Fertiglobe, Covestro and MB Energy to explore ammonia supplies via Hamburg in Germany
Abu Dhabi-based Fertiglobe has signed a preliminary agreement with Germany’s Covestro and MB Energy to explore cooperation in the ammonia supply chain through a planned import terminal in Hamburg, Germany. The National reports.
MB Energy plans to build and operate an ammonia import terminal in Hamburg. Fertiglobe will consider supplying ammonia through the facility, as well as potential investment in a stake in the terminal. The agreement was signed during UAE President Sheikh Mohamed’s visit to Germany.
Covestro’s role
Covestro will assess the possibility of purchasing ammonia delivered through the Hamburg terminal. The company may use it as a feedstock in polymer production and to meet its hydrogen needs.
The parties to the agreement will jointly analyse the commercial, technical and logistical conditions for potential supplies. In particular, they will assess the terminal’s capacity, volumes, delivery terms and the onward transportation of ammonia to industrial customers. The parties will also consider the necessary infrastructure, including pipelines, barges and rail transport.
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Ammonia for industry
Fertiglobe chief executive Ahmed El-Hoshy said the memorandum is a step towards strengthening the company’s ties with industrial consumers in Europe and expanding market access routes for its global ammonia platform. According to him, the companies see an opportunity to support the development of a reliable and competitive supply chain through Hamburg.
Covestro chief executive Markus Steilemann called securing reliable, competitive and increasingly less carbon-intensive ammonia supplies a strategic priority for the company. Ammonia, which consists of nitrogen and hydrogen, is used as a feedstock for the chemical industry and as a hydrogen carrier; it can also be used as a low-carbon fuel in transport, energy, steel, cement and fertiliser production.
Fertiglobe has production capacity of approximately 6.6 million tonnes of urea and merchant ammonia at four subsidiaries in the UAE, Egypt and Algeria. Adnoc’s investment arm XRG owns 95.1% of Covestro’s shares following last year’s deal.
