🔊 The results of the #H2Global pilot auction for the #renewableammonia lot have been published! 📝 Fertiglobe, a joint venture between OCI Global and ADNOC Group, has signed a 7-year Hydrogen Purchase Agreement (HPA) with Hintco, running from 2027 to 2033. Under this HPA, Fertiglobe will deliver at least 40,000 tonnes of renewable ammonia per year from their plant in Ain Sokhna to the Port of Rotterdam, with potential delivery increases to between 17,500 and 33,000 tonnes annually on Hintco’s demand. 🚢 The renewable ammonia will be transported to storage tanks at Ein El Sukhna Port via an existing 7km pipeline, while Fertiglobe International Trading will oversee the seaborne delivery to #Europe. 💶 The winning bid was priced at 1000€ per tonne of ammonia, including shipping, with a production cost of 811€ per tonne (around 3.5€ per kilogram of hydrogen). This leads to a total contract value of 397 million €. 💧 The project will feature a 100 MW alkaline #electrolysis setup, fed by 273 MW of new #renewableenergy, with a production capacity of 13,000 tonnes of #hydrogen and 73,000 tonnes of #ammonia annually. 🌿 The auction attracted 22 bidders, all planning to use alkaline electrolysis, with an average electrolysis size of 145 MW per bid. The average production price bid was 1,048 EUR per tonne of ammonia, translating to nearly 5€ per kilogram of hydrogen. By targeting support for the most competitive global projects and by building strong price signals, H2Global Foundation will optimise its funding efficiency and contribute to build a functioning, global #RFNBO market. We look forward to hearing from the renewable methanol pilot auction results and the launch of the competition based sale process! Read the full report here 👉 https://lnkd.in/deAWwAsq
Insightful!
Marine Engineering Instructor at AAST
1moFor a greener planet