Ammonia supply chains between the EU and the Middle East
By on March 24, 2022
Germany – UAE
ADNOC has signed multiple agreements with a diverse set of German organisations to study, implement and accelerate clean hydrogen supply chains between Germany and the UAE. Germany’s National Hydrogen Strategy expects demand for clean hydrogen to be 3 million tonnes per year by 2030, of which around 60% will need to be imported. The UAE (under their Hydrogen Leadership Roadmap), has identified this growing German import market as a top priority, setting a target to provide 25% of imports: roughly 450,000 tonnes of clean hydrogen per year in 2030, or 2.5 million tonnes of clean ammonia.
Among the agreements is the execution of a blue ammonia “demonstration cargo” shipment from the UAE to Germany this year, via Fertiglobe:
Individual agreements with German companies Aurubis, RWE, GETEC and STEAG to explore opportunities for collaboration in low-carbon and renewable hydrogen derivatives, including the execution of the first low-carbon (“blue”) ammonia demonstration cargos, produced by Fertiglobe, from the UAE to Germany in 2022 for use in a variety of applications.
ADNOC will provide low-carbon ammonia to its partners in Germany that is produced by Fertiglobe at its Fertil plant in the Ruwais Industrial Complex in Abu Dhabi. The sales represent a further milestone in the planned scale-up of blue ammonia production capabilities in Abu Dhabi. In addition, ADNOC and its partners are investing in a new world-scale 1 million metric tons per annum blue ammonia project at TA’ZIZ in Ruwais, subject to regulatory approvals. ADNOC, with its partners, is also exploring various opportunities in green hydrogen.
Details of a low-carbon, “demonstration” ammonia cargo to be sent this year, from the official press release, 21 March 2022
ADNOC will also work with HHLA and AD Ports Group to help realise Hamburg’s vision of becoming Germany’s key hydrogen import destination. This week we’ve already seen RWE announce an ammonia import terminal at Brunsbüttel – a port location very close to Hamburg via the Elbe River.
Netherlands – UAE
At this week’s Dutch-Dubai trade mission, the UAE Ministry of Energy and Infrastructure and the Dutch Ministry for Foreign Trade and Development Cooperation signed a new MoU on hydrogen energy. Both parties acknowledged the potential for green hydrogen exports from the UAE to replace fossil-based fuels in Europe. The MoU was signed by Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure, and the Dutch Minister for Foreign Trade and Development Cooperation, Liesje Schreinemacher, at the Netherlands Pavilion at Expo 2020 Dubai.
There is increasing pressure on current ecosystems to meet the burgeoning demand for energy resources without further eroding the ecosystem. The production and use of green Hydrogen Energy as an alternative to fossil fuel has an important place for both of our countries in our aim to achieve net-zero emissions. I very much welcome being here today to sign this important agreement in an effort to achieve our common goals for the future of our planet.
Dutch Minister for Foreign Trade and Development Cooperation Liesje Schreinemacher at the signing ceremony, 22 March 2022
Speaking to the press at the Dubai event, Dutch Minister for Infrastructure and Water Management Mark Harbers described a broader vision based on the new MoU: distributing green hydrogen & ammonia imports from the UAE to Europe, via the Port of Rotterdam.
The Port of Rotterdam is looking for a project where hydrogen or ammonia could be easily shipped into Rotterdam to be distributed to other countries. And the UAE would be one of the biggest suppliers in future…You have more sunshine than we have. So that might be a fantastic business opportunity for companies based here to sell their hydrogen in future to the Netherlands.
Dutch Minister of Infrastructure and Water Management Mark Harbers, quoted in “UAE could be one of biggest suppliers of hydrogen to Europe”, Khaleej Times 22 March 2022 (author Anjana Sankar)