A unit of German wind power-focused renewables company PNE AG (ETR:PNE3) and chemicals producer Omnia Group (PTY) Ltd. will explore the onsite production of up to 100,000 tonnes of green ammonia per year in South Africa.
PNE's wholly-owned subsidiary WKN Windcurrent S.A (PTY) Ltd and Omnia have signed a memorandum of understanding (MoU) and will start to jointly explore and plan the green ammonia plants.
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Under the pact, WKN will develop the necessary equipment to combine wind and solar power generation with the production of ammonia.
Establishing a green ammonia production site with the planned capacity will offset 180,000 tonnes of carbon dioxide emissions per year, reduce South Africa's reliance on energy imports and help decarbonise local industries.
"The fact is that onsite production of green ammonia will significantly reduce our CO₂ emissions, embed sustainability into our products, and support the country’s green energy journey,” said Omnia's chief executive Seelan Gobalsamy.
PNE's chief executive Markus Lesser commented that solutions relating to power-to-X play an important role for the company along with the expansion of its own electricity generation from wind and solar.
South Africa is seeking to utilise its abundant solar and wind energy resources to build a green hydrogen economy. The country's Just Energy Transition Programme together with partners such as Germany has raised around USD 8.5 billion (EUR 7.84bn) to accelerate the switch to renewables.
(USD 1 = EUR 0.923)