Green ammonia from Norway: EnBW launches marketing process for volumes from the SkiGA project
One of the first emission-free production facilities in Europe / Each year from 2027, 100,000 metric tons of green ammonia are expected to be available to the market; interested parties can register.
Artistic impression of SkiGA-project, source: Fuella
Karlsruhe. It is a project that sends a signal for the future decarbonization of industrial processes: EnBW Energie Baden-Württemberg AG (EnBW) is starting to market 100,000 metric tons of green ammonia from the Skipavika Green Ammonia (SkiGA) project in western Norway, making it one of the first suppliers to the market. The volumes are planned to be available from 2027 and can be transported to various delivery locations, such as the port of Skipavika in Norway, to selected terminals in Western Europe or to industrial sites, including in Germany. Interested companies should register online to bid for the corresponding capacity. The process starts on July 26, 2024.
By using local green electricity, SkiGA is one of Europe’s first emission-free green ammonia production facilities and is thus doing important and pioneering work to create climate-friendly production processes in the energy sector and within industrial processes in general. The planned electrolyzer has an output of 130 megawatts. The climate-friendly production process can cut annual carbon emissions by around 240,000 metric tons compared to the use of gray ammonia.
EnBW entered into a cooperation with Norwegian partner FUELLA in 2023 with a 10% equity stake in order to support the investment decision as well as secure exclusive rights to a long-term offtake agreement. Just how important SkiGA’s position is in relation to the competition recently became clear in the first auction of the European Hydrogen Bank: The project was one of seven to receive funding.
Peter Heydecker, Board Member for Sustainable Generation Infrastructure, underlined the importance of the cooperation with FUELLA: “We are delighted to have found a partner in FUELLA in Norway because together we can gain essential experience in developing and upscaling a green gas infrastructure. The volumes of green ammonia secured for EnBW give us a good starting position in the market ramp-up and mark a further step on the way to a carbon-free energy supply.”
Background:
Due to the massive need for decarbonization in industry and energy production, a major part of the hydrogen required in Germany in the future will have to be imported. Both green and low-carbon hydrogen and its derivatives will be required in significantly larger quantities than those produced by SkiGA. EnBW is therefore searching worldwide for economical sources and reliable partners for all types of hydrogen.
Ammonia is also a carrier of hydrogen as it can be converted back using cracking technology. Compared to hydrogen, ammonia benefits from the fact that the market and logistics are already available and well established.
Ammonia is one of the most widely produced and transported chemicals in the world. It is used in fertilizer production, as a chemical feedstock and as a low-carbon fuel.
The production of gray ammonia causes more than 1% of global CO₂ emissions. Compared to gray ammonia, green ammonia avoids 2.4 metric tons of CO₂ per ton of ammonia and is therefore an ideal CO₂-neutral fuel.
About EnBW
With a workforce of over 28,000 employees, EnBW is one of the largest energy supply companies in Germany and Europe. It supplies electricity, gas and water together with infrastructure and energy-related products and services to around 5.5 million customers. In the company’s transformation from a traditional energy provider to a sustainable infrastructure group, the expansion of renewable energy sources and of the distribution and transportation grids for electricity and gas are cornerstones of EnBW’s growth strategy and the focus of its investment spending. By 2030, EnBW plans gross investment of 40 billion euros, around 90 percent of which is earmarked for Germany. By the end of 2025, renewables are set to account for more than half of EnBW’s generation portfolio. The aim is to phase out coal by the end of 2028. These are key milestones on the company’s way to achieving climate neutrality by 2035. www.enbw.com
Pressekontakt
Christopher Engelmann
+49 170 6530869
christopher.engelmann@enbw.com