Demand is everything
Could demand mandates help the build the market for green fertilizers – by placing mandatory purchasing requirements on large-scale end users?
Could demand mandates help the build the market for green fertilizers – by placing mandatory purchasing requirements on large-scale end users?
ATOME says that it has signed a definitive offtake agreement with Yara for the purchase of the entire 260,000 t/a output of the low-carbon Villeta project. The plant will be based on 100% renewable baseload power, and will displace some 500,000 t/a of carbon dioxide equivalent. ATOME says that the agreement represents the last commercial milestone in its path to a final investment decision (FID), following the successful completion of other key commercial items, including the signing of the $465 million fixed-price, lump-sum engineering, procurement and construction contract with Casale.
Kevin Rouwenhorst of the Ammonia Energy Association (AEA) provides an overview of green ammonia projects and the associated technology options.
Kent, a global leader in integrated energy services, has been appointed by ACWA Power as owner’s engineer for the Yanbu Green Hydrogen Hub, a major green hydrogen and ammonia export facility being developed in Saudi Arabia. Situated in the port city of Yanbu on the Red Sea, the project will feature full integration across the green hydrogen value chain. This includes its own dedicated renewable power generation, desalination plants, ammonia production lines and an export terminal. At full scale, the facility will deliver up to 400,000 t/a of renewable hydrogen, converted into over 2.2 million t/a of green ammonia for international markets. With more than 4 GW of electrolysis capacity planned, the Yanbu hub is expected to be nearly twice the size of the NEOM Green Hydrogen Project.
ATOME says that the European Investment Bank (EIB), the lending arm of the European Union, has approved financing in-principle of up to $135 million for the company’s flagship Villeta Project. EIB is one of ATOME’s senior debt providers for Villeta and the announcement follows the Green Climate Fund approval earlier this month. Details of the financing will be finalised in early course, following closing of the debt package with the consortium of leading international development finance institutions. Based on the progress with financing, ATOME is projecting a final investment decision by the end of September 2025.
Jilin Electric Power says that it has commissioned one of the world’s largest green hydrogen and ammonia plants in Jilin Province. Jilin says that this is the world’s largest operating green ammonia plant, with a capacity of up to 32,000 t/a of green hydrogen and 180,000 t/a of green ammonia; the largest combined PEM and alkaline electrolyser system, combining 196 MW of alkaline electrolysis and 52 MW of PEM electrolysis, respectively; and the world’s largest block of solid-state hydrogen storage - 48,000 Nm3. The plant is fed by 800 MW of installed renewable power. The green ammonia is EU-certified under low-carbon fuel standards, and offtake agreements are in place with companies located in Europe, Japan and South Korea.
Saudi power group ACWA Power has awarded a front-end engineering design (FEED) contract to a consortium of Spanish engineering firm Tecnicas Reunidas and Sinopec Guangzhou Engineering for the development of a large green hydrogen and ammonia project in Yanbu. The project would include 4 GW of electrolysis capacity, enabling the production of 400,000 t/a of green hydrogen, which will then be converted into green ammonia for export. The plant’s scope also includes water desalination infrastructure and an export terminal to support global distribution, though renewable generation assets are excluded from the current design phase.
Norwegian state-owned power group Statkraft says that it is moving ahead with plans for a 400 MW green hydrogen and ammonia production facility in the Shetland Islands, after securing a land lease near the disused Scatsta Airport. Known as the Shetland Hydrogen Project 2, the facility will use electrolytic hydrogen to produce green ammonia for a range of industrial applications, including use as a sustainable marine fuel and to help decarbonise fertiliser production.
L&T Energy GreenTech Ltd (LTEG), a wholly-owned subsidiary of Larsen & Toubro (L&T), has entered into a joint development agreement with Japan’s Itochu Corporation of Japan to develop and commercialise a 300,000 t/a green ammonia project at Kandla in Gujarat state. Under the agreement, LTEG and Itochu will collaborate on the development of the green ammonia facility, with Itochu planning to offtake the product for bunkering applications in Singapore.
The Namibian mining town of Arandis is reportedly in discussions with Cleanergy Solutions Namibia concerning a $2.85 billion investment to develop a large-scale green ammonia production site at Aran-dis, targeting production of 200,000 t/a of ammonia in the first phase based on abundant local solar energy. The Aran-dis Town Council approved the project in 2024 and is in the process of acquiring 2,400 hectares of land for the project, which is subject to the award of an Environmental Clearance Certificate, expected in the second quarter of 2026. The construction phase of the project will begin in 4Q 2026, with operations due to begin in 2030. Local infrastructure development will include pipelines and storage tanks for water, hydrogen and ammonia, as well as port, railway, road and power infrastructure, and may include handling and storage facilities. Cleanergy Solutions is a joint venture between Olthaver & List and Belgian company, CMB.TECH. It has operated a green hydrogen pilot project near Walvis Bay since 2024.