Stefan Krumpelmann, Argus Media
EnergiesNet.com 11 23 2022

German gas firm VNG is planning to import renewable ammonia from Chile and elsewhere later this decade through an agreement with French renewables firm Total Eren.

The two firms have signed a co-operation agreement for ammonia supply to German and European markets from 2028 onwards. The supply will stem from Total Eren’s projects worldwide, with the firm specifically referring to the H2 Magallanes plant in Chile. H2 Magallanes is the biggest project planned in Chile and is expected to feature up to 10GW of wind energy capacity that will power 8GW of electrolysers. This would allow for production of 800,000 t/yr of hydrogen and export around 4.4mn t/yr of green ammonia. The complex will also include a desalination plant. Total Eren previously said that it aims to launch hydrogen production from the facility in 2027.

Chile boasts ample sunshine and strong windspeeds, making it one of the most promising locations for renewable hydrogen production globally. Argus calculates prevailing costs for producing hydrogen in Chile using a 100MW proton exchange membrane electrolyser and utilising wind and solar power from dedicated installations at $5.40/kg, including capital expenditure.

VNG said it would “offtake the green ammonia on the German coast and make it available to its customers directly or in the form of hydrogen”. A number of import terminals for renewable ammonia are planned in north Germany, including by utilities RWE and Uniper and through a recently-announced co-operation between industrial gas firm Air Products and energy trading company Mabanaft.

VNG’s agreement with Total Eren “will govern both companies’ understanding of the overall value chain and contribution to it, including optimised shipment to Europe, transportation to final usage, and green certification”, the German firm said.

argusmedia.com 11 22 2022