Abu Dhabi-headquartered Fertiglobe, a nitrogen fertiliser and ammonia producer and distributor, has been selected as the winning bidder to supply renewable ammonia to the European Union (EU).
This follows a pilot auction by H2Global, funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK).
The German government has committed €4.43 billion to H2Global’s ‘double-auction’ mechanism implemented by Hintco to facilitate the expansion of renewable hydrogen and derivative products.
Fertiglobe, a strategic partnership between ADNOC and OCI Global, has committed to supplying renewable ammonia starting at a potential 19,500 tons in 2027, with volumes potentially scaling up to 397,000 tons cumulatively by 2033, at a delivered contract price of €1,000 per ton. The maximum contract value is EUR 397 million.
Commenting on the auction, Timo Bollerhey, Chief Executive Officer of Hintco and Co-creator of H2Global, said: “This auction result is a strong indication of the market potential of renewable hydrogen and its derivatives. The energy transition requires value for money, workable solutions – and this first pilot auction has demonstrated that financial and procurement innovations like H2Global’s mechanism not only work but are needed to create thriving markets that motivate and mobilize private finance.”
Fertiglobe has been supported in its bid and will secure a supply of renewable hydrogen for the contract’s duration by Egypt Green Hydrogen—a consortium between Fertiglobe, Scatec ASA, Orascom Construction, The Sovereign Fund of Egypt, and the Egyptian Electricity Transmission Company—located in the Suez Canal Economic Zone.
Based on the award, Fertiglobe and Egypt Green Hydrogen have entered into a 20-year ammonia offtake agreement.
Fertiglobe signed the ammonia sale agreement with its consortium partners in Egypt Green Hydrogen during the recently held Egypt-EU Investment Conference.
Terje Pilskog, Chief Executive Officer of Scatec, said that the award represents a “key milestone” for the Egypt Green Hydrogen project in Ain Sokhna, Egypt.
“This demonstrates the competitiveness of green hydrogen and ammonia production in Egypt, driven by its abundant renewable energy resources, strategic geographical location, and strong government support.”
It was shared that Lot 1, covering renewable ammonia, received interest from over 65 countries and attracted bids from 22 companies/consortia from five continents. Fertiglobe was the successful bidder among five finalists.
Lots 2 and 3 covered renewable methanol and e-sustainable aviation fuel (eSAF), respectively, with the latter ending without a contract being awarded.
It was shared that funds from eSAF will be allocated to the ongoing Lot 2 for renewable methanol.
