Fertiglobe secures €397m pilot H2Global contract for Egypt green hydrogen-based ammonia
Fertiglobe announced that it has been selected as the winning bidder to supply renewable ammonia to the European Union (EU) following a pilot auction by H2Global, an initiative funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK).
A strategic partnership between ADNOC and OCI Global has committed to supplying renewable ammonia starting at a potential 19,500 tons in 2027 (subject to actual production start date and supply availability), with volumes potentially scaling up to 397,000 tons cumulatively by 2033, at a delivered contract price of €1,000 per ton.
Ahmed El-Hoshy said, “This award marks a significant milestone for Fertiglobe in advancing sustainable ammonia production and a further critical step towards FID of Egypt Green Hydrogen, expected in H1 2025. Our selection as the winning bidder in H2Global’s pilot auction underscores our leadership in supplying low-carbon products and our commitment to shaping a more sustainable future, and I appreciate the work of our incredible team to make this award possible. We are leveraging this vital program which makes our investment in sustainable ammonia economically viable, supporting critical decarbonization technology, while maintaining our disciplined growth strategy.”
The German government has committed €4.43 billion to H2Global’s ‘double-auction’ mechanism implemented by Hintco to facilitate the rapid expansion of renewable hydrogen and derivative products. The ‘double-auction’ model, whereby buyers and sellers actively participate, aims to bridge the difference between the high prices at which hydrogen is currently being traded on the global market, and the lower prices at which it can be sold and used in economically viable ways at the regional level.
The renewable ammonia supply will help Europe’s energy security and emissions reduction efforts, with mitigated CO2 emissions by renewable ammonia imports equivalent to annual emissions of 62,000 cars. The project marks a significant ramp-up in the European renewable ammonia market, contributing to existing efforts to decarbonize the European market.
Through its successful bid, Fertiglobe has secured a long-term and strategic European customer. Fertiglobe’s bid supports Europe’s efforts to diversify its energy sources and enhance its energy security, and it is in line with the UAE-Germany Energy Security and Industry Accelerator (ESIA), which was signed in 2022. The ESIA aims to advance cooperation in energy security, decarbonization and lower-carbon fuels. These efforts also align with ADNOC’s efforts to grow global low-carbon ammonia value chains and capture 5% of the global low-carbon hydrogen market by 2030, in support of the UAE’s National Hydrogen Strategy.
The pilot auction, launched at the end of 2022, garnered interest from over 65 countries across five continents. Lot 1 of the auction, which covered renewable ammonia, recorded over a thousand downloads of the bid document from private companies, regulatory authorities, and academic institutions. The qualification phase attracted bids from 22 companies/consortia across five continents, with Fertiglobe emerging as the successful bidder from five finalists.
The auction demonstrates that renewable ammonia can be imported into the EU at attractive prices with targeted support being offered to the most competitive international projects. Fertiglobe is committed to producing ammonia in compliance with EU regulations for renewable hydrogen and meeting the additional environmental and sustainability requirements set out in the tender.
