German government-backed Hintco GmbH has formally signed a contract with Fertiglobe, the successful bidder in the first H2Global pilot auction for renewable ammonia, according to a news release.
Under the terms of the contract, Fertiglobe will begin producing renewable ammonia, with the first shipments scheduled for delivery to European ports in 2027. The contract, valued at up to EUR 397 million, will secure an initial supply of a potential 19,500 tons of renewable ammonia in 2027, with total deliveries expected to rise to a cumulative 397,000 tons by 2033, contingent on production and supply conditions. For the project’s host country, Egypt, it means 273 MW of new renewable electricity generation will be built to power Egypt Green Hydrogen, Fertiglobe’s supplier of renewable hydrogen feedstock for the production of renewable ammonia.
The success of the pilot auction also underscores the global collaboration required to drive large-scale renewable energy transition projects, the release states. Initial price signals from the auction suggest that as production scales up, costs will decrease, paving the way for more competitive pricing in future rounds.
Hintco is a wholly owned subsidiary of the H2Global Foundation, and is running tenders for clean fuels funded by the German Federal Ministry for Economic Affairs and Climate Protection. Hintco’s core task is the preparation and implementation of competitive bidding processes for the purchase and sale of clean hydrogen-based products and other low-emission fuels, shaped by the H2Global double-sided auction mechanism.
Germany is preparing a much larger EUR 3.5bn tender for renewable hydrogen, according to the Hintco website. The Dutch Ministry of Economic Affairs and Climate is also preparing a tender, which would make it the second government to provide funding for an H2Global tender.
Timo Bollerhey, Chief Executive Officer of Hintco, remarked on the contract signing: “This is a significant moment for Hintco that proves progress is possible for the clean hydrogen market. As exciting as this moment is, my team is already focused on what comes next: new tenders for both clean hydrogen purchase and sales agreements. Time is short, and we must build both infrastructure and markets rapidly and efficiently if we’re to avoid climate catastrophe.”
Haroon Rahmathulla, Chief Operating Officer of Fertiglobe, added: “This award is a significant milestone for Fertiglobe as the first renewable ammonia producer to secure a long term offtake and a critical step towards achieving a final investment decision for Egypt Green Hydrogen. We are pleased to leverage the support of H2Global, which renders our investment in sustainable ammonia economically viable, to advance crucial decarbonization technology while upholding our disciplined growth strategy.”
