April 24, 2023
Yara and VNG with commitment for cooperation in ammonia
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.
“We are happy about the commitment with YARA to explore opportunities for a cooperation in clean ammonia. This is a great example for the reinforcing Norwegian-German partnership in the energy sector. Our common objective is to empower the decarbonization in East Germany, especially in the industrial sector”, stated Ulf Heitmüller, CEO of VNG.
“The German Energiewende and the Hydrogen Strategy makes Germany a CenterPoint for development and implementation of the low carbon hydrogen and ammonia value chains. Yara is already well positioned to take part in this development with our import terminals in Rostock and Brunsbüttel, and we see the collaboration with VNG as a very important step to help developing the low carbon hydrogen value chains in Germany”, said Magnus Ankarstrand, President of Yara Clean Ammonia, Norway.
Ammonia does not emit carbon dioxide during combustion and is seen as an effective future energy source. Blue ammonia is derived from a carbon capture and storage process (CCS), while green ammonia is produced carbon free by using hydrogen sourced from renewable energy as feedstock. The term clean ammonia comprises both blue and green ammonia.
- Press release - Yara and VNG in German
- Info on Yara in Germany
- Video – Have you heard about Clean Ammonia (external site)
About Yara Clean Ammonia (YARA)
Yara Clean Ammonia is uniquely positioned to enable the hydrogen economy in a market expected to grow substantially over the next decades. We aim at significantly strengthening our leading global position as the world’s largest ammonia distributor, unlocking the green and blue value chains, and driving the development of clean ammonia globally.
Building on Yara's leading experience within global ammonia production, logistics and trade, Yara Clean Ammonia works towards capturing growth opportunities in low-emission fuel for shipping and power, carbon-free food production and ammonia for industrial applications.
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. Yara Clean Ammonia is headquartered in Oslo, Norway. More at: www.yaracleanammonia.com
VNG is a group of over 20 companies active in the European energy industry, employing more than 1,600 people. As a gas importer and wholesaler as well as an operator of critical gas infrastructure, the Group, which is headquartered in Leipzig, is central to the secure supply of gas in Germany. With the “VNG 2030+” strategy, VNG is also pursuing an ambitious path for the market ramp-up of renewable and decarbonised gases such as biogas and hydrogen, paving the way for a sustainable, secure supply and, in the long term, climate-neutral energy system of the future. VNG’s investments in infrastructure and green gas projects are primarily in Central and Eastern Germany, with the aim of making a significant contribution to structural change as a company firmly anchored in the region. More at: www.vng.de
Press contact information
Edina Ringdal Wickholm
Mobile phone: +47 47063736
Land line: +49 341 4435946