Yara International ASA
Thor Giæver
EVP & CFO
ABGSC Spotlight on Nordic Opportunities Conference Frankfurt, 14 May 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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Yara premium product portfolio uniquely positioned for decarbonization through low-carbon ammonia
Nitrogen market1 | |||
Global N-market dominated | Nitrates and NPK more than 50% of | ||
by commodities | W/C Europe market | ||
Ammonia | Other | Other | |
3% | 7% | ||
9% | |||
DAP/MAP | DAP/MAP | ||
3% | |||
7% | |||
Urea | Urea | ||
20% | |||
49% | |||
NPK | |||
NPK | 14% | ||
19% | |||
UAN |
Yara in Europe
Yara is the global leading nitrate &
NPK producer
CN 5%
Urea 21%
NPK 24%
UAN
Nitrates | 12% |
Nitrates | |
9% | |
42% | |
UAN | |
6% |
6%
Nitrates
43%
Global market: 109 mt | West /central Europe: 10.2 mt |
- Source: IFA 2021. Nitrogen volumes in nutrient tonnes
2) Yara Europe and Global Plants & Operational Excellence production capacity converted to tones of nitrogen
Yara's European2 fertilizer production capacity
(~4 mt nitrogen)
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Nitrates and compound NPKs are the only nitrogen fertilizers that can be produced without CO2
Fossil fuel
Urea
Ammonia
CO2
Urea (contains CO2)
CO2 is released upon spreading
Fossil fuel
Ammonia | Nitric acid | |
Nitrates
CO2
Nitrates
No CO2 needed
CCS | In blue ammonia, CO2 is captured and permanently |
stored (CCS) |
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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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Low-carbon ammonia will strengthen Yara's core nitrate upgrading margin
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
25% (=10 yr avg)
Nitrate value over urea
2.8 | ~280 |
4.0 | ~400 | |
6.3 | ~630 | |
Decarbonization opportunity (unique to nitrates and NPKs, as urea contains CO2)
Grey urea price (illustrative)
Grey 60%CCS 95%CCS
Calculated emissions for ammonia need, CO2 equivalents per year 3
Grey ammonia Ammonia 60% CCS Ammonia 95% CCS Green ammonia
Carbon tax, applies to all non-abatable nitrogen products, example urea Nitrogen production cost1 @27% N
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 is actively assessing its portfolio to ensure a fit-for- future footprint
- Yara has a future optionality to consider closing some EU ammonia production capacity, with our terminal structure in Europe representing a strong competitive advantage
- Flexibility of ammonia position demonstrated in 2022
- Current value of ammonia assets in Europe is limited (0.5 bn USD3)
Illustration: Yara's ammonia position in Europe1,2
Mt ammonia | Mt CO2 |
5.8 | 10 |
4.8 | |
Production Consumption | CO2 |
capacity | emissions |
1) Theoretical calculation of ammonia consumption based on finished product production capacities from Yara.com. Sales of ammonia as a product would come in addition.
2) Scope 1+2 CO2 emissions based on full capacity utilization and 2 t CO2/tonne ammonia8
3) Carrying amount for Yara's ammonia production assets in Europe, page 149 of Yara's Integrated Report 2022
1Q EBITDA reflects increased deliveries and lower prices
1Q 2024
EBITDA1 down 11% from 1Q23 mainly due to lower prices
Total deliveries up 12% and European deliveries up 37% from 1Q23
Reduced GHG emission intensity with implementation of key projects
Healthy demand growth and limited capacity additions indicate tightening supply- demand balance longer term
1) For definition and reconciliation see Alternative Performance Measures (APM) section in the 1Q report on pages 22-29 | 9 |
Reduced GHG emission intensity with successful implementation of key projects and continued focus on operational excellence
GHG emission intensity improvement continued in the first quarter
L12M, tCO2e/tN
On track to achieve the 2025 target
3.0 3.1
-4%
3.1 3.1
3.0
2.9
2.7
- Total project portfolio to reach the target: 90 projects with an estimated investment of 200 MUSD
- Majority of emission reductions and capex successfully executed; 65 projects implemented per end 1Q
- Remaining 25 minor projects in the execution phase
- Continued focus on operational excellence improving plant reliability and energy efficiency
- Increasing sourcing of lower-emission electricity and ammonia
2019 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2025 |
target |
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Yara International ASA published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 13:37:05 UTC.