Argus launches low-carbon ammonia index to support offtake

Global energy and commodity price reporting agency Argus has launched an index to support trading of blue hydrogen-based projects distributed to Asian markets.

The Argus Japan Korea Low-Carbon Ammonia Benchmark (JKLAB) has been designed for the mass-balanced all-in-cost of blue hydrogen, liquid ammonia produced on the US Gulf Coast and delivered to northeast Asian countries.

H2 View understands this cost-based approach differs from assessing spot prices and is designed specifically to assist offtake negotiations. Northeast Asian power generation companies have successfully trialled ammonia and now intends to roll our commercial co-firing at an initial rate of 20% and then raise coal-ammonia blending test rates to 50%.

The index is expected to offer buyers in Japan and South Korea, and producers in the US, a common reference to structure offtake agreements, enabling them to manage input cost volatility for long-term supply contracts without relying on complex instruments.

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