Unlocking ammonia offtake through a fully functional import supply chain
By on May 25, 2023
Renewable and CCS-based ammonia is set to play a key role in decarbonisation across industries and geographies. Many countries in Europe and Asia will rely significantly on imported supplies to meet their demand. Germany, for example, estimates it will import 50-70% of its hydrogen needs.
To achieve a timely, large-scale renewable ammonia industry, a fully functional supply chain from production to usage will be required. In this article, we highlight strides being made towards this through industrial partnerships between producers, gas infrastructure owners, port operators and end use customers.
Hyphen Hydrogen Energy comes to Europe via Koole’s Rotterdam port facilities
Namibia-based Hyphen Hydrogen Energy has signed an agreement with Netherlands-based Koole Terminals for renewable ammonia import into north-western Europe. Hyphen plans to supply its European customers using Koole’s Port of Rotterdam import terminals.
Hyphen, which plans to have 2 million tonnes of renewable ammonia online by 2030, has signed MoUs with multiple European customers (including German energy giant RWE) for the supply of up to 750, 000 tonnes of renewable ammonia annually.
The Port of Rotterdam is a critical hub servicing north-western Europe and has moved rapidly to support the establishment of new green hydrogen import capacity to facilitate this regions energy transition. Koole Terminals is one of the most advanced import terminals under development and we look forward to working with them to meet first supply of ammonia from our project into Europe by early 2028.
Marco Raffinetti, CEO of Hyphen Hydrogen Energy in Hyphen’s official press release, 9 May 2023
This cooperation will allow us to further scale-up the multi-million tonne facility. Koole is an experienced independent operator of twenty-one liquid bulk terminals across seven countries, already handling and storing ammonia. With our current and planned infrastructure, terminals, modalities, and integrated solutions, we play a leading role in facilitating the energy transition.
John Kraakman, CEO of Koole Terminals in Hypen’s official press release, 9 May 2023
Norway and Germany: VNG partners with Aker Horizons
German gas group VNG and Netherlands-based Aker Horizons intend to establish infrastructure between the two countries to enable large-scale hydrogen supply by 2030. The two companies have signed an agreement in which hydrogen will be shipped into the German market from Aker’s Norway production bases in Narvik and Aukra.
At the Narvik site, Aker is currently developing a ‘green industrial hub’ which will produce between 1,000 – 1,500 tonnes of renewable ammonia daily by 2028. The company is also developing a CCS-based hydrogen facility in Aukra, west coast Norway which is expected to have a daily capacity of 1,200 tonnes of hydrogen by 2030.
Further, Aker is participating in a feasibility study into the construction of a hydrogen pipeline from Norway to Germany. Norway aims to leverage its competitive renewables to build a clean hydrogen industry for supply to the rest of Europe.
Aker Horizons is actively engaging with hydrogen offtakers in continental Europe and is experiencing strong interest from German industry. The LOI with VNG, a significant player in the German market, is one of several recently signed with German companies. These agreements reflect Germany’s commitment to realize its hydrogen ambitions, providing significant opportunities for Norwegian producers.
Knut Nyborg, MD of Aker Horizons Asset Development in Aker Horizon’s official press release, 9 May 2023
VNG and Yara Clean Ammonia: a large-scale ammonia supply chain through Rostock
VNG has also partnered with Yara Clean Ammonia to create a supply chain for ammonia into Germany. The two companies have signed a cooperation agreement which, in the future, would see Yara supply ammonia to VNG for further distribution into German industry. According to the two parties, the Port of Rostock can become a key inlet for ammonia into Germany. The city is proximally located to Yara’s Poppendorf plant and to a VNG-owned pipeline network. It also has existing port facilities that can be upscaled for large-scale ammonia handling. VNG plans to play a significant role in bringing ammonia into Germany, leveraging its existing gas infrastructure and expertise to lead the construction of a large-scale supply chain.
The German Energiewende and the Hydrogen Strategy makes Germany a CenterPoint for development and implementation of the low carbon hydrogen and ammonia value chains. Yara is already well positioned to take part in this development with our import terminals in Rostock and Brunsbüttel, and we see the collaboration with VNG as a very important step to help developing the low carbon hydrogen value chains in Germany.
Magnus Ankarstrand, President of Yara Clean Ammonia, Norway, in Yara’s official press release, 24 April 2023