Yara International has revealed plans to produce 500,000 tonnes per year of green ammonia at a plant in Norway.
The Norwegian fertiliser producer and shipowner is aiming to "power" emission-free shipping fuels at the facility in Porsgrunn.
Hydrogen constitutes 17.65% of the mass of ammonia, which does not require cooling to extreme temperatures and has a higher energy density than liquid hydrogen, making it more efficient to transport and store.
Yara expects the ammonia market to grow by 60% over the next two decades.
It will fully electrify the Porsgrunn plant, potentially cutting 800,000 tonnes of CO2 year, equivalent to the emissions from 300,000 cars.
'Most promising'
"Ammonia is the most promising hydrogen carrier and zero-carbon shipping fuel, and Yara is the global ammonia champion; a leader within production, logistics and trade," said chief executive Svein Tore Holsether.
"I am excited to announce that a full-scale green ammonia project is possible in Norway, where we can fully electrify our Porsgrunn ammonia plant."
Yara is seeking partners and government support. If funding and regulations are in place, the plant could be up and running in 2026.
The company is also pioneering autonomous shipping and took delivery of the world's first unmanned cargo vessel last month.
Norwegian shipyard Vard Brattvag has handed over the 3,200-dwt, 120-teu coastal vessel Yara Birkeland.
The ship will now undergo testing for container loading and stability, before it sails to a port and test area in Horten for further preparations for unmanned operation.
Total group capital expenditure scheduled for 2020 and 2021 is $2.2bn, with $1.2bn earmarked from 2022 on.
