Fertiglobe wins German green ammonia pilot auction

ABU DHABI, July 12, 2024 – UAE-based Fertiglobe has been chosen to supply up to 397,000 tonnes of renewable ammonia to the EU following a pilot auction by H2Global, an initiative funded by the German Federal Ministry for Economic Affairs and Climate Action, Fertiglobe announced on Thursday.

Fertiglobe, a partnership between ADNOC and Dutch company OCI Global, will supply the renewable ammonia out of Egypt. Egypt Green Hydrogen, a partnership between Fertiglobe, Scatec ASA, Orascom Construction, The Sovereign Fund of Egypt and the Egyptian Electricity Transmission Company, will supply the renewable hydrogen needed as feedstock for production.

Under the terms of the contract, Fertiglobe will supply an initial 19,500 tonnes of renewable ammonia in 2027 and potentially ramp up to 397,000 tonnes by 2033, with a maximum contract value of EUR 397 million based on a delivered price of EUR 1,000 per tonne until 2033.

“Our selection as the winning bidder in H2Global’s pilot auction underscores our leadership in supplying low-carbon products. We are leveraging this vital program which makes our investment in sustainable ammonia economically viable, supporting critical decarbonisation technology, while maintaining our disciplined growth strategy,” said Ahmed El Hosy, CEO of Fertiglobe.

The award follows the signing of four green ammonia deals worth USD 33 billion by The Sovereign Fund of Egypt, including a USD 11-billion agreement with Germany’s DAI Infrastruktur for the establishment of a green ammonia project in East Port Said.

The German government has committed EUR 4.43 billion to H2Global’s double-auction mechanism to facilitate the expansion of renewable hydrogen and derivative products. This pilot auction was launched at the end of 2022 and attracted bids from 22 companies and consortia across five continents.

Fertiglobe’s production capacity comprises 6.6 million tonnes of urea and merchant ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria. In May 2024, Fertiglobe produced the world’s first bulk shipment of CCS-enabled certified low-carbon ammonia, delivered by ADNOC to Japan’s Mitsui for use in clean power generation.

Photo courtesy of Fertiglobe

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