Mabanaft and Pattern Energy Ink LOI for Green Ammonia Partnership

Mabanaft, an energy company, has formalized a letter of intent with Pattern Energy, a US-based entity, on March 18, 2024. This letter of intent (LOI) outlines the mutual interest of Mabanaft and Pattern Energy in exploring the possibility of supplying green ammonia to Mabanaft. Pattern Energy proposes to manufacture green ammonia at the Port of Argentia in Newfoundland and Labrador, Canada, commencing operations in 2027. The envisaged green ammonia production entails establishing a new facility with an estimated daily production capacity of 400 tonnes of ammonia. As part of the LOI, Mabanaft also aims to assess the prospect of becoming a co-investor alongside Pattern Energy, thereby sharing expertise in ammonia and infrastructure. The green ammonia, derived from wind energy and hydroelectricity, is anticipated to significantly contribute to furnishing industry in northern Germany and beyond with renewable energy.

The LOI was formalized at Mabanaft's headquarters in Hamburg, in the presence of German Federal Minister for Economic Affairs and Climate Action, Mr. Habeck, Canadian Minister for Energy and Natural Resources, Mr. Wilkinson, and Hamburg's Senator for Economic Affairs, Dr. Leonhard. Additionally, Mr. Habeck and a political delegation from Canada visited Mabanaft as part of the jointly organized German-Canadian Hydrogen and Ammonia Producer-Offtaker Symposium in Hamburg on March 18, 2024. The delegation's itinerary included visits to various Hamburg-based companies engaged in hydrogen production, storage, or utilization.

The proposed collaboration aims to channel energy from Canadian wind to Hamburg. In the future, hydrogen and its derivatives are envisioned to be generated using wind energy from the region, and subsequently transported by ship to Hamburg, Germany's hydrogen hub. The robust industrial infrastructure in Hamburg ensures supply security for energy-intensive industries. Through collaborative efforts between the Port of Hamburg and Canadian partners, the requisite infrastructure on the Canadian front will be developed.

Green ammonia sourced from Canada is deemed indispensable in propelling the hydrogen industry's expansion in Germany. The forthcoming "New Energy Gate" in Hamburg is poised to assume a pivotal role in facilitating Mabanaft's green ammonia imports. Envisaged as Mabanaft's primary hub for importing, storing, and processing renewable energy-based fuels, the New Energy Gate Hamburg is a strategic initiative. In November 2022, Mabanaft unveiled plans to construct an import terminal for green energy at the Port of Hamburg, with US-based Air Products slated as the anchor customer.

Mabanaft is firmly convinced that hydrogen and its derivatives will play a pivotal role in the energy landscape of industrialized nations. The LOI with Pattern Energy underscores Mabanaft's unwavering commitment to this trajectory. Pattern Energy expresses enthusiasm about collaborating closely with Mabanaft to advance the Argentia Renewables project in Newfoundland & Labrador. As a trailblazer in renewable energy across North America, Pattern Energy seeks collaboration with European energy industry leaders to unlock the full potential of green fuel production and export infrastructure in North America. Positioned as an early entrant in the green hydrogen domain, the Argentia Renewables project is poised to emerge as a critical element in Europe's energy transition.