Germany’s VNG, France’s Total Eren to Cooperate for Chile Ammonia Import
- November 24, 2022
- Posted by: Quatro Strategies
- Category: Cleantech
German natural gas company VNG is set to collaborate with French renewable energy company Total Eren, a subsidiary of TotalEnergies, to import green ammonia to Europe from Total’s various projects worldwide, mainly from Chile. The two companies have signed a cooperation agreement for ammonia supply to Germany and Europe from 2028. Total Eren’s H2 Magallanes project in Chile is expected to have up to 10GW of wind energy capacity that will power 8GW of electrolyzers to produce hydrogen.
The Chile project is expected to see 800,000 tons per year of hydrogen and export around 4.4 million t/year of green ammonia. The complex will also include a desalination plant. Total Eren previously said that it aims to launch hydrogen production from the facility in 2027.
With strong windspeeds and plenty of sunshine, Chile is one of the most promising locations in the globe for renewable hydrogen production. Prevailing costs are calculated at $5.4 /kg, including capital expenditure, for producing hydrogen in Chile using a 100MW proton exchange membrane electrolyzer and utilizing wind and solar power from dedicated installations.
“We will offtake the green ammonia on the German coast and make it available to its customers directly or in the form of hydrogen” VNG said. A number of import terminals for renewable ammonia are planned in north Germany, including by utilities RWE and Uniper and through a recently-announced cooperation between Air Products and Mabanaft.
The German company said its agreement with Total Eren “will govern both companies’ understanding of the overall value chain and contribution to it, including optimized shipment to Europe, transportation to final usage, and green certification”
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