Fertiglobe has been announced as the successful bidder in the first H2Global pilot auction for renewable ammonia, funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). The project will see Fertiglobe, a partnership between ADNOC and OCI, begin producing renewable ammonia for delivery to European ports in 2027, with a maximum contract value of EUR 397 million.

The agreement secures up to 19,500 tons of renewable ammonia in 2027, potentially increasing to 397,000 tons by 2033. This marks a significant milestone for the European renewable ammonia market and global decarbonization efforts. Launched at the end of 2022, the auction received interest from 65 countries and bids from 22 companies. Fertiglobe emerged as the winner among five finalists.

Timo Bollerhey, CEO of Hintco and Co-creator of H2Global, emphasized the auction's role in demonstrating the market potential of renewable hydrogen and its derivatives. Fertiglobe will use renewable hydrogen from Egypt Green Hydrogen, a consortium that includes Scatec ASA, Orascom Construction, and others, as feedstock for ammonia production at its Ain Sokhna plant.

The contract price was set at EUR 1,000 per ton, with a net price of EUR 811 per ton, signaling the viability of renewable ammonia production and import into the EU at competitive prices. Ahmed El-Hoshy, CEO of Fertiglobe, noted the award as a significant step towards sustainable ammonia production and further investment in Egypt Green Hydrogen.

Markus Exenberger, Executive Director of H2Global Foundation, highlighted the global collaboration and financial innovations necessary for the energy transition. The success of this auction sets the stage for more competitive pricing and larger-scale projects in future rounds.

Source: hydrogeninsight.com