Yara and VNG with commitment for cooperation in ammonia
Yara Clean Ammonia (Yara), a Yara International ASA company in the fertilizer and chemical industry, and VNG, a Leipzig-based gas company, plan a close collaboration in the field of clean ammonia that will actively support the ambitious implementation plans outlined in the German Hydrogen Strategy, according to Yara's release.
Today Ulf Heitmüller, CEO of VNG and Magnus Ankarstrand, President of Yara Clean Ammonia, signed an official cooperation agreement at the Yara plant in Poppendorf, near Rostock. It is a first step towards a future supply agreement between both parties and can eventually enable further projects to facilitate clean ammonia as a hydrogen and energy carrier into the German market, with Rostock as point of import. Clean ammonia can be supplied from YARA to VNG. The hydrogen and ammonia infrastructure in the German hanseatic city Rostock will be used and could be further developed.
Ammonia is recognized as the most convenient hydrogen carrier for long distance transport and storage, both because of its hydrogen density but also because the distribution infrastructure is in place. This is the core competence and business of YARA being one of the largest ammonia producers- and distributors in the world through its fertilizer business, and the number one fertilizer and ammonia handler and developer of decarbonized ammonia solutions.
VNG is a strong group of companies active in the gas and gas infrastructure sector aiming at decarbonizing their business. In line with its strategy “VNG 2030”, VNG wants to implement the transformation from today’s natural gas to renewable gases such as biogas or hydrogen which also includes their storage and transport. The collaboration between both parties will strengthen VNG´s efforts to make clean hydrogen available to customers in the industry and the power sector in Germany.
Furthermore, both parties wish to intensify and develop the collaboration with the city of Rostock and specifically Rostock port to turn the port into a hub for clean ammonia imports. A perfect starting point with YARA’s expertise and already existing and potentially extendable infrastructure as well as the proximity to the extensive pipeline network of ONTRAS Gastransport GmbH, a subsidiary of VNG.
The collaboration between YARA and VNG would significantly promote and facilitate the ongoing work related to “Green Port Rostock” expanding capacity, initiating new industry activities connected to clean ammonia and hydrogen and thus, contributing to the development of the city and port of Rostock, the surrounding region, and the Federal State of Mecklenburg-Western Pomerania.
Yara Clean Ammonia operates the largest global ammonia network with 15 ships and access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world, through Yara International. Yara Clean Ammonia’s revenues and EBITDA for 2022 were USD 4,428 million and USD 249 million respectively.
VNG is a group of over 20 companies active in the European energy industry, employing more than 1,600 people.
