Yara said a potential IPO would raise capital to accelerate YCA’s growth, better visualize the business’s value and support increased management focus at both firms.

“The decision to evaluate a potential IPO of Yara Clean Ammonia represents a natural next step as Yara executes its strategy to broaden its business model. YCA remains core to Yara’s strategy and Yara will continue to provide long-term backing to YCA as its majority owner and preferred partner,” said Yara president and CEO Svein Tore Holsether. “As the world’s largest ammonia distributor – backed by own production assets and logistics infrastructure – Yara and YCA are uniquely positioned to capture value and take a leading position in the clean ammonia market.”

The Norwegian group regards itself as the global leader in the merchant/traded ammonia market, with YCA holding more than a 20% share (as of 2020). Yara forecasts that from 2021 to 2030 traded ammonia will increase by about 6 million t, representing about a third of current volumes and an annual average growth rate of more than 12%.

It also expects the total ammonia market to grow at least threefold by 2050, supported by industries’ need to decarbonize. In particular, demand for ammonia as a low-carbon shipping fuel will grow exponentially from 2025, reaching 182 million t by 2050, which is nearly the same size as the total ammonia market in 2021 (184 million t).

Yara said its key immediate focus will be on blue ammonia (produced traditionally but using carbon capture) until economics improve for green ammonia (generated from water electrolysis).

Author: Elaine Burridge, Freelance Journalist