Yara and VNG Unite to Transform Ammonia Production

  • 25-Apr-2023
  • Journalist: Jaideep

Germany: Yara Clean Ammonia, a subsidiary of Yara International ASA in the fertilizer and chemical industry, and VNG, a gas company based in Leipzig, have announced a strategic collaboration focusing on clean Ammonia. This partnership aims to actively support the implementation of Germany's Hydrogen Strategy by potentially enabling projects to introduce clean Ammonia as a Hydrogen and energy carrier to the German market, with Rostock as the point of import. The agreement was signed at the Yara plant in Poppendorf, near Rostock, and marks the first step towards a future supply agreement between the two companies. As part of the collaboration, Yara will supply clean Ammonia to VNG via the existing Hydrogen and Ammonia infrastructure in Rostock, which may be further developed in the future.

Ammonia has been acknowledged as the most convenient Hydrogen carrier for long distance transport and storage owing to its high Hydrogen density and well-established distribution infrastructure. YARA, being one of the largest Ammonia producers and distributors in the world through its fertilizer business, has made this their core competence and business. They are not only the number one fertilizer and Ammonia handler but also a developer of decarbonized Ammonia solutions.

VNG, a formidable group of companies operating in the gas and gas infrastructure industry, is committed to decarbonizing their operations. Their strategic plan named "VNG 2030" involves transitioning from conventional natural gas to renewable gases like biogas or Hydrogen and developing their storage and transportation systems. Through collaborating with another party, VNG is reinforcing their efforts to supply industrial and power sector customers in Germany with access to clean Hydrogen.

The two parties have expressed their desire to strengthen and advance their partnership with the city of Rostock, focusing on Rostock port. The aim is to transform it into a central hub for importing clean Ammonia. With YARA's proficiency and the port's existing infrastructure, which can also be expanded in the future, coupled with the convenience of its location close to the vast pipeline network of VNG's subsidiary, ONTRAS Gastransport GmbH, it is an ideal opportunity for progress.

YARA and VNG have joined forces to support the "Green Port Rostock" initiative, which aims to increase capacity and promote new clean Ammonia and Hydrogen-related industry activities. This collaboration is expected to strongly contribute to the development of the city and port of Rostock, as well as the surrounding region and the Federal State of Mecklenburg-Western Pomerania.

YARA to collaborate with German partners to promote cleaner Ammonia and decarbonization in East Germany's industrial sector. The partnership reinforces the strong Norwegian-German relationship in the energy sector, with a common objective of empowering decarbonization efforts. Germany's Energiewende and Hydrogen Strategy position it as a key player in the development and implementation of low-carbon Hydrogen and Ammonia value chains. Thanks to its import terminals in Rostock and Brunsbuttel, in collaboration with VNG, Yara is already well positioned to participate in this development. This is an important step towards promoting low-carbon Hydrogen value chains in Germany.

Related Deals