Hintco GmbH has announced Fertiglobe as the successful bidder in the inaugural H2Global pilot auction for renewable ammonia, a project funded by the German Government. Fertiglobe, a strategic partnership between ADNOC and OCI, will commence production of renewable ammonia for delivery starting in 2027, with a maximum contract value of EUR 397 million. This renewable ammonia will be delivered to the Port of Rotterdam and subsequently sold by Hintco in standardised quantities through annual auctions. Initial supply is projected at 19,500 tonnes in 2027, potentially increasing to a cumulative total of 397,000 tonnes by 2033, subject to production and supply availability.
Hintco acts as a ‘market maker’ to foster the development of markets for clean hydrogen and low-emission fuels. By purchasing hydrogen from early-stage production facilities and selling it to end-users, Hintco bridges the gap between supply prices and demand prices through grants. At this nascent stage, buyers and sellers often have differing expectations regarding price, volume, and contract terms. Hintco employs H2Global’s double-auction mechanism to reconcile these expectations, thereby mitigating risks and providing the necessary certainty for producers to finance projects and for end-users to purchase these products on acceptable terms. This first phase of the double-sided auction is funded by the German Government, which contributed EUR 900 million to compensate for price differences.
Overzicht van de Rotterdamse haven – Martens Multimedia
Fertiglobe will source renewable hydrogen from Egypt Green Hydrogen, which will serve as feedstock for the production of renewable ammonia at Fertiglobe’s existing ammonia plant in Ain Sokhna. The pilot auction has set the initial price signal at a contract price of EUR 1,000 per tonne, including delivery to Europe, with a net price of EUR 811 per tonne for renewable ammonia. The produced renewable ammonia will achieve an emissions intensity reduction of approximately 75.5 percent compared to ammonia produced from unabated fossil fuels. The emissions savings associated with the contractual maximum supply commitment of 397,000 tonnes over seven years are equivalent to the annual emissions of 62,000 cars.
This landmark agreement marks a significant step towards establishing a robust market for renewable ammonia, supporting global efforts to reduce carbon emissions and transition to sustainable energy sources.
For more information visit www.portofrotterdam.com
