Covestro, Fertiglobe and MB Energy ink MoU to explore ammonia supply chain in Europe

Leading chemical, fertilizer and energy firms Covestro, Fertiglobe and MB Energy today signed a Memorandum of Understanding (MoU) to explore collaboration across the ammonia value chain in Germany and elsewhere in Europe.

The pact brings together Fertiglobe’s global ammonia production and supply capabilities, MB Energy’s logistics expertise and energy infrastructure, and Covestro’s position as a major industrial consumer of ammonia in Germany.

Under the MoU, Fertiglobe, will explore the potential supply through an import terminal set to be built and operated by MB Energy at Blumensand, Hamburg.

As part of the collaboration, Fertiglobe will also explore potential equity investment in the Hamburg terminal.

Covestro, a leading manufacturer of polymer materials, will evaluate the potential offtake of ammonia delivered through the terminal for use as feedstock in its production and/or to meet hydrogen supply requirements.

“By developing an additional route for ammonia imports into Germany, the collaboration has the potential to diversify supply options and strengthen the resilience of supply chains serving European industry,” the trio said in a joint press release.

“The parties will also explore opportunities to serve other industrial customers across Europe [and] jointly assess the commercial, technical and logistical requirements for the potential supply of ammonia via Hamburg, including terminal capacity, volumes, delivery arrangements and onward transportation to industrial customers.

“They will also evaluate enabling infrastructure and logistics, including pipelines, barges and rail transportation.”

The collaboration will consider conventional, lower-carbon and renewable ammonia, including the carbon intensity of potential supply and alignment with applicable regulatory and certification frameworks, and relevant low-carbon and renewable hydrogen requirements, the three firms noted.

Fertiglobe CEO, Ahmed El-Hoshy, said: “This MoU marks an important step in strengthening Fertiglobe’s connectivity with industrial customers in Europe and expanding routes to market for our global ammonia platform.

His counterpart at Covestro, Markus Steilemann, commented: “Ammonia is an essential building block for the chemical industry – and its carbon footprint matters for the transformation of our production.

“Securing reliable, competitive and increasingly low-carbon ammonia is therefore a strategic priority for Covestro.

“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.”

Of note, the MoU was signed during the visit to Germany of the President of the UAE, His Highness Sheikh Mohamed bin Zayed Al Nahyan.