Iberdrola inks supply deal for EUR 750m green ammonia project

US commodities trader Trammo inc has agreed to procure up to 100,000 tonnes of green ammonia, starting from 2026, from a plant that Spanish utility Iberdrola SA (BME:IBE) is planning to build in southern Europe.

The off-take framework agreement will facilitate the construction of the plant which is worth EUR 750 million (USD 805.27m) in investment and is backed by European funding, Iberdrola said on Friday.

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Trammo will sell the contracted fuel to support industry decarbonisation in northern Europe and the creation of the European green hydrogen corridor that is meant to connect the continent's south with industrial centres of demand in the north such as Germany, the Netherlands, and France.

The operation of the green ammonia plant will be powered by 500 MW of new renewable energy capacity.

The construction process will create up to 3,500 jobs, while more than 50 will be needed for the operation and maintenance of the facility.

The two companies are discussing similar projects in other markets, said Iberdrola's Global Head of Green Hydrogen, Millan Garcia-Tola.

Currently operating Europe's largest green hydrogen plant, a 20-MW electrolyser at its Puertollano plant in Spain, Iberdrola is also working on more than 60 hydrogen projects in eight countries, including green ammonia and green methanol developments in Iberia, the US, and Australia.