Yara invests in CCS in Sluiskil and signs binding CO2 transport and storage agreement with Northern

Nov 20 2023


Yara aims to reduce its annual CO2 emissions by 800,000 tons from the ammonia production at Yara Sluiskil.

Yara International, a leading global ammonia player, has signed a binding commercial agreement with Northern Lights for the permanent storage of approximately 800,000 tons of CO2 per year.

This project forms part of Yara’s ongoing strategic transition to decarbonise and future-proof its core production assets as Yara Sluiskil is one of the world’s largest ammonia and mineral fertiliser plants. In addition to this project, Yara is evaluating potential large-scale blue ammonia production projects with CCS in the US. 

Coupling these investments with its leading global ammonia position, Yara can profitably decarbonise its premium product operations in Europe while also diversifying its energy position. To allocate capital to this transition, Yara is considering a number of options including a minority divestment of YCA, asset divestments and other available funding sources.

"Clean ammonia can decarbonize hard-to-abate sectors like shipping, chemical production, and power production. It will enable the hydrogen economy, and the time to start using clean ammonia and hydrogen to decarbonize Europe is now," said Magnus Ankarstrand, President of Yara Clean Ammonia.

 

 

"This is a milestone for decarbonizing hard-to-abate industry in Europe and for Yara it’s an important step towards decarbonizing our ammonia production, product lines and the food value chain at large," said Svein Tore Holsether, CEO of Yara International.

Cutting 800,000 tons CO2 in Yara Sluiskil corresponds to 0.5% of the total annual emissions (2022) in the Netherlands. Over the next 15-years Yara will remove approximately 12 million tons of CO2 from its production in Sluiskil.

"Yara Sluiskil is showing the way forward for European industry by taking another step on the decarbonization journey. Since 1990 Yara Sluiskil has cut 3.4 million tons of CO2 equivalents per year from its ammonia and fertilizer production, whilst at the same time almost doubling its production. Now we continue by reducing one of the biggest emission points in the Netherlands," said Michael Schlaug, VP Yara Netherlands.

Decarbonized future for food-production and shipping

CCS is key to decarbonise hard-to-abate industries in Europe

The world is closing in on 2030 and action is required to meet the objectives of the Paris Agreement. UN Secretary General Guterres stated in an address to the UN General Assembly on 20th September 2023: “We can – and we must turn up the tempo”.

On 27th October 2022 in Oslo, EU Commissioner Simson expressed her conviction “that CCUS has incredible potential in our race to reach climate neutrality”. CCS provides a decarbonisation solution to reduce climate emissions. The agreement between Yara and Northern Lights will kickstart the commercial market for CCS in Europe.

CCS is a cost-efficient decarbonisation solution that is compatible with existing European production infrastructure, especially in the case of ammonia and fertilizer production. We need to use all technologies at our disposal to address the climate emergency. European industries are eagerly awaiting the EU’s CCUS strategy, to be announced early next year. To realize the full potential of this decarbonization route, CCS projects need to be supported by a dedicated regulatory environment for CO2 transport and storage infrastructure.

"To succeed with the green transition, we need strong partnerships and support from governments and the EU. CCS is an important part of the solution. Together we can significantly reduce GHG emissions and take us further step closer to transform industry and reduce emissions," said Holsether, CEO Yara International.

Summary of the agreement:

  • Yara Sluiskil will capture approximately 800,000 tons of CO2 from the process gas from its ammonia production each year
  • Yara Sluiskil will expand its CO2 liquification capacity to liquify 12 million tons of CO2 over the next 15 years with an estimated capex of approximately EUR 200 million
  • Northern Lights will ship liquified carbon dioxide from Yara Sluiskil in the Netherlands to Øygarden in Norway
  • The liquefied CO2 will initially be stored in onshore tanks at Øygarden, prior to injection into an offshore saline aquifer via pipeline for permanent and safe storage, 2,600 meters below the seabed
  • Operations will start in 2025 and continue for 15 years

Yara International
Northern Lights


Previous: ADNOC and Santos to pursue Global CCS Platform

Next: Carbon capture study reveals major opportunity for Western Australia


Issue 98 - Mar - Apr 2024

CCUS in the U.S.: A New U.S. Industrial Backbone - Exploring Regional CCUS Hubs .. National Carbon Capture Center tops 150,000 testing hours .. Baker Hughes’ most interesting tech Morecambe Net Zero set to be one of UK and Europe’s largest CO2 store.....