Argus, a renowned energy and commodity price reporting agency, has unveiled the Japan Korea Low-Carbon Ammonia Benchmark (JKLAB) to streamline the trading of low-carbon hydrogen products distributed in Northeast Asia. This benchmark is centered on determining the cost of low-carbon, liquid ammonia manufactured in the U.S. Gulf coast and shipped to South Korea or Japan on a cfr basis. Unlike traditional spot price assessments, JKLAB adopts a cost-based methodology specifically tailored to facilitate offtake negotiations. The index is derived from autothermal reformer ammonia production using Henry Hub-priced natural gas, coupled with carbon capture and storage, with a minimum cargo size of 20,000t. By aligning with Japan and South Korea's carbon intensity thresholds, this production route ensures compliance with environmental standards. Moreover, the integration of hydrogen with nitrogen to create liquid ammonia is highlighted as a key strategy for transporting large hydrogen volumes across oceans. Northeast Asian power generation firms have already trialed the substitution of coal with ammonia, with plans to increase commercial co-firing rates significantly. The lack of a standardized market reference for low-carbon ammonia has posed challenges in negotiating offtake agreements, necessitating the establishment of JKLAB to provide a common platform for buyers and producers to structure long-term supply contracts efficiently. Adrian Binks, Argus' Chairman and Chief Executive, emphasized the importance of JKLAB in providing a clear market signal amid the growing emphasis on reducing greenhouse gas emissions in Northeast Asia. The introduction of JKLAB is set to revolutionize the energy trading landscape by offering a consolidated reference point for stakeholders, thereby mitigating risks associated with pricing fluctuations and enhancing the sustainability of energy markets.