Novatek has signed an agreement with Uniper for the long-term supply of large volumes of low-carbon ammonia to be delivered to Uniper’s markets in Germany and North-West Europe.
Under the long term agreement, 1.2 million/tonnes of low-carbon ammonia to be supplied to large parts will be cracked to gaseous hydrogen.
Novatek is developing a major low-carbon ammonia production facility on the Yamal Peninsula in northwestern Siberia, using the vast local gas reserves. CO2 formed during the natural gas-to-hydrogen-to-ammonia production process will be captured and stored using a highly efficient underground storage infrastructure (CCS).
Uniper plans an ammonia import terminal in Wilhelmshaven to be equipped with a storage facility and a cracker operating with green power.
The imported low-carbon ammonia can thus be transformed into gaseous hydrogen, and it will be fed into the future German hydrogen pipeline system. Low-carbon ammonia can also be supplied directly as a feedstock and as a fuel.
Klaus-Dieter Maubach, CEO of Uniper, said, “Germany, like many other heavily industrialised countries, will rely on hydrogen imports, as the demand for hydrogen will exceed domestic production capacities. Hence, we actively set up global collaborations and partnerships and plan Wilhelmshaven as a major hydrogen hub.”
Leonid Mikhelson, Chairman of Novatek’s Management Board, added, “The signing of term sheets for long-term supply demonstrates growing demand for low-carbon products, which is an essential precursor for the Final Investment Decision on this project.”