S&P Global Commodity Insights Launches New Platts Renewable 'Green' Ammonia Prices

Rhea-AI Summary

S&P Global Commodity Insights has launched a suite of Platts ammonia price assessments based on renewable power pathways as of December 1, 2022. This initiative complements prior 'blue ammonia' assessments, enhancing transparency in hydrogen markets. The company anticipates that low-carbon ammonia could replace 57% of the global conventional ammonia market by 2050, with various applications including shipping fuel. The assessments will be published in the Platts Hydrogen Daily report, reflecting prices in key import regions.

Positive

• Launch of renewable ammonia price assessments enhances market transparency.
• Potential to capture 57% of the conventional ammonia market by 2050.
• Supports diverse applications such as shipping fuel and energy generation.

Negative

• None.

Complements previously launched 'blue ammonia' prices to advance the clean energy transition

LONDON and NEW YORK and SINGAPORE, Dec. 1, 2022 /PRNewswire/ -- S&P Global Commodity Insights, the leading independent provider of information, analytics and benchmark prices for the commodities and energy markets, today announced that on December 1, 2022, it will launch a suite of Platts ammonia price assessments based on renewable power production pathways. These new price assessments complement previously launched 'blue ammonia' assessments to further enhance transparency in global hydrogen markets.

Mario Perez, Managing Editor, Global Hydrogen at S&P Global Commodity Insights said, "This latest addition to the Platts low carbon ammonia price assessment offering will provide valuable insight into trade flows of low carbon ammonia produced from renewable power. What's more, by focusing on renewable power production pathways, market participants can now look to this latest suite of Platts assessments to begin to differentiate ammonia based on its carbon intensity when compared to both the existing ammonia market and the 'blue ammonia' option.  

S&P Global Commodity Insights expects low-carbon ammonia, which is derived from hydrogen produced by electrolysis of water using renewable power, to displace 57% of the global conventional ammonia market by 2050. In addition to conventional markets switching to low carbon ammonia, there are projects being developed to use low carbon ammonia as a shipping fuel and in power generation. Ammonia is also seen as one of the key transport vectors for transporting large amounts of low carbon hydrogen to import centers around the world.

These new assessments will reflect values into the prime low carbon ammonia import regions of Northwest Europe and Far East Asia. The new assessments will be in $ per metric ton and $ per MMBtu for the locations below:

Renewable Power derived ammonia production delivered to Far East Asia	West Coast Canada to Far East Middle East to Far East Australia to Far East
Renewable Power derived ammonia production delivered to Northwest Europe	US Gulf Coast to Northwest Europe Middle East to Northwest Europe East Coast Canada to Northwest Europe

The prices will be published in the recently launched Platts Hydrogen Daily report, complementing the 'blue ammonia' prices which represent ammonia production with 90% of its CO2 emissions captured and sequestrated. Platts Hydrogen Daily is the first daily global hydrogen price, news and insights report from an independent price reporting agency. It includes the latest analyses of market fundamentals, trends and factors driving global hydrogen markets, as well as prices from associated low carbon ammonia markets.

Media Contacts:
Global/EMEA: Paul Sandell, +44 7816 180039, paul.sandell@spglobal.com
Americas: Kathleen Tanzy, + 1917 331 4607, kathleen.tanzy@spglobal.com
Asia: Melissa Tan, + 65 68189 7569, melissa.tan@spglobal.com 

About S&P Global Commodity Insights
At S&P Global Commodity Insights, our complete view of global energy and commodity markets enables our customers to make decisions with conviction and create long-term, sustainable value. 

We are a trusted connector that brings together thought leaders, market participants, governments, and regulators and we create solutions that lead to progress. Vital to navigating commodity markets, our coverage includes oil and gas, power, chemicals, metals, agriculture, shipping and energy transition. Platts^® products and services, including the most significant benchmark price assessments in the physical commodity markets, are offered through S&P Global Commodity Insights. 

S&P Global Commodity Insights is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information visit https://www.spglobal.com/commodityinsights.

 

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SOURCE S&P Global Commodity Insights

FAQ

What is the significance of S&P Global's renewable ammonia price assessments?

The assessments enhance market transparency and support the transition to low-carbon energy.

When were the Platts ammonia price assessments launched?

They were launched on December 1, 2022.

What market share does S&P Global expect low-carbon ammonia to capture by 2050?

S&P Global expects low-carbon ammonia to displace 57% of the global conventional ammonia market by 2050.

Where will the new ammonia price assessments be published?

The assessments will be published in the Platts Hydrogen Daily report.

What applications are being explored for low-carbon ammonia?

Low-carbon ammonia is being explored as a shipping fuel and for power generation.