Germany has awarded the first green ammonia contract under its H2Global hydrogen derivative import scheme, with Fertiglobe winning at Eur1,000/mt ($1,088/mt) for delivery to Northwest Europe.

The auction result is significant as it is a strong indication of the market potential of renewable hydrogen and its derivatives demonstrating that financial and procurement innovations like H2Global’s mechanism can proceed forward and create the market for the new fuel.

The supply will start with a potential 19,500 mt in 2027, subject to production start date and supply availability from Fertiglobe’s plant in Egypt, rising to a total of 397,000 mt cumulatively by 2033, for a maximum contract value of Eur397 million.

A final investment decision for Scatec’s Egypt Green Hydrogen project, which will supply hydrogen for the ammonia production at Fertiglobe’s existing Ain Sokhna plant, is expected in the first half of 2025.

Source: Platts