October 26, 2023 [Balkan Green Energy News]- A startup called Green Energy Park is working on the establishment of a worldwide supply chain for a major green ammonia import and supply hub. It plans to build the midstream facility on the island of Krk in Croatia. Green ammonia can be converted to hydrogen, used as a fuel directly or as a raw material in fertilizer production.
Green ammonia could become key for the decarbonization of a substantial part of industrial production. But in a commercial sense, it has a long way before becoming competitive against the ammonia produced from fossil gas. The production of green and low-carbon ammonia requires nitrogen, from air, and hydrogen from electrolyzers powered by renewable or nuclear electricity, respectively.
Developers of facilities for green ammonia and green hydrogen, both still far from profitable, count on massive subsidies in Europe and North America. Investors in the sector are mostly struggling to obtain financing and develop supply chains. There are some companies that are getting there step by step, so they can start to focus on scaling up.
According to the letter of intent, the production and export complex in Brazil is envisaged with 5 GW in capacity
The island of Krk in Croatia hosts a liquefied natural gas (LNG) terminal. Strategically positioned, in the North Adriatic, it will have an increasing role in the surrounding region. A startup called Green Energy Park is betting on the same advantage for green ammonia. The location leans on hydrogen corridors that the European Clean Hydrogen Alliance recently outlined.
The firm recently said that it signed a letter of intent for the establishment of a 5 GW production and export complex in Piauí in northeastern Brazil.
Completion of first storage tank in Krk scheduled for 2027
Placed in a special economic trade zone, the first green ammonia plant under development by Green Energy Park would grow to five million tons of capacity per year, the announcement reads. One fifth is earmarked to be shipped to Krk. The next step is to produce a feasibility study.
Green Energy Park said it has chosen Piauí as the first of a minimum of eight upstream facilities to supply its global distribution network with an initial focus on European end markets. The company pointed to cost-effective renewable energy from wind and solar in the Brazilian state.
GEP Krk will be able to supply an equivalent of 1.8 million tons of hydrogen per year, Green Energy Park claims
In the beginning, the GEP Krk hub will have ten million tons of annual capacity for green ammonia import, storage, and distribution per year, according to Green Energy Park. It is equivalent to 1.8 million tons of hydrogen. It valued the first phase at EUR 500 million and also revealed a target of EUR 2.5 billion.
The midstream facility will be located at a deepwater seaport and initially operate with bunker vessels, the firm said. It expects the first storage tank of 100,000 cubic meters to be completed in mid-2027. Green ammonia would be transferred to ships and trucks, the firm announced. In addition, it said it would build storage tanks of 80,000 cubic meters each.
Green Energy Park looking for investments in its franchise
Green Energy Park also said is looking at opportunities in the industrial centers in north Italy, south Germany and other nearby areas.
Green ammonia is an energy carrier that can be converted back to hydrogen. It can also be used as a fuel directly or as a raw material in fertilizer production and other industrial applications. Ammonia is much easier to handle and transport than hydrogen, a volatile gas with the smallest molecules in the universe.
“We welcome private parties to join our open franchise network and collaborate with us along the various parts of the hydrogen value chain. Our mission is to unite upstream, midstream, and downstream facilities and coordinate the timing and scale of investment activities between our network partners,” Chief Executive Officer of Green Energy Park Bart Biebuyck said.
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