Welcome to this webcast from Yara International's headquarters in Oslo regarding a potential IPO of Yara Clean Ammonia. To present and give you more information about this is CEO of Yara International, Mr. Svein Tore Holsether, and the President of Yara Clean Ammonia, Mr. Magnus Krogh Ankarstrand. Before I leave the floor to them, let me just mention that there will be an audio conference call after the presentation at 1:30 Central European time. Practical information about the call is available on our website. Now, Mr. Svein Tore Holsether, please, the floor is yours.
Thank you very much, Hilde. Good morning, good afternoon, and good evening to all of you, and thanks for joining this webcast. Earlier this morning, we announced that Yara is considering a potential IPO of a minority stake in Yara Clean Ammonia on the Oslo Stock Exchange. While the final decision to list Yara Clean Ammonia will be made in due course, we're really excited about the potentially inviting minority investors to take part in Yara Clean Ammonia's growth story. What we see in the potential IPO is that it would raise capital to accelerate the growth of the business. It will visualize the value of the business and also support increased management focus, both in Yara Clean Ammonia and in Yara.
Today's decision to evaluate a potential IPO is a natural next step based on the important work that we have done over the last couple of years. More specifically, as you recall from our ESG investor seminar back in December 2020, we set out a strategic ambition to enable the hydrogen economy. In that, Yara Clean Ammonia, or Clean Ammonia, will play a crucial role. Last year, Yara Clean Ammonia was established as a separate segment and unit in order to sharpen our focus on clean ammonia. Subsequently, we communicated that Yara Clean Ammonia would be set up as a separate legal entity within Yara, with Yara maintaining a majority ownership.
Magnus is going to come back to Yara Clean Ammonia's business strategy in his presentation later. Let me highlight a few key points that make us very excited about this business. At the core of Yara Clean Ammonia is its leading midstream ammonia position with more than 20% market share in the merchant ammonia market, covering operation from all the way from sourcing to sales. Fundamentally, we believe that clean ammonia represents a major growth opportunity as it is expected to play a crucial role in the decarbonization of key industries.
As the world's largest ammonia distributor, backed by own production assets and logistics infrastructure, Yara and Yara Clean Ammonia are uniquely positioned to take a leading place in the clean ammonia market. Let me conclude by reiterating that Yara Clean Ammonia remains core to Yara's strategy and that Yara will continue to provide long-term backing to Yara Clean Ammonia as its majority owner and preferred partner. I'm now pleased to hand over to Magnus, who will provide an introduction to Yara Clean Ammonia and its strategy. Further information will be released at a later stage if the IPO process moves forward. Magnus has 20 years of strategic, commercial, and operational leadership experience.
He's been in Yara for almost 10 years and has previously been head of strategy, president of Yara North America, and now CEO of Yara Clean Ammonia. Over to you, Magnus.
Thank you, Svein Tore. I'm very excited to be here today to present Yara Clean Ammonia and take the first step in the journey of evaluating a potential IPO for this unit. We worked on this now for quite a while. We have a strong team working very hard to put this forward, and we're extremely excited about this opportunity and what we think it can bring both to Yara but also to potential new minority investors.
Before I start, just draw the attention to the disclaimer, which is in the written material, and that everybody takes due note of that. What is it that we are presenting today? Yara Clean Ammonia, in our opinion, represents a unique opportunity to take part in the green transition and builds on a platform of an existing running business, which is the ammonia distribution business in Yara, the world's largest ammonia distribution, 20% market share and asset backed by Yara's production footprint. Also importantly, as the exclusive offtaker supplier from Yara's plants and to Yara's consuming plants. This generates a significant business, 4.2 million tons, and a running EBITDA and running cash flow. The backdrop for Yara Clean Ammonia is clear to everyone.
Greenhouse gas emissions need to go down, and the world has decided to do so. However, there are several hard-to-abate sectors that struggle with this, and ammonia is a potential solution for many of these, and it's increasingly recognized as a solution to decarbonize the hard-to-abate industries, such as the power production segment in some instances, and particularly shipping, but also agriculture. That gives us four different avenues or four different segments to play in. First one being the one we know the best as Yara, which is the agricultural segment, with a clear need to decarbonize, also within green fertilizer.
It is shipping fuel where ammonia represents a significant opportunity and a very good alternative, particularly for long-distance shipping with its high energy density and its features that are particularly suitable compared to hydrogen for long-distance shipping. But also, power generation using ammonia as a fuel for producing electricity is also a very relevant segment in some countries, particularly Japan, which has very outspoken targets in this regard. Longer-term also as a hydrogen carrier, ammonia has a significant potential. Looking into the need for clean fuel, particularly taking a 2050 view, the numbers are staggering. Although a lot of things can happen between now and 2050, we do see a lot of drivers in all four segments that can contribute to significant growth in this segment.
Agriculture and industrial, which are existing segments representing a big opportunity, shipping fuel, potentially representing a massive opportunity, when that comes in place. Finally, power generation with, as here, estimated 20 million tons, which is what it could look like in 2050, in itself represents more than a doubling of the current traded ammonia. These new segments also represent a significant shift in the industry, we believe. Today, a lot of the ammonia produced is consumed at the site and only a small portion, around 20 million tons, is being carried on deep sea and shipped, and distributed.
Going forward with increased demand and new segments likely to want to consume ammonia in different places where it is produced, the midstream segment is expected, in our expectation, to increase significantly, and this puts Yara Clean Ammonia in a pole position to take part of that growth based on our existing asset base. Today, Yara Clean Ammonia is a clear market leader, and this provides us with a very unique starting point to take part of the growth that we believe will come within the ammonia segments. We are a reliable and asset-backed supplier, and the asset backing here and the link to Yara is incredibly important in order to be a credible player in this game.
We have a long experience dealing with ammonia, and also constructing ammonia plants, operating ammonia plants, and distributing ammonia from all aspects, including safety, is something that we've done for more than 100 years. In addition, we have a very strong midstream segment consisting of our fleet of ammonia vessels, but also Yara's worldwide terminal structure, which puts us in a pole position to where ammonia is likely to be consumed, both in terms of the East Asian market, but in particular also for bunker, bunkering points worldwide. Finally, our existing platform and business model is something that we believe very, very strongly can be scaled, and take part of this as the market grows.
It runs on a business that is already there today, which provides a stable revenue and cash flow, for the company, and that can contribute to fueling the future growth. Our global system, as represented here, is the foundation of this, opportunity. Yara's production system, both including our net exporting ammonia plants, particularly represented by our assets in North America, and Trinidad, as well as our consuming plants in Europe, but also our Asian system, based on our production assets in Australia, represents an excellent starting point to be a credible supplier of clean ammonia, worldwide. The molecules we already have, but of course, the important task, of the value creation and what we want to do going forward, is to create new projects.
The growth potential from upstream projects, we believe, is significant. We have, over the last year or so, developed a strong portfolio of projects that we believe can play a vital role in this. We are focused on blue ammonia as an area where we believe we can scale early, where there are places in the world where we can build and go and take part in ammonia projects that can scale relatively quickly. We're also part of several green ammonia projects with our two first pilot projects already being ready and moving into construction.
The most important one being our 24 MW project in Porsgrunn, where we broke ground a couple of months ago, and where we are clearly moving towards getting the first green ammonia molecules into the market. Although we believe green ammonia definitely will have an important role to play going forward, we also very much believe in blue ammonia as an important solution to cover the world's need for clean fuels fast.
In addition, of course, this will play a vital part in not only reducing Yara's greenhouse gas emissions, but we can also provide to our customers a significant reduction of greenhouse gases with the portfolio that we're looking at and with the distribution business and what we're looking at serving both within shipping segment as well as power production and not least agriculture and fertilizer. Our business model is proven, and the way we've run this business model within Yara for a long time represents very strong earnings and a stable platform of profitability based on the scale and the flexibility that our ammonia business gives today.
This scale, and not least the resilience, has been tested quite heavily over the last six months, and we're pleased to see that our business model is resilient, even in the testing times that we're now in with significant volatility, a tragic war in Ukraine, which, of course, has a significant impact on our market. Over time and over the last three years, we've had solid earnings with a stable floor of an EBITDA of $113 million, and we believe that this represents a significant growth platform going forward. To conclude, we believe that Yara Clean Ammonia, with our pole position in the midstream segment, but also backed by the asset footprint of Yara, represents a significant opportunity to take part in the growth that we believe will come in this market.
We believe that our project experience and our operational experience gives us a head start in this market, and that we can use this to develop robust upstream projects to further feed the volume needs in this business. We believe that our current business model is profitable and scalable and represents a significant growth opportunity. Finally, we're very proud of our experienced and performance-oriented organization, both what's within Yara Clean Ammonia today, but not least what support we have from both the asset base of Yara, but not least the people resources of Yara.
We do believe that with this move, we can take part in a significant growth venture coming towards us, and at least that we will be able to grow this beyond what has been the traditional core of Yara. With that, I will hand the word back to Hilde, who'll give a little bit more of practical information. Thank you.
Before we end this webcast, let me just remind you of the audio conference call that will start at 1:30 P.M. Central European Time. Details about the call may be found on our website, yara.com, under Investor Relations. Finally, I would just like to thank you for following the webcast and looking at the presentation.