Nel will supply over 1 GW of alkaline electrolysers for Hy Stor Energy’s hydrogen production and storage hub project in Mississippi, USA. In other electrolyser news, Cepsa and Allied Green Ammonia have picked technology providers for their under-development projects in Spain and Australia.
Incentivised by the US government’s Inflation Reduction Act, Topsoe plans to build a 1 GW solid oxide electrolysis cell manufacturing plant in Virginia. Combined with its existing SOEC factory in Herning, Denmark, the new factory will make Topsoe the largest SOEC manufacturer globally.
The European Hydrogen Bank has awarded nearly €720 million to seven renewable hydrogen and ammonia projects. The funding will act to bridge the price gap between the cost of hydrogen production and the price buyers are willing to pay. Recipients will receive €0.37 - €0.48 in subsidies per kilogram of renewable hydrogen, and will collectively produce 1.58 million tons of renewable hydrogen over ten years. In conducting a transparent auction process, the European Commission has also provided vital insights into trends in demand for renewable hydrogen and ammonia.
Kenya aims to substitute 50% of current, ammonia-based fertilizer imports with locally-produced alternatives, based on the production of electrolytic hydrogen. New guidelines from Kenya’s Energy and Petroleum Regulatory Authority set carbon intensity thresholds for “green” hydrogen and ammonia, as well as the incentives on offer for project developers. The new launch follows commitments to promote local fertilizer production made by heads of state at the Africa Fertilizer and Soil Health Summit. We also explore two existing renewable projects in Kenya from Maire Tecnimont and Talus Renewables.
The joint venture between Fortescue and OCP will supply hydrogen, ammonia and fertiliser to the Moroccan market and beyond. Meanwhile in Australia, Fortescue’s recently opened electrolyser production facility will produce 2 GW of PEM electrolysers per year.
Launched in 2022, MAIRE Tecnimont will complete FEED for the MadoquaPower2X project in Sines, Portugal, as well as an EPC proposal for construction. The project will feature up to 1 GW of alkaline electrolysis capacity, feeding the production of 300,000 tons per year of ammonia. Terminal facilities will include large-scale storage, enabling the export of ammonia to northwest Europe.
A Norwegian-Ugandan consortium will develop a hydroelectric-powered hydrogen, ammonia and fertiliser production facility. Producing 200,000 metric tons of fertiliser every year based on hydroelectricity, the project aims to reduce Uganda’s reliance on expensive fertiliser imports.
The Egyptian Parliament has ratified an incentive package for renewable hydrogen producers, aiming to pave the way for a rapid expansion of the sector. The incentives range from tax concessions to administrative streamlining and will seek to create an attractive investment climate. Egypt is well-located to play a leading role in meeting European demand for hydrogen exports. It is not alone in this ambition, however. Similar schemes have been launched by countries such as Oman.
China is keeping pace with IEA predictions for electrolyzer installations, with as much as 55% of the world’s total capacity to be installed there by 2028. Coupled with strong wind-power resources, domestic manufacturing capabilities and multiple economic drivers to transition away from coal-based ammonia production, China is ideally positioned to speed up the deployment of renewable ammonia projects.
The Indian government has launched a new incentive scheme for renewable ammonia, aiming to support the production of 550,000 tonnes per year from 2027. The news comes as the first winners of subsidies for renewable hydrogen production & domestic electrolyser manufacturing were announced. In December, the government also amended an existing scheme to provide financial assistance for new-build vessels powered by green fuels, including ammonia.