Fertiglobe 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).

Abu Dhabi-headquartered Fertiglobe, 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 ($1085.8) per ton.

Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe, 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 aims to bridge the gap between high global hydrogen prices and lower regional prices for economically viable use.

The renewable ammonia supply will help Europe's energy security and emissions reduction efforts, mitigating CO2-emissions equivalent to annual emissions of 62,000 cars.

The project marks a significant ramp up in the European renewable ammonia market, contributing to decarbonization efforts.

Fertiglobe has secured a long-term European customer through its successful bid, supporting Europe's efforts to diversify its energy sources and enhance energy security.

The pilot auction, launched at the end of 2022, attracted interest from over 65 countries across five continents.

Fertiglobe emerged 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 offered to the most competitive international projects.

Fertiglobe is committed to producing ammonia in compliance with EU regulations for renewable hydrogen and meeting additional environmental and sustainability requirements.

Fertiglobe has been supported in its bid and will be ensured a secure 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.

During the recently held Egypt-EU Investment Conference, Fertiglobe signed an ammonia sale agreement with its consortium partners in Egypt Green Hydrogen, further developing its sustainable hydrogen and ammonia value chain and production capabilities.

Terje Pilskog, Chief Executive Officer of Scatec said: "The H2Global 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. With Fertiglobe securing an offtake agreement for the ammonia, Egypt Green Hydrogen will accelerate the project’s development and advance it towards financial close."