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Ammonia supply chains between the EU and the Middle East
Article

Two developments this week as progress continues towards clean ammonia supply chains between the EU and the Middle East:

1. ADNOC signed multiple agreements with a diverse set of German organisations to study, implement and accelerate clean hydrogen supply chains between Germany and the UAE. Among the agreements is the execution of a blue ammonia “demonstration cargo” shipment from the UAE to Germany this year, via Fertiglobe’s Fertil plant in al Ruwais, UAE.

2. The UAE Ministry of Energy and Infrastructure and the Dutch Ministry for Foreign Trade and Development Cooperation signed a new MoU on hydrogen energy, with a view to supplying Europe via green hydrogen & ammonia imports into the Port of Rotterdam.

First-movers working towards renewable ammonia
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Three key first-movers at Ammonia Energy - NEOM, Yara and Fertiberia - have all made significant steps towards green ammonia production in recent times. With the launch of a new subsidiary to develop hydrogen & ammonia production, NEOM can possibly begin construction of its green hydrogen plant this month. Also this week, Yara held a groundbreaking ceremony at Heroya, with the intention to bring green ammonia and fertilisers to market by mid-2023. And a few months ago in December, green hydrogen storage tanks arrived at Fertiberia’s Puertollano ammonia plant, ready for installation.

Accelerating green ammonia import plans for Germany
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RWE is accelerating plans for a green ammonia import terminal in Brunsbüttel, with facilities to be ready to receive 300,000 tonnes per year as early as 2026. Although the immediate focus for Brunsbüttel is a new LNG import facility, RWE indicates that the ultimate goal is complete conversion of the site to only import “green molecules” like ammonia. Brunsbüttel has already been identified as a likely destination for green ammonia exports from South Australia. And, an ongoing feasibility study by the Australian-German HySupply consortium has released interim results suggesting that shipping costs for Australian ammonia to the EU will be much lower than first thought.

Denmark approves national PtX strategy
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Denmark’s new national PtX strategy has received bipartisan support from the country’s parliament. A number of policy levers - a government-backed tender process, a national electrolysis target, creating new regulatory frameworks and incentivising developers to build socially and economically responsible PtX projects - were approved. The suite of measures will unlock green fuel production potential across the country, with ammonia forecast to be the cheapest long-term option amongst the hydrogen derivatives.