Iberdrola to Construct Southern Europe’s First Green Ammonia Plant in Landmark Partnership with Trammo

This project aims to kickstart the European green hydrogen corridor

(IN BRIEF) Iberdrola and Trammo have signed a major agreement to advance the use of green ammonia in Europe. The agreement involves the purchase and sale of up to 100,000 tons of green ammonia per year, making it the largest framework agreement of its kind in Europe. Iberdrola will construct the first green ammonia plant in southern Europe with an investment of 750 million euros, supported by 500 MW of renewable energy. The project aims to create jobs, decarbonize industries, and stimulate innovation in the growing market. The collaboration between Iberdrola and Trammo is a significant step in Europe’s transition to renewable energy.

(PRESS RELEASE) BILBAO, 9-Jun-2023 — /EuropaWire/ — Iberdrola (BME: IBE), a Spanish multinational leader in clean energy and a pioneer in the deployment of smart grids, and Trammo, the world’s largest seaborne trader of anhydrous ammonia, have signed a groundbreaking framework agreement for the purchase and sale of up to 100,000 tons of green ammonia annually, marking the largest such agreement in Europe to date. The partnership is a significant step towards decarbonizing heavy industries across the continent.

Under the agreement, Iberdrola will construct the first green ammonia plant in southern Europe, with an investment totaling 750 million euros. This milestone project is made possible through European funding and aligns with Iberdrola’s global growth strategy in green hydrogen and its derivatives. The company is already developing green ammonia and methanol plants in Europe, the United States, Australia, and other markets.

The construction of the plant will create approximately 3,500 jobs, predominantly filled by local workers. Furthermore, over 50 jobs will be sustained during the plant’s operations and maintenance phase.

The green ammonia plant will be supported by the establishment of 500 MW of new renewable energy capacity, ensuring compliance with the EU’s Delegated Act requirements. Additionally, the project will stimulate industrial and innovation opportunities in a growing market with significant export potential.

Trammo will purchase and sell the plant’s green ammonia production, contributing to the decarbonization efforts of northern European industries. The aim is to establish the European green hydrogen corridor, leveraging the renewable potential of southern Europe to provide competitive green energy for decarbonizing energy-intensive sectors throughout the continent, including the Netherlands, Germany, and France.

“When you bring together one of the world’s largest renewable energy developers and the world’s largest seaborne trader of anhydrous ammonia, innovative projects like this can quickly become viable. For the past year, we have been operating Europe’s largest green hydrogen plant, which gives us the experience and understanding of the processes and technology to scale-up quickly to these larger projects,” says Millán García-Tola, Iberdrola’s Global Head of Green Hydrogen.

“Reducing industrial emissions with the supply of green ammonia presents opportunities in the coming years and Iberdrola wants to be at the centre of this market, delivering real projects to develop a more sustainable production chain and achieve decarbonization goals. We are already in talks with Trammo to look at similar projects in other markets,” said García-Tola.

Green ammonia offers versatile applications in decarbonizing various industries such as fertilizer production and chemical manufacturing. Furthermore, substantial market growth is anticipated for new uses, including marine fuel and facilitating green hydrogen transportation. Compared to traditional grey ammonia plants, green hydrogen production reduces water consumption by over 40%.

Iberdrola, with 40 GW of installed renewable energy capacity worldwide, plans to double its portfolio to 80 GW by 2030. The company has already established itself as a pioneer in green hydrogen production, operating three plants by 2023, including Europe’s largest electrolyzer (20 MW) at the Puertollano plant in Spain. Iberdrola is actively developing over 60 hydrogen projects in eight countries, encompassing green ammonia and green methanol initiatives in regions such as Iberia, the United States, and Australia.

With its extensive experience as a seaborne trader and a strong position in anhydrous ammonia distribution since 1965, Trammo is playing a vital role in the industry’s transition to decarbonization. The company is committed to making substantial volumes of green ammonia available in the market by 2035.

The collaboration between Iberdrola and Trammo represents a significant milestone in Europe’s renewable energy transition, driving the adoption of green ammonia and facilitating the decarbonization of vital industrial sectors.

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SOURCE: Iberdrola, S.A.


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