Global Ammonia Market Update: Rising Blue Ammonia Prices, Mexico's Potential, and Project Headwinds
Key Ideas
- Blue ammonia prices surged in the US and Europe but remained flat in Asia due to supply constraints in the Middle East and North Africa.
- Mexico shows potential for low-cost green ammonia production, with Mexicali expected to have competitive renewable hydrogen and ammonia costs by 2030.
- Asia Pacific eagerly awaits results of low-carbon ammonia tenders in Japan and South Korea, with multiple alternatives like methanol and liquid hydrogen being considered as hydrogen carriers.
- Renewable ammonia projects faced setbacks with Yara International and Orsted canceling developments in Norway, the Netherlands, and Denmark, signaling challenges in the sector.
In September, Platts reported a rise in blue ammonia prices in the US and Europe, with the US Gulf prices surging 9% to $561/mt. Northwest Europe delivered prices also rose by 4%. Despite this increase, prices in Far East Asia remained relatively soft, climbing just 2% to $475/mt. Blue ammonia, made from fossil fuel-derived hydrogen with captured CO2 emissions, is gaining traction globally. The article highlights Mexico's potential in renewable-derived hydrogen production, emphasizing Mexicali's solar energy advantages. In Asia Pacific, low-carbon ammonia tenders in Japan and South Korea are awaited eagerly. The sector faces uncertainties as Yara International and Orsted have shelved renewable ammonia projects due to various reasons. While the renewable ammonia and eMethanol market is promising, challenges persist, with supply chain constraints and project cancellations reflecting the evolving landscape of the ammonia and hydrogen industry.
Topics
Projects
Renewable Energy
Energy Transition
Asia-Pacific
Ammonia Market
Mexico
Project Cancellations
Environmental Commitments
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