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Friday
26 Jul 2024

EnBW to Market Green Ammonia From Norway’s Skiga Project

26 Jul 2024   
German utility EnBW (EBKG.DE), opens new tab on Thursday said it expects to receive 100,000 tons of green ammonia a year from Norway's Skipavika Green Ammonia project from 2027 onwards, in a boost for Germany's efforts to decarbonise industrial processes.

Green ammonia, made with renewable electricity, can be used to make hydrogen via a cracking process, which is low in carbon emissions.

Germany is betting on green hydrogen, produced through electrolysis driven by wind and solar power, as an alternative to fossil fuels.

EnBW will collect the ammonia at the port of Skipavika near Bergen on Norway's west coast and deliver it to terminals for cracking into hydrogen at western European terminals or industrial sites in Germany, the company said, as it opened registration for a tender process.

The Skipavika Green Ammonia (SkiGa) project will use local green electricity to run through its 130 megawatt (MW) electrolyser, which can save 240,000 tonnes of CO2 emissions compared with the production of so-called grey hydrogen made from coal or gas, it said.

EnBW's local partner FUELLA in April received funding for its electrolyser scheme along with six rival projects in a first pilot auction of the European Hydrogen Bank, which will spend 720 million euros ($781.27 million) on innovation fund grants over 10 years.

EnBW entered into a cooperation with FUELLA last year with a 10% equity stake, securing exclusive rights to a long-term ammonia offtake agreement.

"The volumes of green ammonia secured for EnBW give us a good starting position in the market ramp-up and mark a further step on the way to a carbon-free energy supply," said Peter Heydecker, EnBW's board member for sustainable generation infrastructure.

The German government on Wednesday adopted a strategy for the import of hydrogen and derivatives.

Under Germany's national strategy, up to 70% of future hydrogen volumes will come from overseas for availability and cost reasons.

EnBW said it was searching worldwide for sources and partners for all types of hydrogen. Hydrogen derivatives can be methanol, ammonia or other e-fuels.



 

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