Egyptian-made green ammonia to help power Europe’s green transition: Germany, through its H2Global hydrogen initiative, awarded a 20-year, EUR 397 mn green ammonia offtake agreement with UAE-based renewables player Fertiglobe, according to a statement from the OCI Global- and Adnoc-owned company. This came after Fertiglobe won the first of a number of tenders to be launched by the German side to secure green hydrogen.

The details: The agreement will see Fertiglobe supply H2Global with up to 19.5k tons of green ammonia annually beginning in 2027, which could be cranked up to 397k tons by 2033 at a rate of EUR 1k per ton. It will then resell it at a reduced rate to EU companies, according to a statement from the German Economic Affairs Ministry.

But where will the green ammonia come from? Fertiglobe’s green hydrogen partnership with Orascom Construction, Scatec, the Sovereign Fund of Egypt (SFE), and the Egyptian Electricity Transmission Company — dubbed Egypt Green Hydrogen — will provide the green hydrogen needed for Fertiglobe to produce green ammonia at its ammonia plants. The consortium’s plant kicked off a trial phase in November 2022 and aims to produce some 13k tons of green hydrogen a year. Fertiglobe will buy the plant’s production of green ammonia for the coming 20 years — marking the world’s first long-term green ammonia purchase agreement.

The first of many: The German side is already preparing to launch a second tender under its H2Global initiative looking for international contracts to supply green hydrogen — Germany’s Economic Affairs Ministry has earmarked EUR 3.53 bn for the initiative.

Remember: Local and foreign investor appetite for the sector is building alongside the government’s plan to turn Egypt into a regional hub for green hydrogen production by 2026 and a global hub by 2030. The country aims to produce 3.2 mn tons of green hydrogen per year by 2030 and 9.2 mn tons per year by 2040.

The story also got ink from: Bloomberg | Reuters.

Tags: