S&P Global Commodity Insights, the leading independent provider of information, analysis and benchmark prices for the commodities and energy markets, will begin publishing daily values for low-carbon (“blue”) ammonia and premiums for blue ammonia versus conventional (“gray”) ammonia, effective April 22, 2022. This augments the pre-existing suite of Platts anhydrous ammonia cargo price assessments launched in October 2021.
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Anton Ferkov, Pricing Specialist for Hydrogen & Ammonia in Asia-Pacific and the Middle East, S&P Global Commodity Insights, said: “In addition to its potential use in decarbonizing fuel for power generation and bunker fuel, blue ammonia is recognized as a crucial carrier for hydrogen within the energy transition space. These new Platts blue ammonia price assessments will bring increased transparency to a developing market and build out the low-carbon hydrogen and ammonia value chain.”
S&P Global Commodity Insights will publish blue ammonia premiums for locations that have a high potential to become low carbon ammonia hubs as global markets emerge. Low carbon ammonia hubs are expected to emerge in the regions where conventional ammonia markets already exist: Far East Asia, the Middle East, Northwest Europe, and US Gulf Coast.
In addition to cost of production premiums, Platts blue ammonia price assessments will reflect delivered cargo prices on a cost and freight (CFR) basis into Far East Asia and Northwest Europe, and cargo prices on a free on board (FOB) basis loaded in the Middle East, and will reflect established production technology, trade routes and uses. These prices will be published, in US dollars per metric ton. For consideration in the assessment process, cargoes must have a minimum purity of 99.5% of anhydrous ammonia by weight, a maximum water content of 0.5% by weight, and a maximum oil content of 10 ppm by weight.
The Platts blue ammonia price assessments will be calculated by adding the blue ammonia premiums to the existing conventional grey ammonia assessments:
- Platts Blue Ammonia FOB Middle East is equal to the Blue Ammonia FOB Middle East premium plus the conventional FOB Middle East ammonia price assessment. The cargo size will be 15,000-40,000 metric tons loaded 15-30 days forward from the date of publication.
- Platts Blue Ammonia CFR Far East is equal to the Blue Ammonia CFR Far East Asia premium plus the conventional CFR Far East Asia ammonia price assessment. The cargo size will be 20,000-40,000 metric tons to be delivered 15-45 days forward from the date of publication.
- Platts Blue Ammonia CFR Northwest Europe is equal to the Blue Ammonia CFR Northwest Europe premium is added to the conventional CFR Northwest Europe ammonia assessment. The cargo size of 20,000-25,000 metric tons to be delivered 15-45 days forward from the date of publication.