S&P Commodity Insights Introduces 'Blue Ammonia' Price Index

Former S&P Global Platts... Launches Daily Price Index

Reveals Price Difference Between Blue and Gray Ammonia

[Asia Economy Reporter Moon Chaeseok] The global energy information analysis company S&P Global Commodity Insights (formerly S&P Global Platts) announced on the 13th that it has introduced a price index for Blue Ammonia.

Commodity Insights provides not only the daily price of Blue Ammonia but also the price difference (premium) compared to Grey Ammonia through this index.

Blue Ammonia refers to ammonia produced from blue hydrogen, which is derived from grey hydrogen extracted from fossil fuels (natural gas) with carbon capture and storage (CCS) technology to reduce carbon emissions. The pricing system reflects the cost of CCS technology, which captures about 90% of carbon dioxide during production. The premium is added to the spot market price of Grey Ammonia based on cargoes from Northeast Asia, Northwest Europe, and the Middle East. Prices are quoted in US dollars per ton. However, only cargoes with anhydrous ammonia purity of 99.5% or higher by weight, moisture content of 0.5% or less, and oil content of 10 ppm or less are priced.

Commodity Insights plans to announce Blue Ammonia premiums for Northeast Asia, the Middle East, Northwest Europe, and the US Gulf Coast, judging that these regions are likely to serve as hubs in the global market. As of the 9th, the Blue Ammonia premium was lowest at $33.45 per ton in the US Gulf Coast and highest at $71.25 per ton in Northwest Europe. The Middle East and Northeast Asia recorded premiums of $46.45 per ton each. Reflecting these premiums, the Blue Ammonia price index showed $1,118.45 per ton for the Middle East, $1,201.45 for Northeast Asia, and $1,461.25 per ton for Northwest Europe. These prices have decreased by $186.70, $148.70, and $107 per ton respectively compared to the first announcement on the 22nd of last month.

The company expects this index to be useful in the Korean market. Korea imports most of its ammonia and plans to co-fire ammonia in more than half of its 43 coal-fired power plants?24 plants?by 2030. This indicates that demand for clean ammonia will inevitably increase. The index is expected to contribute to understanding Korea’s energy transition costs and investment decision-making.

Anton Perkov, an expert in hydrogen and ammonia price assessments for the Asia-Pacific and Middle East regions, said, "Blue Ammonia has the potential to replace fossil fuels and bunker oil and is recognized as an essential hydrogen carrier for energy transition, attracting attention not only in Korea but worldwide. The newly released Blue Ammonia price will contribute to increasing transparency in emerging markets and the blue hydrogen and ammonia value chains (supply chains)."

This content was produced with the assistance of AI translation services.