The Ice Ammonia Outright — Argus Ammonia (AOA) northwest Europe cfr future contract has surpassed 25,000t traded, reaching 26,500t on 9 December.
The Ice AOA futures contract was launched on 16 January 2023 and settles against a calendar-month average of the daily Argus northwest Europe cfr duty free price.
The contract's block trade minimum threshold is five lots. One lot is the equivalent of 100t. Since the contract launched, all trades have gone through FIS brokers and cleared through Ice.
"Ammonia's role in the energy transition highlights its potential as a cornerstone of low-carbon energy solutions, and we are optimistic about the bright future for this product," FIS ammonia and fertilizer broker Kieran Walsh said.
Ammonia is gaining traction as a potential method of decarbonising energy sectors, by producing it using renewable energy sources or through carbon capture and storage techniques.
It can potentially be used directly as a fuel source in the marine sector, for co-firing in power generation or as a hydrogen carrier.
More than 3mn t of physical ammonia has been imported into northwest Europe so far in 2024, according to Argus line-up data.
Europe as a whole accounts for about a fifth of global ammonia imports, or about 4mn-5mn t/yr.
