Hintco GmbH announces Fertiglobe as the successful bidder of the first H2Global pilot auction for renewable ammonia, funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). The winning bidder, Fertiglobe, a strategic partnership between ADNOC and OCI, will start producing renewable ammonia destined for delivery in European ports in 2027 for a maximum contract value of EUR 397 million.
With this result, Europe has secured a significant supply of renewable ammonia starting at a potential 19,500 tons in 2027 subject to the start of production date and supply availability and rising up to a total of 397,000 tons cumulatively by 2033. The project marks a significant milestone in the advancement of the European renewable ammonia market and global decarbonization efforts. The pilot auction for Lot 1covering renewable ammonia was launched at the end of 2022. Lot 1 received interest from over 65 countries, with over a thousand downloads from private companies, regulatory authorities, and academic institutions. The auction for Lot 1 attracted bids from 22 companies/consortia from five continents. Fertiglobe emerged as the successful bidder among five finalists. Lots 2 and 3 covered renewable methanol and e-sustainable aviation fuel (eSAF) respectively, with the latter ending without a contract being awarded. As a result, the funds from eSAF will be allocated to the ongoing Lot 2 for renewable methanol. This offers bidders the opportunity to realize additional economies of scale.
“This auction result is a strong indication of the market potential of renewable hydrogen and its derivatives. The energy transition requires value for money, workable solutions and this first pilot auction has demonstrated that financial and procurement innovations like H2Global’s mechanism not only work but are needed to create thriving markets that motivate and mobilize private finance,” says Timo Bollerhey, CEO, Hintco and Co-creator H2Global. Fertiglobe, the winning bidder, will procure the supply of renewable hydrogen from Egypt Green Hydrogen to be used as feedstock for the production of renewable ammonia at Fertiglobe’s existing ammonia plant in Ain Sokhna. Based in Abu Dhabi, Fertiglobe is the largest producer of nitrogen fertilizers in the MENA region, and a pioneer in sustainable ammonia. Egypt Green Hydrogen, located in the Suez Canal Economic Zone, is a consortium between Scatec ASA, Fertiglobe, Orascom Construction, The Sovereign Fund of Egypt, and the Egyptian Electricity Transmission Company.
