European ammonia imports
Europe is likely to become an increasing ammonia importer over the coming years as low global ammonia prices and high European gas prices squeeze producer margins, but CBAM remains a wild card.
Europe is likely to become an increasing ammonia importer over the coming years as low global ammonia prices and high European gas prices squeeze producer margins, but CBAM remains a wild card.
A consortium including Danish companies Skovgaard Energy, Topsoe and Vestas says that it has reached an important milestone with the startup of operations in what they describe as the world’s first-of-its-kind green ammonia plant. The plant, owned by Skovgaard Energy and located in Ramme Denmark, is a demonstrator for a dynamic approach to green ammonia production, which means that the plant will adapt to the inherent fluctuations in power output from the renewable power sources in integration with the plant’s electrolysis and ammonia synthesis loop. This, say the developers, will ensure optimal production and improve the cost-effectiveness of green ammonia, ensuring less need for costly storage solutions of green hydrogen or renewable power. Production capacity is 5,000 t/a of green ammonia, with an associated CO2 reduction of 9,600 t/a. The partnership has received euro 11 million in funding from the Danish Energy Technology Development and Demonstration Program (EUDP).
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Recent developments show the Carbon Border Adjustment Mechanism (CBAM) remains active for fertilizers, but the European Commission proposes tariff reductions to offset import costs. Tariff suspension details The Commission will temporarily suspend remaining Most-Favoured-Nation (MFN) tariffs on ammonia, urea, and certain other fertilizers. Import tariffs from most-favoured nations stand at 6.5%, excluding higher staged tariffs […]
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