New off-take, distribution partnership for Denmark mega-project
By Julian Atchison on February 14, 2023
Monjasa, HØST PtX Esbjerg
Global shipping group Monjasa will provide logistics services to distribute electrolytic ammonia produced at the under-development HØST PtX project in Esbjerg, Denmark. Part of the production volume will also be reserved for Monjasa to utilise as a bunker fuel. This marks the second off-take agreement secured for the Esbjerg project, with a consortium of agricultural & food companies (“Green Fertilizer Denmark”) designating HØST as the ammonia supplier for a new, domestic fertiliser manufacturing initiative that will reduce emissions and eliminate Denmark’s reliance on imports.
HØST PtX is led by Copenhagen Infrastructure Partners, who launched the project in early 2021. Via power purchase agreements, offshore wind & solar will power 1 GW of electrolysers and a conventional ammonia plant, leading to the production of about 600,000 tonnes of ammonia each year. Process heat from ammonia production will be captured and used to heat buildings & households in the Esbjerg area. FID on the project is due this year, with construction to begin immediately after.
We are excited to embark on this journey with HØST PtX Esbjerg and Copenhagen Infrastructure Partners because it shows shipowners around the world that green ammonia is becoming available as a long-term marine fuel option…we are determined to become an enabler of alternative fuels worldwide thanks to our unique industry position between fuel producers and end users. Only by being curious and learning from each other will we succeed in decarbonising shipping and we have a very strong partner in CIP.
Monjasa Group Responsibility Director Jesper Nielsen in his organisation’s official press release, 6 Feb 2023
Green ammonia is the cleanest of alternative fuel production methods for the maritime industry, but also represents the classic chicken-and-egg challenge…should the ship owners drive the demand by building new ships using green fuel technology or must the supply chain develop to support the transition? For HØST PtX Esbjerg and Monjasa it is crucial to take the first steps and establish ambitious partnerships that also serve as a pull factor towards the maritime industry and ultimately will help secure more ammonia-fuelled newbuilds.
From Monjasa’s official press release, 6 Feb 2023
Carbon intensity of Esbjerg ammonia
HØST PtX Esbjerg will consume around 5000 GWh of electricity each year, or roughly the entire electricity output of the planned Thor wind farm, a 10 GW installation in the North Sea. Power purchase agreements already secured by HØST means the project will essentially be grid-connected, powered by Denmark’s wind-heavy national grid. At the launch of Green Fertilizer Denmark in October last year, HØST Project Director David Dupont-Mouritzen indicated the goal was to produce ammonia with a carbon footprint “10% of conventional ammonia”.