Fertiglobe, located in Abu Dhabi, has declared that it has entered into an agreement with prominent German companies - Covestro, a top global producer of polymer materials, and MB Energy, a key supplier of advanced polymer materials - to investigate potential collaboration throughout the ammonia value chain in Germany and Europe.
The partnership combines Fertiglobe's worldwide ammonia production and supply strengths, MB Energy's energy infrastructure and logistics knowledge, and Covestro's role as a significant industrial ammonia consumer in Germany.
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The MoU was executed during the official trip of UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan to Germany.
According to the agreement, Fertiglobe, the largest global exporter of urea and ammonia via sea, will investigate the potential provision of ammonia through an import terminal that MB Energy, an independent and integrated energy firm, plans to construct and manage at Blumensand in Hamburg. In the collaboration, Fertiglobe will also investigate possible equity investment in the Hamburg terminal.
Covestro, a top manufacturer of premium polymer materials globally, will assess the possible offtake of ammonia supplied through the terminal for use as feedstock in its manufacturing and/or to satisfy hydrogen supply needs.
Creating an alternative pathway for ammonia imports into Germany can diversify supply alternatives and enhance the robustness of supply chains supporting European industry. The parties will additionally look into possibilities to cater to other industrial clients throughout Europe.
The parties will collaboratively evaluate the commercial, technical, and logistical needs for the possible supply of ammonia through Hamburg, which encompasses terminal capacity, volumes, delivery logistics, and subsequent transportation to industrial clients.
They will assess the supporting infrastructure and logistics, such as pipelines, barges, and rail transport.
Ammonia acts as a crucial raw material for the chemical sector and can additionally function as a hydrogen carrier. Gaining access to dependable and cost-effective lower-carbon and renewable ammonia could aid in decreasing the carbon footprint of chemical manufacturing and assist the industry's energy transition. The infrastructure for import, storage, and transport will be essential for providing these supplies on an industrial scale.
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The partnership will evaluate traditional, lower-carbon, and renewable ammonia, taking into account the carbon intensity of possible sources and compliance with relevant regulatory and certification structures, including the EU Carbon Border Adjustment Mechanism (CBAM) and applicable low-carbon and renewable hydrogen standards.
Fertiglobe CEO Ahmed El Hoshy says, “This MoU marks an important step in strengthening its connectivity with industrial customers in Europe and expanding routes to market for our global ammonia platform”.
“Together with Covestro and MB Energy, we see an opportunity to support the development of a reliable and competitive ammonia supply chain through Hamburg, in line with our Grow 2030 focus on customer proximity and disciplined growth in lower-carbon ammonia”, he states.
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Covestro CEO Dr Markus Steilemann says, "Ammonia is an essential building block for the chemical industry – and its carbon footprint matters for the transformation of our production. Securing reliable, competitive and increasingly low-carbon ammonia is therefore a strategic priority for Covestro. Together with Fertiglobe and MB Energy, we are exploring an additional supply route that could support our path toward climate neutrality while strengthening supply resilience in Germany and Europe”.
MB Energy CEO Jonathan Perkins says, “Europe’s energy transition depends not only on low-carbon molecules, but on reliable infrastructure to reach industrial customers at scale. This MoU brings together complementary capabilities across supply, logistics and demand to explore a credible ammonia value chain through Hamburg”.