Yara Clean Ammonia (YARA), a fertilizer and chemical company of Yara International ASA, and Leipzig-based gas company VNG have planned to cooperate closely in the field of climate-friendly ammonia to actively support the German hydrogen strategy.
Cooperation agreement between the companies
On April 24, 2023, Ulf Heitmüller, CEO of VNG, and Magnus Ankarstrand, President of Yara Clean Ammonia, signed an official cooperation agreement at YARA's plant in Poppendorf near Rostock. This is the first step towards a future supply agreement between the two companies and should enable follow-up projects to bring climate-friendly ammonia to the German market as a hydrogen and energy carrier. Here, the port of the Hanseatic city of Rostock will be used to import the ammonia, with the climate-friendly ammonia to be supplied by YARA to VNG. Rostock is already using hydrogen and ammonia infrastructure and could be further expanded.
Climate-friendly ammonia
Due to its hydrogen density and existing distribution infrastructure, ammonia is considered the most suitable carrier for the long-distance transport and storage of hydrogen. YARA is one of the world's largest ammonia producers and traders, as well as a leading fertilizer company. The development of decarbonized ammonia solutions is one of its core competencies.
Ammonia emits no carbon dioxide when burned and is considered an effective energy source of the future. Blue ammonia is obtained through a carbon capture and storage (CCS) process, while green ammonia is produced carbon-free by using hydrogen as a feedstock from renewable energy sources. The term "climate-friendly ammonia" covers both blue and green ammonia.
VNG 2030+" strategy
The VNG gas group is positioned along the entire gas value chain with its business units Biogas, Trading & Sales, Transport and Storage. As part of its "VNG 2030+" strategy, VNG will in future focus strongly on the development and ramp-up as well as the transport and storage of green gases such as biogas or hydrogen. To make climate-friendly hydrogen available to its own customers from industry and the municipal utility and redistributor environment in Germany, VNG entered cooperation with YARA.
In order to make the port of Rostock a hub for the import of climate-friendly ammonia* in eastern Germany, the two companies plan to intensify and expand their cooperation with the city of Rostock and the port of Rostock in particular. This project builds on YARA's expertise, the existing and potentially expandable infrastructure in Rostock, and the proximity to the extensive pipeline network of VNG subsidiary ONTRAS Gastransport GmbH.
