex.

New offers in the voluntary carbon trading platform included VCS REDD, ARR, and cookstove carbon credits at prices up to $11.00. A request-for-quote (RFQ) seeking bids for 30,000 MWh of South African solar I-RECs generated in 1H 2024 was also circulated at an indicated offer price of $1.00/MWh.

In the North American Compliance Market, there was significant activity with over 70,000 PJM credits exchanged via CBL. This activity was primarily due to counterparties settling bilateral transactions through CBL’s post-trade infrastructure. 

Specifically, 25,000 vintage 2023 Virginia credits were settled, along with 3,574 vintage 2024 DC solar credits and 14,643 vintage 2023 Maryland solar credits.

Screen trading was concentrated in tier 1 PJM markets, where Pennsylvania vintage 2024 credits saw a rise to $35.00 on 9,551 credits traded. Similarly, vintage 2023 Maryland credits experienced a $0.25 increase to $28.00. Finally, there were 6,851 vintage 2024 Virginia credits traded on the CBL at $35.00.

RELATED: Emissions Futures Rally by Over 25%: Insights from Xpansiv’s CBL Platform

Xpansiv Connect to Revolutionize Market Infrastructure

Following their report, Xpansiv® has introduced Xpansiv Connect, an open-access infrastructure designed to facilitate the scaling of the global energy transition. This initiative includes integration with leading multi-registry environmental asset management and automated settlement systems.

Xpansiv Connect offers all stakeholders seamless access to the company’s sophisticated trading, post-trade settlement, meta-registry, and portfolio management platforms. These include end users, brokers, banks, exchanges, and other service and platform providers. 

The platform comes fully integrated with 13 leading global registries. Moreover, Xpansiv Connect supports 5 voluntary carbon credit marketplaces and a vast network of hundreds of direct market participants.

Xpansiv is collaborating with prominent market participants globally to develop and enhance solutions and services using the platform. These collaborators include Trafigura, MSCI Carbon Markets, GoNetZero, and Patch.

John Melby, Chief Executive Officer of Xpansiv®, emphasized the importance of launching this new system, saying that: 

“We believe opening access to our proven, institutional-grade technology infrastructure will best support the ecosystem of interoperable technology and market solutions needed to achieve a timely and equitable global energy transition.” 

Partnerships and Collaborations for a Sustainable Energy Transition

The launch of Xpansiv Connect marks a significant milestone as it opens up Xpansiv’s automated settlement and multi-asset, multi-registry portfolio management system to external trading platforms and exchanges for the first time.

This move extends the accessibility of Xpansiv’s advanced infrastructure, which processes over 1 billion asset transfers annually, to a broader ecosystem of stakeholders.

Among the partners exploring opportunities to leverage Xpansiv Connect are the Mercantile Exchange of Vietnam and insurers Oka and Kita. Additionally, existing partners such as BeZero Carbon, Sylvera, and the Commonwealth Bank of Australia are also supporting Xpansiv Connect.

Remarkably, the carbon marketplace developed by the Regional Voluntary Carbon Market Company (RVCMC) in the Kingdom of Saudi Arabia will implement Xpansiv Connect comprehensively. 

READ MORE: Xpansiv Chosen To Open Carbon Credit Exchange in Saudi Arabia

Leveraging this infrastructure, RVCMC aims to integrate its independent exchange matching engine with post-trade settlement and portfolio management system capabilities. The voluntary carbon credit market aims to become operational by the final quarter of 2024, facilitated by the implementation of Xpansiv Connect.

The post Xpansiv’s CBL VCM Saw Significant Block Trades, Xpansiv Connect™ Launched appeared first on Carbon Credits.

Arcadium Lithium PLC announced impressive first-quarter earnings, revealing an average realized pricing of over $20,000 per metric ton for its global lithium carbonate and hydroxide sales. 

CEO Paul Graves noted this exceeded seaborne lithium prices for the period, indicating positive market trends. Platts assessed the lithium carbonate CIF North Asia price at $14,600/t on May 7, the highest level since January 11. 

The company remains optimistic, with Graves highlighting encouraging signs in the lithium market and strong underlying demand fundamentals. He specifically noted that:

“Prices have increased from the cycle bottom and appear to have stabilized at levels that are notably higher than what we saw in the last downturn.”

Lithium Lift-Off: Arcadium’s Record-Breaking 1st Qtr

Arcadium’s performance is particularly noteworthy given its recent formation from the merger of Livent Corp. and Allkem Ltd. in January. However, it saw a decline in sales volumes due to production cuts at the Mt Cattline mine in Western Australia. 

Still, the company reported a net income of almost $20 million on sales of over $261 million in the first quarter, compared to $115 million income on sales of $253 million in the same period last year.

Arcadium is poised for significant expansion, with plans to complete new capacity constructions and expansions by 2025 and 2026. This effort aims to achieve a total production capacity of 170,000 metric tons annually across its global operations by 2026. 

Arcadium Lithium global operations

The expansions will increase nameplate production capability by around 95,000 metric tons per year on a lithium carbonate equivalent basis. This includes additions in Argentina, with 25,000 metric tons across the Fénix and Sal de Vida projects, and in Canada, with 70,000 metric tons across the Nemaska and James Bay projects. 

Recent milestones include commissioning a 10,000-metric-ton carbonate expansion at Fénix and a 25,000-metric-ton carbonate expansion at Salar de Olaroz in Argentina. 

Additionally, expansions are underway for hydroxide production. The company has a 5,000-metric-ton expansion at the Bessemer City plant in the US and a 15,000-metric-ton unit at the Zhejiang plant in China undergoing qualification. 

CEO Paul Graves expressed confidence in the company’s growth trajectory, emphasizing their strategic investments in attractive assets across market cycles.

Arcadium’s enthusiasm for lithium, which experts project more expansion in this electric metal’s production, is mirrored broadly in the industry. Statista report estimates the global lithium supply will rise to over 2 million metric tons by 2030. 

RELEVANT: Global Lithium Reserves and Resources Surge 52% in Q1 2024

Resolving Rifts, Reviving Production

In Australia, mining company Leo Lithium has finalized the sale of its remaining stake in the Goulamina lithium property in Mali to China’s Ganfeng Lithium Group, resolving a prolonged dispute with the local government and paving the way for the project to resume production this year. 

This agreement marks the second instance in May of an Australian miner resolving disputes with African governments. It resolved AVZ Minerals’ imminent delisting due to a property ownership dispute with the Democratic Republic of the Congo.

Under the deal, Ganfeng will acquire Leo Lithium’s 40% stake in the Goulamina project for US$342.7 million, pending approval from Leo Lithium shareholders and Chinese regulators. This equates to 43 Australian cents per Leo Lithium share. The company’s shares were suspended at 51 Australian cents in September 2023 amid the dispute. 

Additionally, Leo Lithium reached a US$60 million settlement with Mali’s junta government. This gives away its offtake right but securing a 1.5% gross revenue fee over 20 years from Ganfeng.

With the Goulamina project set to begin spodumene concentrate production in the 3rd quarter, Leo Lithium emphasizes adherence to Mali’s new mining code. This increases potential government project interest to 30%.

Optimism Amidst Market Challenges

While acknowledging shareholder concerns, industry analysts see the deal as the best outcome amid challenging sovereign and security risks. 

For instance, they suggest that despite current caution, the allure of potential returns may eventually prompt investors to reconsider African investments, especially if assets are priced attractively relative to cash flow.  

They also underscore the value for Leo Lithium shareholders and Ganfeng’s strategic investment in securing a substantial resource base for future industry growth. More remarkably, they remain optimistic about Australia’s position in lithium asset development, expecting renewed interest as lithium prices recover in the coming quarters and years ahead.

As Arcadium Lithium celebrates unprecedented earnings and Leo Lithium resolves disputes, the lithium market shows signs of robust growth. Analysts remain optimistic, foreseeing a positive trajectory for both lithium companies amidst evolving market conditions.

READ MORE: Why Lithium Prices are Plunging and What to Expect

The post Lithium Priced at Over $20,000 Per Ton Signals Market Optimism appeared first on Carbon Credits.

The surge in copper demand is driven by its pivotal role in renewable energy generation, electric vehicles, and grid infrastructure crucial for achieving net zero emissions. Market dynamics and global supply concerns have propelled copper prices upward, with top companies witnessing significant growth.

Copper Surge and Market Dynamics

One key event that influenced copper market dynamics was the closure of the Cobre Panama mine, a substantial global copper source. This closure shifted market expectations from surplus to deficit, contributing to the upward trajectory of copper prices. 

Additionally, in March, Chinese smelters decided to reduce output amid a concentrate shortage, further boosting prices.

Market analysts attribute this trend to a combination of speculative buying and genuine supply constraints, suggesting the potential for a sustained bullish market for copper. Many copper-focused equities are currently trading at or near their 52-week highs, indicating investor confidence in the sector’s future prospects.

While the rally in copper prices is encouraging for investors, analysts caution that the market needs to validate this trend beyond short-term momentum. The sector’s performance could significantly impact earnings, particularly if copper maintains its price above $4 per pound.

Copper’s significance in the transition to net zero emissions cannot be overstated. Its indispensable properties, including high electrical conductivity, thermal efficiency, and recyclability, make it vital for renewable energy systems, electric vehicles, and infrastructure development.

RELEVANT: Copper’s Price Breakout and Big Role in a Net Zero World

Renewable energy technologies, such as solar photovoltaics and wind turbines, require significant amounts of copper for efficient transmission and distribution of electricity. Electric vehicles also rely heavily on copper for components like motors, inverters, and electrical wiring.

Despite its critical role, the demand for copper is projected to outpace supply growth, leading to concerns about potential shortages. Addressing these challenges requires strategic investments in copper production and recycling to support the global shift toward sustainable energy sources and achieve net zero emissions goals.

Driving Decarbonization Efforts

Despite the availability of more cost-effective alternatives like aluminum, copper remains unparalleled in its efficiency and effectiveness for various applications critical for decarbonization efforts.

From household appliances to EVs and renewable energy infrastructure, copper is everywhere. The average car contains about 65 pounds (29 kilograms) of copper, while a typical household boasts over 400 pounds. 

However, it’s in the construction of advanced grid systems capable of managing electricity from decentralized renewable sources where copper truly shines. Solar and wind farms, covering vast areas, require more copper per unit of power generated compared to traditional power stations.

READ MORE: Copper and the Need to Meet the World’s Rewiring Demand for Energy Transition

To meet ambitious net zero targets by 2035, annual copper demand may need to double to 50 million metric tons, according to industry estimates. Even conservative projections anticipate a one-third increase in demand over the next decade, driven by substantial investments in decarbonization initiatives by both public and private sectors.

However, meeting this escalating demand poses significant challenges. While copper recycling is increasing, it’s unlikely to suffice, leaving primary mining as the primary source. Yet, expanding copper mining faces obstacles. 

Ore grades are declining, necessitating more extensive mining operations to yield the same output. Moreover, environmental concerns surrounding mining activities dampen investment enthusiasm.

Still, the surge in copper prices has heightened speculation about a potential supply crunch. Addressing an expected annual supply shortfall of 8 million tons over the next decade could require a staggering $150 billion investment, according to estimates. However, reaching such investment levels would likely necessitate copper prices to reach record highs.

Market experts further observed that while global demand for copper will rise, growth rates vary significantly across different regions. They underscored that regional macroeconomic conditions typically influence copper demand, as shown in the map below. 

Factors Affecting Copper Prices in 2024 and Beyond

The uncertainties surrounding China’s economic recovery, particularly the challenges in the property sector evidenced by the liquidation order against China Evergrande Group, pose a significant headwind for copper prices in 2024. 

Despite expectations for additional stimulus, the Chinese government opted for a growth target of 5%, emphasizing “high-quality development.” The International Monetary Fund (IMF) projects China’s economic growth to slow to 4.6% in 2024.

Chinese copper smelters have initiated production cuts to address raw material shortages, indicating potential supply constraints. Meanwhile, the US Federal Reserve’s monetary policy decisions are closely monitored, with expectations of rate cuts potentially impacting copper prices.

Analysts forecast an upward trajectory for copper prices in 2024 and beyond, driven by supply-demand imbalances, the US rate-cutting cycle, and increasing demand from the green energy sector.

BMI projects copper to average $8,800 per ton in 2024, while ANZ Research expects $8,950 per ton.

Looking ahead to 2025, analysts anticipate continued price growth, with BMI projecting $9,300 per ton, while ING forecasts around $9,050 per ton. Long-term copper price forecasts are uncertain but are expected to remain high due to increasing demand driven by the energy transition, particularly in EVs and renewable power.

As copper increasingly shapes global economic dynamics, nations are vying for access to limited future supplies, particularly considering that a significant portion of copper ore is mined in Latin America and Africa. This underscores the strategic importance of securing domestic or friendly sourcing and refining capabilities for essential metals like copper.

As renewable energy infrastructure and electric vehicle adoption continues to expand, strategic investments in copper production and recycling are crucial to meet growing demand and achieve net zero emissions goals.

The post Why Copper Prices are Surging and What to Expect appeared first on Carbon Credits.