Trammo, Iberdrola sign up to key offtake agreement

Largest to date in the EU, investment in new plant

Trammo will purchase & sell up to 100,000 tonnes per year of renewable ammonia from Iberdrola, starting in 2026. The agreement also facilitates the construction of “Europe’s first industrial green ammonia plant” in Palos de la Frontera, a facility backed by €750 million in investments and EU funding. Iberdrola will lead development of the new plant, the latest in a series of ammonia & methanol production plants underway in Europe, the USA and Australia. 500 MW of new build renewable energy generation will be constructed to support the plant. The project will kickstart a green hydrogen corridor linking southern and northern Europe, with Trammo to focus on ammonia sales to northern European industrial customers.

When you bring together one of the world’s largest renewable energy developers and the world’s largest seaborne trader of anhydrous ammonia, innovative projects like this can quickly become viable. For the past year, we have been operating Europe’s largest green hydrogen plant, which gives us the experience and understanding of the processes and technology to scale-up quickly to these larger projects…We are already in talks with Trammo to look at similar projects in other markets.

Millán García-Tola, Iberdrola’s Global Head of Green Hydrogen in his organisation’s official press release, 9 June 2023

This month Iberdrola also secured a €1 billion loan with the European Investment Bank that will co-finance the construction of twenty-two renewable energy plants in Spain, Portugal and Germany with a total installed capacity of 2.2 GW. The Palos de la Frontera project has been under development since 2020, with 200 MW of electrolysis capacity planned to be operational by the end of 2025.

Connecting Spain and the Netherlands with ammonia

Also in the news this week, Iberdrola, Gasunie and ACE Terminal have agreed to secure the logistics and supply chains necessary to import ammonia from Iberdrola’s production plants to Rotterdam. ACE Terminal is an under-development ammonia import facility on Rotterdam’s Maasvlakte, with an industrial-scale cracker planned to convert the ammonia back into hydrogen for industrial use. Gasunie subsidiary Hynetwork Services is developing a pipeline infrastructure to take hydrogen from Rotterdam to industrial customers along the Dutch national hydrogen network, including chemical, steel, refining and fertiliser manufacturers.