Yara International today published a video promoting Green Ammonia, which it states will be key to meeting its new corporate target of “making Yara carbon-neutral by 2050.”
The timing of this publication is highly appropriate because, also today, we announced the full program for our 16th annual Ammonia Energy Conference, which will feature a Keynote Speech from Rob Stevens of Yara’s Decarbonize division.
Our Decarbonize team is working towards making Yara carbon-neutral by 2050. This can be done by using carbon-neutral ammonia to produce Nitrate based fertilizer, a key step towards becoming the Crop Nutrition Company for the Future.
Yara International, LinkedIn post, 07/25/2019
The video, which is embedded below, has been promoted through Yara’s LinkedIn and YouTube accounts. With reference to Yara’s multiple pilot projects, the video states that “Yara is targeting to make Green Ammonia a proven production method within the next few years.”
This marketing effort follows closely after an arguably much more important communication: the announcement in mid-July that Yara had closed a $1.1 billion financing deal that ties its margin (size of interest payments) to the carbon intensity of its products.
This creates an alignment of purpose and profit, whereby doing the right thing for the environment – too often viewed by businesses as an unnecessary expense – drives down Yara’s corporate costs. The deal relates to a five-year Revolving Credit Facility (RCF) and is therefore tied to Yara’s targets for 2025.
The margin under the Facility will be adjusted based on Yara’s progress to meet its carbon intensity target by 2025:
- By introducing a sustainability link in its RCF, Yara highlights its commitment to reduce the carbon footprint of its fertilizer production activities
- The production of mineral fertilizer contributes to GHG emissions. Yara has already made large improvements in this area, and will continue to improve to meet its new carbon intensity target
- Yara’s carbon intensity target is to achieve a 10% reduction of greenhouse gas emissions per tonne of fertilizer produced (tCO2eq/tN) by 2025. Reaching this target will result in more than 2.2 MtCO2eq saved annually by 2025 (at constant 2018 volumes)
“Reducing greenhouse gas emission intensity is part of delivering on Yara’s mission of responsibly feeding the world and protecting the planet. By connecting financing to carbon footprint performance, we confirm a clear link between sustainability and profitability,” says Lars Røsæg, CFO of Yara International ASA.
Yara International press release, Yara signs new USD 1,100 million Revolving Credit Facility with margin linked to Carbon Intensity Target, 07/16/2019