EnBW acquires equity and offtake rights in Norwegian renewable ammonia project

By Geofrey Njovu on September 11, 2023

Aerial image of the SkiGA production site. Based in Western Norway, the SkiGA facility is scheduled for completion in 2026, producing 100,000 tonnes of renewable ammonia annually. Source: EnBW.
Click to learn more. Aerial image of the SkiGA production site. Based in Western Norway, the SkiGA facility is scheduled for completion in 2026, producing 100,000 tonnes of renewable ammonia annually. Source: EnBW.

German energy company EnBW has acquired a 10% equity stake in the Norway-based renewable ammonia project Skipavika Green Ammonia (SkiGA). Also part of this agreement, EnBW will have long-term offtake rights on the ammonia produced.

The SkiGA facility will be located near the Mongstad refinery in the Gulen municipality on Norway’s west coast. The facility is set to be completed in 2026 and expected to produce 100,000 tonnes of renewable ammonia annually. So far, grid connection has been secured and negotiations are underway for Power Purchase Agreements.

Norwegian hydrogen & ammonia developer Fuella AS is leading the development of SkiGA. Allianz Capital Partners recently invested €20 million to support Fuella’s business development activities.

This agreement aligns with Germany’s updated National Hydrogen Strategy, which forecasts that the country’s hydrogen demand will double by 2030, 50-70% of which will have to be met through imports. Ammonia imports arriving in Germany can either be cracked back into hydrogen or used directly for combustion in heat and power generation – a potential end-use application mentioned by EnBW in the announcement:

EnBW is committed to becoming a carbon-neutral power generation leader. Our collaboration on green ammonia, aligned with German, Norwegian and the EU goals, signifies a strategic investment in carbon-neutral solutions. The Nordic region is poised to be a top supplier to Europe’s carbon-free energy landscape, complementing its existing position as a reliable, stable energy partner of choice for Europe. This agreement underscores the potential of Norwegian-German collaboration in green energy and industry.

Fuella convinced us as partner with their hands-on approach, their industry expertise, and their great network with other strong partners, e.g. Allianz. We in EnBW want to be a long-term partner for Norway’s ambitions to develop the future energy mix, both offshore wind, green hydrogen and ammonia. I believe this project will have substantial effects on local, national, and international scales. We are very excited to be part of this project.

Peter Heydecker (Executive Director Trading) of EnBW in his organisation’s official press release, 29 August 2023

The agreement with EnBW ensures the development of the plant as EnBW will play a crucial role in commercializing the green ammonia sourced from SkiGAs production for long term offtake. Hence, it marks a milestone in the use of green ammonia as part of a future carbon free energy system.”

Cornel Russi, CEO of SkiGA in EnBW’s official press release, 29 August 2023

Separately, along with VNG and JERA, EnBW is participating in a feasibility study on ammonia cracking at the Port of Rostock. Historically focussed on fossil fuels, EnBW is “working at full steam” to move towards renewable energy generation and alternative fuels.