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UAE-based urea and ammonia exporter Fertiglobe secured a EUR 397 mn offtake agreement from the German government’s H2Global program to supply green ammonia to the EU from its Egyptian facilities between 2027 and 2033, following an auction, according to a statement (pdf). The contract, which will secure 10% of Germany’s annual ammonia needs, is the result of the first among a raft of global tenders to important green hydrogen derivatives.
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The details: With a production cost of EUR 1k per ton, the agreement will see Fertiglobe export 19.5k tons of green ammonia in 2027, potentially scaling up output to a cumulative 397k by 2033. Fertiglobe will produce the green ammonia at its Ain Sokhna plant in Egypt, which it is developing as part of a consortium comprising Scatec, the Sovereign Fund of Egypt, and Orascom Construction.
Fertiglobe inked a 20-year offtake agreement with the consortium to provide the green hydrogen, which will be used as the raw material to produce the green ammonia at the plant, according to a statement.
About the plant: The plant kicked off its first phase in November 2022 and aims to produce some 13k tons of green hydrogen a year, which will be used to create 70k tons of green ammonia at Fertiglobe’s ammonia plants. 270 MW of solar and wind power plants will be installed to power the plant.
What’s next? The consortium expects to reach financial close on the plant in 1H 2025.
Fertiglobe already made a shipment from its Egypt plant: Fertiglobe sent the world’s first ISCC PLUS-certified (International Sustainability and Carbon Certification) green ammonia shipment to India from its electrolyzer facility in Egypt’s Suez Canal Economic Zone in December.
The firm is also working on expanding in the UAE: Fertiglobe, alongside Adnoc-ADQ JV Ta’ziz, GS Energy, and Mitsui, also signed a shareholder agreement to construct a facility to produce some 1 mn tons of low-carbon ammonia annually in the UAE. The company is currently studying another green hydrogen project in the UAE in collaboration with Masdar and Engie.
