ABU DHABI (ALETIHAD)
Abu Dhabi-based Fertiglobe, Covestro and MB Energy have signed an agreement to explore the development of an ammonia supply chain through Hamburg, including the import, storage, distribution, and potential industrial use of ammonia in Germany and wider Europe.
The memorandum of understanding (MoU) was signed during the visit to Germany of UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan, according to a joint statement by the three companies.
Under the agreement, Fertiglobe will explore supplying ammonia through an import terminal proposed to be built and operated by MB Energy at Blumensand in Hamburg. Fertiglobe will also examine a potential equity investment in the terminal, the statement said.
Covestro, a manufacturer of polymer materials and a major industrial consumer of ammonia in Germany, will evaluate the potential purchase of ammonia delivered through the terminal for use as feedstock in its production processes and/or to meet hydrogen supply requirements.
The proposed arrangement brings together Fertiglobe's ammonia production and global supply capabilities, MB Energy's infrastructure and logistics expertise, and Covestro as a potential industrial buyer. The companies will assess conventional, lower-carbon and renewable ammonia supplies.
The statement said the additional import route could diversify Germany's ammonia supply options and strengthen supply chains serving European industry. The partners will also explore opportunities to supply other industrial customers across Europe.
Ammonia is used as a feedstock by the chemical industry and can also serve as a carrier for hydrogen. The companies said access to reliable and competitive lower-carbon and renewable ammonia could help reduce the carbon footprint of chemical production.
The partners will also consider the carbon intensity of potential ammonia supplies and their alignment with applicable regulatory and certification frameworks, including the EU Carbon Border Adjustment Mechanism and requirements relating to low-carbon and renewable hydrogen.
Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe, said the MoU would strengthen the company's links with industrial customers in Europe and expand routes to market for its global ammonia business.
“Together with Covestro and MB Energy, we see an opportunity to support the development of a reliable and competitive ammonia supply chain through Hamburg, in line with our Grow 2030 focus on customer proximity and disciplined growth in lower-carbon ammonia,” El-Hoshy said.
Dr Markus Steilemann, CEO of Covestro, said securing reliable, competitive and increasingly low-carbon ammonia was a strategic priority for the company because ammonia is an essential input for the chemical industry and its carbon footprint has implications for the transformation of Covestro's production.
“Together with Fertiglobe and MB Energy, we are exploring an additional supply route that could support our path toward climate neutrality while strengthening supply resilience in Germany and Europe,” Steilemann said.
Jonathan Perkins, CEO of MB Energy, said Europe's energy transition depended both on lower-carbon molecules and on infrastructure capable of delivering them to industrial customers at scale.
“This MoU brings together complementary capabilities across supply, logistics and demand to explore a credible ammonia value chain through Hamburg,” Perkins said, adding that MB Energy aimed to strengthen supply security while enabling the progressive introduction of lower-carbon ammonia in Germany and across Europe.