Jun 14, 2016

Massive growth forecast for global wave and tidal energy market

2 min
A new market report has predicted that the global wave and tida...

A new market report has predicted that the global wave and tidal energy market could be worth US $11.3 billion by 2024, marking a significant increase from its valuation of $497 million in 2014.

Transparency Market Research’s analysis of the wave and tidal energy sector concluded that the ocean may prove to be one of the world’s largest reserves of sustainable energy.

Currently, the 254 MW capacity Sihwa Lake Tidal Power Station in South Korea is the largest tidal power plant in the world. Though underdeveloped at present, the report forecasts major growth in terms of installed capacity and investments in both the tidal and wave energy sectors.

The report states: “Currently, only tidal barrages are capable of generating returns on investments through the sale of electricity. Tidal stream and wave power plants are still not capable of generating power at grid parity levels. Commercialisation of technology is the need of the hour for this sector. Otherwise it would be difficult for project developers to sign long term power sale contracts.”

More than 200 companies are said to be operating in the sector today, most of whom are involved in the development of energy converter technology.

The report also reassures potential investors that large-scale commercial array deployments of wave and tidal power plants will likely be followed by massive cost reductions.

Major developments in wave and tidal stream plants are expected to take place in Europe, though South Korea is estimated to grow the fastest where tidal barrage operations are concerned.

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Jun 7, 2021

Trafigura and Yara International explore clean ammonia usage

Dominic Ellis
2 min
Commodity trading company Trafigura and Yara International sign MoU to explore developing ammonia as a clean fuel in shipping

Independent commodity trading company Trafigura and Yara International have signed an MoU to explore developing ammonia as a clean fuel in shipping and ammonia fuel infrastructure.

Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050. 

How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.

Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:

  • The supply of clean ammonia by Yara to Trafigura Group companies
  • Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
  • Development of new clean ammonia assets including marine fuel infrastructure and market opportunities

Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.  

There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.

Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.

Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.

Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.

It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.

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