Picture: Uniper.

Source: Uniper press release

Novatek and Uniper signed a term sheet on the long-term supply of large volumes of low-carbon ammonia. These supplies will be delivered to Uniper’s markets in Germany and North-West Europe. Novatek is developing a major low-carbon ammonia production facility on the Yamal Peninsula in northwestern Siberia, making use of the vast local gas reserves. Carbon dioxide formed during the natural gas-to-hydrogen production process will be captured and stored using a highly efficient underground storage infrastructure (CCS).

Uniper is planning an ammonia import terminal in Wilhelmshaven which will be equipped with a storage facility and a cracker operating with green power. The imported low-carbon ammonia can thus be transformed into gaseous hydrogen – and it will be fed into the future German hydrogen pipeline system. Low-carbon ammonia can also be supplied directly as a feedstock and as a fuel. Modern technology, beneficial geologic parameters and highly optimized production and logistics will help drive the carbon footprint of the supplied ammonia well below the threshold of the EU Taxonomy.

Klaus-Dieter Maubach, CEO of Uniper: “This project would cover a significant share of the low carbon hydrogen demand in Germany. Uniper is committed to reaching carbon neutrality in its European Generation business by 2035. Decarbonized and low-carbon gases such as hydrogen will play a major role in achieving these goals. Germany, like many other heavily industrialized countries, will rely on hydrogen imports, as the demand for hydrogen will exceed domestic production capacities. Hence, we actively set up global collaborations and partnerships and plan Wilhelmshaven as a major hydrogen hub. I firmly believe that Novatek, which has already developed a state-of-the-art LNG facility on Yamal, will deliver one of the world’s most efficient and cleanest ammonia export projects providing Europe with ammonia and hydrogen featuring a carbon footprint below the EU Taxonomy threshold.”