Site items in: Finance

Renewable ammonia & fertilizers in Sub-Saharan Africa
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In our December episode of Ammonia Project Features, our three guests focused on renewable ammonia production in Sub-Saharan Africa. Allan Manhanga (Sable Chemicals) took us through the story of renewable ammonia production in Zimbabwe from 1972 to 2015, and what is needed to restart the industry there. Ralph Koekkoek (MET Development) presented a new renewable ammonia & fertilizer project underway in Kenya, with a focus on local farmers and national food security. And Marcel Jacobs (African Hydrogen Partnership) emphasized the important role of organisations in raising awareness & de-risking future projects, particularly through approaches like the proposed East African Green Hydrogen and Fertilizer Corridor.

COP27: EU forms new partnerships
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The European Commission has signed strategic partnerships with three countries at COP27: Namibia, Kazakhstan and Egypt. Key cooperation areas include boosting the rollout of renewable energy generation for hydrogen production, and European investment to finance renewable hydrogen production. Also in Sharm el-Sheikh, German Chancellor Olaf Scholtz announced the first tender process for H2Global will shortly commence, with a further €4 billion to be invested into the pay-for-difference initiative.

Gigawatt-scale renewable ammonia in Northwest Africa
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In our November episode of Ammonia Project Features we explored two gigawatt-sized ammonia production projects in Northwest Africa: AMUN (Morocco) and AMAN (Mauritania). Nouri Chahid (CWP Global) presented project details, while Lloyd Pinnell (Systemiq) explored the socio-economic impacts of AMAN in Mauritania. If developed in the right way, AMAN could provide potable water, access to cheap renewable electricity, significant local employment & education opportunities, as well as the opportunity to build institutions to best manage new economic windfalls.

Canada to launch new tax credit for hydrogen production
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The Canadian government has proposed a significant tax credit for hydrogen production in the country - at least 40% if all conditions are met. Citing the Infrastructure Reduction Act in the US, the Department of Finance sees adoption of “competitive” measures as critical to make sure Canada is not “left behind”. The government will shortly launch industry consultation on how best to implement the tax credit, based on lifecycle carbon intensity of hydrogen.

Pilbara renewable ammonia project reaches key milestones
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ENGIE has successfully reached a final investment decision on Project Yuri. The collaboration with Yara will see renewable hydrogen feedstock produced next door to Yara’s existing ammonia & fertiliser production facility in Karratha, Western Australia, with construction to commence this year, and production of renewable hydrogen to begin in 2024.

In further developments, Yuri has new stakeholders, with Mitsui & Co. securing a 28% interest stake in Yuri, and Technip Energy being selected to lead EPCC works. And in certification news, the Smart Energy Council also announced it has granted pre-certification for renewable hydrogen & ammonia production from Project Yuri, under the Zero Carbon Certification Scheme.

Singapore: investments, a green corridor partnership and a new bunkering vessel project
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Singapore’s sovereign wealth fund GIC and UK-based Carlyle will both invest in the development of Eneus Energy’s renewable ammonia project pipeline, with plants in the US and UK planned. The Maritime & Port Authority Singapore and Port of Rotterdam have agreed to establish a green maritime corridor by 2027. The agreement will help accelerate the deployment of alternative maritime fuels like ammonia on the critical shipping route, which links two of the world’s largest bunkering ports. And a trio of organisations - PaxOcean Engineering, Hong Lam Marine and Bureau Veritas will jointly develop an ammonia bunkering vessel design.

Ammonia energy funding & acquisitions
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SK Innovation has led a successful $46 million capital funding round for New York-based Amogy. The new funds will go towards two ammonia-powered, heavy vehicle demonstration projects: an eighteen-wheel tractor trailer, and an ocean-going cargo ship. H2SITE has closed a successful €12.5 million Series A funding round led by Breakthrough Energy Ventures to expand manufacturing capacity in Spain, and Sweden-based organisation Alfa Laval will acquire RenCat’s patented ammonia reforming technology.

Ammonia energy financing update: March 2022
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This week we explore some recent funding announcements for ammonia energy:

  • New York-based Amogy receives backing from Amazon and the Empire State Development Fund.
  • Haldor Topsoe reaches an agreement with the European Investment Bank for a €45 million loan to support R&D initiatives.
  • Israel-based H2Pro closes a $75 million funding round to develop its proprietary water splitting technology.
  • Hy2gen closes a €200 million investment round for construction of its green e-fuel facilities, including two green ammonia projects in Norway and Canada.
  • and Australia-based Jupiter Ionics receives $2 million in government funding for development of its electrochemical synthesis technology.

Singapore invests in key green ammonia projects
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Singapore's sovereign wealth fund GIC has agreed to a strategic equity investment in InterContinental Energy, who are currently developing a number of green ammonia "Supergiants". GIC's announcement follows another significant green investment by Singapore, this time in Indonesia. $9 billion will fund a logistics hub in Jakarta and a number of renewable energy projects, with MoUs signed between the heads of state to cement a new focus on decarbonisation and alternative energies