YARA INTERNATIONAL ASA Yara International ASA
Magnus Krogh Ankarstrand EVP Corporate Development
Pareto Investor Conference, 18 April 2024
Global mission, global presence
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Yara strategy focused on profitable decarbonization, strengthening ammonia and crop nutrition core
Key global trends
Climate emergency and
decarbonization
Geopolitical shocks and
challenging energy position in Europe
Global food system
transformation
Strategic response
Decarbonize and diversify energy position through profitable growth in low-carbonammonia and premium low-carbonfertilizers
Improve future competitiveness of ammonia and crop nutrition production through more favorable and diversified energy cost position
Establish long-term growth platform within new business areas through selective organic growth supported by strategic partnerships
Key projects and priorities
- Sluiskil CCS: FID confirmed, estimated start-up 2026
- 2024 roll-out of fertilizers produced in
Porsgrunn with green ammonia - Assessment of asset footprint
- New commercial offerings, including expanding organic and biostimulant portfolio
- Blue ammonia projects in US: continue to mature towards targeted FID 2H2025
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Ammonia needs to be decarbonized to reach Yara's ambition of carbon neutrality by 2050
Significant emission reductions already achieved - next step decarbonization of ammonia
- Decarbonization journey has already started with significant emission reductions since 2005
- Implemented projects has provided significantly lower EU ETS costs for Yara
- "Easier-to-implement-projects"mainly concluded, next step requires us to decarbonize ammonia
- Ammonia is the nitrogen source for all nitrogen products and the main source of emissions
- Decarbonization needs to be profitable and follow the same decision process as other investments
- Stable and predictable government incentives and regulation supports project returns
1) As presented in Capital Markets Day June 2023
Our ambition is to be carbon neutral by 2050
-42% | MtCO2 per year | ||||||
13.5 | |||||||
2 | -30% | ||||||
1 & | 32 | Equivalent to | 2.5 | -100% | |||
Scope | 3.1 | ||||||
emissions of a | |||||||
small country | 18.5 | ||||||
12.9 | |||||||
0.0 | |||||||
2005 | Catalyst | 2019 | 2025 | Step | 2030 | 2050 | |
& Energy | Planned | change | |||||
Efficency | reductions1 | projects | |||||
4 |
Low carbon ammonia for a clean energy future
Low carbon ammonia production processes
ATR/SMR | Haber-Bosch | ||
+ CCS1 | |||
Natural | Low | Low | |
CCS1 | carbon | carbon | |
gas | |||
Hydrogen | Ammonia | ||
Electrolysis | Haber-Bosch | ||
Electrolysis | Renewable | Green | Green |
energy + | Hydrogen | Ammonia | |
H2O | |||
End-use applications
Fertilizer
Industrial applications
Power
Shipping fuel
1) ATR: Autothermal Reforming, SMR: Steam Methane Reforming, CCS: Carbon Capture and Storage | 5 |
Our leading ammonia position presents significant opportunities
Global #1 in traded ammonia with >20% market share1 | Yara Clean Ammonia competitive advantages |
Yara Clean Ammonia global terminal and storage infrastructure
Integration across the value chain
Reliable, asset-backed supply and attractive offtaker
Deep industry know-how, market insight and track record of safe handling
Specialized fleet of 14 ships
Global network of 18 terminals located in key locations, with connection to bunkering hubs
Scalable platform and business model
1) Based on 2021 numbers | 6 |
Yara will strengthen its core nitrate upgrading margin through decarbonization of ammonia
Yara can utilize its flexible ammonia position to reduce carbon
emissions and reduce carbon tax exposure
Scenarios assuming 3.5 mt total | Yara's Europe annual carbon tax in 20344 | |||||||||||
ammonia needed (for illustration)2 | @CO2 cost of 100USD/t, in MUSD | |||||||||||
Yara will strengthen its core nitrate upgrading margin through decarbonization opportunity unique to nitrates
Nitrate upgrading margin scenarios in 20344 assuming ammonia@500/t and CO2@100USD/t
1) | Other production cost and freight disregarded | 3) In CO2 equivalents per year. Carbon content assumptions for grey: 1.8tCO2/t NH3, CCS 60%: | 7 |
2) | Scenarios for illustration. European ammonia need for fertilizers appx 3.5mt in total (including captive) - 3 different possible | 0,6CO2/tNH3 and CCS 95%: 0,03 CO2/t NH3 | |
scenarios; 100% Grey; 50%grey+ 30% CCS 60%+20% CCS 95%; 30% grey + 30% CCS 60% + 40% CCS 95% | 4) Assuming carbon cost of 100USD per tonne of CO2 and CBAM fully phased in |
Yara's premium production capacity is already based on ammonia imports
Assets | Ammonia source | Nitrate and NPK capacity |
Sluiskil
Porsgrunn
Own production (flexible)
Fully flexible on own production vs import
Glomfjord
Tertre
Glomfjord
Own production (flexible)
Import
Porsgrunn
Silinjarvi Uusikaupunki
Ambes
Import
Sluiskil
Rostock
Uusikapunki
Ravenna
Montoir
Siilinjarvi
Rostock
Import
Import
Import
Import
Import
Tertre
Montoir
Ambés
Ravenna
Own ammonia | Plant operating on imported |
production | ammonia |
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Yara is playing a leading role in tackling the food crisis and climate change while enabling the energy transition
Focused strategy
Resilient and flexible business model
Attractive prospects with clear link to value creation, through three strategic pillars:
- Climate Neutrality
- Regenerative Agriculture
- Prosperity
Profitable growth
Building on Yara's leading ammonia position to serve new market segments and profitably decarbonize own production
Attractive US ammonia investments, complementary to Yara's European footprint
Strong shareholder returns
Strong capital discipline maintained - focused capital allocation and further portfolio optimization
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Yara International ASA published this content on 18 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 April 2024 13:54:02 UTC.
