Starting in 2027, Fertiglobe's renewable ammonia supply will aid Europe's energy diversification and emission reduction goals
Fertiglobe, a leader in sustainable ammonia production, has announced its selection as the winning bidder to supply renewable ammonia to the European Union (EU). This follows a pilot auction by H2Global, an initiative funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK).
Fertiglobe, headquartered in Abu Dhabi and a strategic partnership between ADNOC and OCI Global, will begin supplying renewable ammonia in 2027 with an initial commitment of 19,500 tonnes.
This volume is expected to increase to 397,000 tonnes by 2033, with a contract price of €1,000 per tonne.
Support and mechanism for ammonia
The German government has invested €4.43 billion in H2Global’s double-auction mechanism, designed to bridge the gap between high global hydrogen prices and the lower prices needed for economic viability.
This model ensures active participation from both buyers and sellers.
The renewable ammonia supply will significantly enhance Europe’s energy security and reduce emissions.
The expected CO2 emissions savings are equivalent to the annual emissions of 62,000 cars.
Ahmed El-Hoshy, CEO of Fertiglobe, stated, “This award is a significant milestone for Fertiglobe in advancing sustainable ammonia production and progressing towards the Final Investment Decision (FID) of the Egypt Green Hydrogen project, expected in H1 2025.”
“Our leadership in supplying low-carbon products and our commitment to a sustainable future are evident in this achievement.”
Strategic and long-term impact
The agreement supports Europe’s efforts to diversify energy sources and aligns with the UAE-Germany Energy Security and Industry Accelerator (ESIA) signed in 2022.
It also supports ADNOC’s goal to capture 5% of the global low-carbon hydrogen market by 2030, contributing to the UAE’s National Hydrogen Strategy.
Launched in late 2022, H2Global’s pilot auction attracted bids from over 22 companies across five continents, with Fertiglobe emerging as the top bidder for renewable ammonia.
Fertiglobe is supported by the Egypt Green Hydrogen Consortium, including Scatec ASA, Orascom Construction, The Sovereign Fund of Egypt, and the Egyptian Electricity Transmission Company.
This consortium ensures a secure renewable hydrogen supply for the contract’s duration.
Fertiglobe’s commitment to renewable ammonia production aligns with global trends towards sustainable energy solutions. The company’s ISCC PLUS-certified bio-ammonia is being used in various industries, including the production of methyl methacrylate for PLEXIGLAS and food and drink sectors in the UK, demonstrating its versatile applications and contribution to reducing carbon footprints across different sectors.
Source: Logistics MiddleEast
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