August 29, 2024 [offshore energy]- Abu Dhabi-based Fertiglobe, the winner of the first H2Global pilot auction for renewable ammonia, has officially signed a contract with Hintco, an intermediary for purchasing and selling green power-to-X (PtX) products within the H2Global funding mechanism.
The agreement is said to represent a pivotal moment in the evolution of the European renewable ammonia market and global decarbonization efforts, demonstrating that it is possible to build projects and markets that align with the Paris climate goals.
“The success of the pilot auction also underscores the global collaboration required to drive large-scale renewable energy transition projects. Initial price signals from the auction suggest that as production scales up, costs will decrease, paving the way for more competitive pricing in future rounds,” Hintco said.
Fertiglobe was selected as the winning bidder among five finalists of the pilot auction in July this year. The pilot auction for Lot 1 covering renewable ammonia was launched at the end of 2022, attracting interest from over 65 countries and bids from 22 companies/consortia from five continents.
Under the contract valued at up to €397 million, Fertiglobe will begin producing renewable ammonia, with the first shipments scheduled to start at a potential 19,500 tons in 2027, with volumes potentially scaling up to 397,000 tons cumulatively by 2033, at a delivered contract price of €1,000 per ton.
Fertiglobe will procure the supply of renewable hydrogen from Egypt Green Hydrogen to be used as feedstock for the production of renewable ammonia at the company’s existing ammonia plant in Ain Sokhna.
Timo Bollerhey, Chief Executive Officer of Hintco, remarked on the contract signing: “This is a significant moment for Hintco that proves progress is possible for the clean hydrogen market. As exciting as this moment is, my team is already focused on what comes next: new tenders for both clean hydrogen purchase and sales agreements. Time is short, and we must build both infrastructure and markets rapidly and efficiently if we’re to avoid climate catastrophe.”
Haroon Rahmathulla, Chief Operating Officer of Fertiglobe, added:“This award is a significant milestone for Fertiglobe as the first renewable ammonia producer to secure a long term offtake and a critical step towards achieving a final investment decision for Egypt Green Hydrogen. We are pleased to leverage the support of H2Global, which renders our investment in sustainable ammonia economically viable, to advance crucial decarbonization technology while upholding our disciplined growth strategy.”
Free Trial: Access 13,300 Tank Terminal and Production Facilities
13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data
