Norwegian-German collaboration on green energy
Ammonia is well suited for carbon-neutral electricity generation. With this, EnBW will be equipped to offer green ammonia for both internal decarbonization initiatives and their customers, including the local and international maritime sector.
EnBW Energie Baden-Württemberg AG (EnBW) has entered into an Investment Agreement with one of Europe’s most advanced project for emission-free ammonia production, Skipavika Green Ammonia (SkiGA), in Western Norway. This is a step in the direction towards realizing the EU’s, Germany’s and Norway’s climate goals by developing climate neutral Hydrogen products.
The Investment Agreement underscores EnBW’s strong commitment, allowing exclusive long-term offtake rights to green ammonia and reflecting this through a 10% equity stake in the project. This commitment by EnBW will play a crucial role in expediting the project's path to a financial investment decision.
Green Ammonia is a key building stone in stepping up the Hydrogen (H2) market and Decarbonization efforts in industry and energy sector. Ammonia can be either converted to hydrogen for combustion in heat and power generation or directly used for this purpose. Therefore it is well suited for carbon-neutral electricity generation. With this, EnBW will be equipped to offer green ammonia for both internal decarbonization initiatives and their customers, including the local and international maritime sector. The agreement is made on commercial terms and marks a breakthrough in the effort to commercialize H2 products such as green ammonia. Green H2 products are a key component in EUs Green Deal.
“EnBW is committed to becoming a carbon-neutral power generation leader. Our collaboration on green ammonia, aligned with German, Norwegian and the EU goals, signifies a strategic investment in carbon-neutral solutions. The Nordic region is poised to be a top supplier to Europe's carbon-free energy landscape, complementing its existing position as a reliable, stable energy partner of choice for Europe. This agreement underscores the potential of Norwegian-German collaboration in green energy and industry”, says Peter Heydecker (Executive Director Trading) of EnBW.
Skipavika Green Ammonia facility will be in Gulen municipality, near the Mongstad refinery on the west coast of Norway. Once completed in 2026, it will be Europe's inaugural emissions-free ammonia production site. The project has secured grid connection and is in advanced talks for Power Purchase Agreements.
“The agreement with EnBW ensures the development of the plant as EnBW will play a crucial role in commercializing the green ammonia sourced from SkiGAs production for long term offtake.”, says Cornel Russi, CEO of SkiGA. Hence, it marks a milestone in the use of green ammonia as part of a future carbon free energy system”, he adds. SkiGAs plant will have an annual production capacity of 100,00 tonnes.
The development of the SkiGA is led by the Norwegian project developer, Fuella AS, specializing in Hydrogen and Ammonia projects. Notably, Allianz Capital Partners, on behalf of Allianz insurance companies committed to provide funding of EUR 20 million to support Fuella’s project pipeline towards execution and to accelerate the business development, reinforcing the project's significance.
“Fuella convinced us as partner with their hands-on approach, their industry expertise, and their great network with other strong partners, e.g. Allianz. We in EnBW want to be a long-term partner for Norway's ambitions to develop the future energy mix, both offshore wind, green hydrogen and ammonia. I believe this project will have substantial effects on local, national, and international scales. We are very excited to be part of this project”, adds Heydecker of EnBW.