| It’s Official: Ammonia Fuel Is Now a Commodity |
| By Alex Koyfman |
Over the last 48 hours, two more major puzzle pieces have fallen into place for the ammonia fuel story.
Yesterday, London-based S&P Global Platts, widely recognized as the leading independent provider of analytics and benchmark prices for the commodities and energy markets, announced that it has launched daily anhydrous ammonia cargo price assessments.
This is nothing less than an endorsement, by one of the world’s most respected institutions of financial data analysis, of ammonia fuel as a key player in the global economy of the near future.
Alan Hayes, head of Energy Transition Pricing at S&P Global Platts, explained the rationale behind his organization’s decision in no uncertain terms:…The ammonia market is set for significant growth as new projects come on stream in the coming years. One of ammonia’s key benefits is that at the point of combustion it does not release any carbon dioxide, so …
… into the existing anhydrous ammonia markets, but we intend to build on these initial launches to ensure that we reflect the role of ammonia as one of the emerging front-runners in the energy transition.
This news came just one day after Trafigura, a Geneva-based commodity trading giant with $147 billion in annual revenue, announced that it would be making major investments in low-carbon ammonia.
This Secret Was Never Going to Last
So what’s going on here? In the last two weeks, we’ve seen articles in mainstream publications as well as clear endorsements from two well-established and highly influential — not to mention completely unrelated — business organizations.
The answer is simple: The secret’s out. The mainstream market is starting to wake up.
Now, you might think that this is major vindication for a guy who’s been pounding the table about ammonia fuel since the beginning of the year, and you’d be right. It is.
It isn’t, however, the end. Not by a long shot.
Ammonia fuel has a potential to disrupt a $5 trillion chunk of the global energy market.
In the next couple decades, filling stations across the country could start pumping this fuel, and your car — and I mean the one that’s in your driveway right now, and not some high-tech new model that you’ll need to purchase — will be able to burn it in its existing engine block.
Only water vapor and nitrogen will come out of the tailpipe. Condensed, the emissions will be clean enough to drink.
Ammonia will propel cars, it will propel ships, and it will be used to store energy in much the same way as lithium battery arrays do today.
But the key to all of this is an ammonia production method that itself is carbon-neutral and efficient enough to make economic sense.
Without that, an ammonia-driven, carbon-neutral future just isn’t feasible, and the companies that perfect these technologies will be the biggest winners of this energy war.
Want the Biggest Gains? Find the Ground Floor
For risk-comfortable investors, perhaps the biggest opportunity in the entire green ammonia space is a company I’ve been writing about, also since the beginning of this year.
I found it before its stock was even listed under its current ticker, and I’ve watched it grow almost six-fold since the start of the year.
It’s still tiny — less than $50 million market capitalization in U.S. dollars.
Its target market is enormous, with literally trillions of dollars up for grabs in the next decade.
The company owns a patent to a novel, carbon-neutral ammonia production method, and it’s already in testing at a major Canadian university.
Share prices are stable today, but only because the story itself wasn’t headlining in the mainstream media.
Today, all of that is changing, as evidenced by the increased attention ammonia’s been getting in the news over the last couple weeks.
