Hintco and Fertiglobe sign landmark renewable ammonia supply contract worth EUR 397M.
Hintco GmbH announces that it has formally signed a contract with Fertiglobe, the successful bidder in the first H2Global pilot auction for renewable ammonia. This landmark agreement marks a significant advancement in Europe’s renewable energy future, setting a precedent for future auctions under the H2Global framework.
Under the terms of the contract, Fertiglobe will begin producing renewable ammonia, with the first shipments scheduled for delivery to European ports in 2027. The contract, valued at up to EUR 397 million, will secure an initial supply of a potential 19,500 tons of renewable ammonia in 2027, with total deliveries expected to rise to a cumulative 397,000 tons by 2033, contingent on production and supply conditions. For the project’s host country, Egypt, it means 273 MW of new renewable electricity generation will be built to power Egypt Green Hydrogen, Fertiglobe’s supplier of renewable hydrogen feedstock for the production of renewable ammonia.
This agreement represents a pivotal moment in the evolution of the European renewable ammonia market and in global decarbonization efforts. It comes at a time when discussions about the future role of clean hydrogen in the energy mix have reached new heights. This contract signing demonstrates that it is possible to build projects and markets that align with the Paris climate goals.
The success of the pilot auction also underscores the global collaboration required to drive large-scale renewable energy transition projects. Initial price signals from the auction suggest that as production scales up, costs will decrease, paving the way for more competitive pricing in future rounds.
Timo Bollerhey, Chief Executive Officer of Hintco, remarked on the contract signing:
This is a significant moment for Hintco that proves progress is possible for the clean hydrogen market.
“As exciting as this moment is, my team is already focused on what comes next: new tenders for both clean hydrogen purchase and sales agreements. Time is short, and we must build both infrastructure and markets rapidly and efficiently if we’re to avoid climate catastrophe.”
Haroon Rahmathulla, Chief Operating Officer of Fertiglobe, added:
This award is a significant milestone for Fertiglobe as the first renewable ammonia producer to secure a long term offtake and a critical step towards achieving a final investment decision for Egypt Green Hydrogen.
“We are pleased to leverage the support of H2Global, which renders our investment in sustainable ammonia economically viable, to advance crucial decarbonization technology while upholding our disciplined growth strategy.”
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Hintco and Fertiglobe sign landmark renewable ammonia supply contract worth EUR 397M. source
