Covestro, Fertiglobe and MB Energy to Explore New Options for Ammonia Supply Chain
Covestro, Fertiglobe, and MB Energy have signed a Memorandum of Understanding (MoU) to explore collaboration across the ammonia value chain in Germany and Europe. The MoU was signed during the visit to Germany of His Highness Sheikh Mohamed bin Zayed Al Nahyan, president of the United Arab Emirates. The collaboration combines Fertiglobe’s global ammonia production and supply capabilities, MB Energy’s energy infrastructure and logistics, and Covestro’s position as a consumer of ammonia in Germany.
Under the MoU, Fertiglobe, reportedly the world’s largest seaborne exporter of urea and ammonia, will explore the potential supply of ammonia through an import terminal proposed to be built and operated by MB Energy, an independent and integrated energy company, at Blumensand in Hamburg, Germany. As part of the collaboration, Fertiglobe will also explore potential equity investment in the Hamburg terminal. For its part, Covestro will evaluate the potential offtake of ammonia delivered through the terminal for use as feedstock in its production and/or to meet hydrogen supply requirements.
By developing an additional route for ammonia imports into Germany, the collaboration has the potential to diversify supply options and strengthen the resilience of supply chains serving European industry. The parties will also explore opportunities to serve other industrial customers across Europe.
The parties will jointly assess the commercial, technical, and logistical requirements for the potential supply of ammonia via Hamburg, including terminal capacity, volumes, delivery arrangements, and onward transportation to industrial customers. They will also evaluate enabling infrastructure and logistics, including pipelines, barges, and rail transportation.
The collaboration will consider conventional, lower-carbon, and renewable ammonia, including the carbon intensity of potential supply and alignment with applicable regulatory and certification frameworks, such as the EU Carbon Border Adjustment Mechanism (CBAM) and relevant low-carbon and renewable hydrogen requirements.
To learn more about Fertiglobe, visit: fertiglobe.com. Additional information about MB Energy can be found at .mbenergy.com. Learn more about Covestro at covestro.com.
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