December 06, 2024 [VNG]- The Leipzig-based gas trader VNG Handel & Vertrieb GmbH (VNG H&V), a wholly owned subsidiary of VNG AG and part of the EnBW Group, and Narvik Green Ammonia DA, owned and managed by Aker Horizons Asset Development AS, signed today a term sheet for supplying green ammonia from Narvik, northern Norway, to Germany.
The signing by the Managing Directors of VNG H&V, Konstantin von Oldenburg and Stephan Haupt, and Knut Nyborg, Managing Director of Aker Horizons Asset Development AS, took place today in Berlin.
Following the signed letter of intent in May 2023, the term sheet represents a further milestone in finalizing a supply agreement between the two companies. VNG H&V intends to purchase up to 150,000 tons of green ammonia per year from Narvik Green Ammonia DA from 2029 and supply it to its customers directly as ammonia or in the form of hydrogen. The production plant for green ammonia in Narvik, Norway, is expected to produce around 450,000 tons of green ammonia per year from 2029.
“The agreement we have, especially when taking into account the actual uncertainties in the markets, is a very important step in our supply relationship. VNG considers Narvik Green Ammonia as one of the most promising and mature large scale green ammonia projects in Europe. We are opening up new perspectives and at the same time it is strengthening our energy partnership with Norway.” explains Konstantin von Oldenburg.
“Progressing from stated ambitions to firm contracts is what we need to realize industrial-scale production of green hydrogen and ammonia. With VNG signing on as a potential off-taker, distributing our product to clients in Europe’s most important energy market, the Narvik Green Ammonia project takes a significant step in this direction,” said Knut Nyborg, Managing Director of Aker Horizons Asset Development. “Aker Horizons appreciates the trust placed in Narvik Green Ammonia and we look forward to continuing the close cooperation with VNG in the year ahead.”
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