Fertiglobe has announced that it has been awarded a contract to supply renewable ammonia to the European Union (EU) as part of the H2Global pilot auction, an initiative funded by the German Federal Ministry for Economic Affairs and Climate Protection. Fertiglobe, a strategic partnership between ADNOC Group and Abu Dhabi-based OCI Global, has committed to supply renewable ammonia volumes starting at a potential level of 19,500 tonnes in 2027 (subject to production start date and product availability), with a potential total of 397,000 tonnes by 2033, based on a price of €1,000 per tonne.
“Winning this contract is a significant milestone for Fertiglobe, which reinforces the company’s leadership in developing sustainable ammonia production processes and is a crucial step towards making the final investment decision for Egypt’s green hydrogen project in the first half of 2025,” said Ahmed El Hoshy, CEO of Fertiglobe. “Winning the H2Global pilot auction reflects our leadership in providing low-carbon products and our commitment to creating a more sustainable future. We would like to commend the efforts of the Fertiglobe team, which have made a significant contribution to achieving this achievement. We will work to benefit from this important program that achieves the economic feasibility of our investment in renewable ammonia and supports low-carbon technologies, while maintaining the discipline of our growth strategy.”
Through its successful bid, Fertiglobe has secured a long-term partnership with a strategic European customer. The bid supports Europe’s efforts to diversify its energy sources and enhance its security, and is in line with the UAE-Germany Accelerating Energy Security and Industrial Growth Agreement, signed in 2022. The agreement aims to enhance cooperation in the areas of energy security, decarbonization and low-carbon fuels. These efforts are in line with ADNOC’s efforts to enhance the growth of global low-carbon ammonia supply chains and capture a 5% share of the global low-carbon hydrogen market by 2030, supporting the UAE’s National Hydrogen Strategy.
Fertiglobe’s bid is supported by the Egypt Green Hydrogen Project, a consortium of the company alongside Scatec ASA, Orascom Construction, the Sovereign Fund of Egypt and the Egyptian Electricity Transmission Company. The project, located in the Suez Canal Economic Zone, will ensure a stable supply of renewable hydrogen for Fertiglobe throughout the term of the agreement. Fertiglobe signed an agreement with its partners in the Egypt Green Hydrogen Project to sell ammonia at the recent Egypt-EU Investment Conference, contributing to the development of sustainable hydrogen and ammonia supply chains and enhancing production capacities.