German gas company VNG AG and Paris-based renewable independent power producer (IPP) Total Eren have joined forces to import and sell green ammonia to the German and European markets from 2028.
The supplies will come from Total Eren’s green hydrogen projects across the globe, such as the one in Chile, the French firm said on Tuesday.
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At present, Total Eren is working on several large-scale projects to produce green hydrogen and its derivatives in South America, Africa, and Australia. Last year, it secured land and initiated feasibility studies for a gigawatt-scale green hydrogen and ammonia development in Chile.
The H2 Magallanes scheme envisages the installation of up to 10 GW of wind power that will support 8 GW of electrolysis to enable the production of 800,000 tonnes of hydrogen annually. Some of the output will be shipped to Germany as green ammonia, Total Eren said.
VNG plans to offtake the green ammonia through its trading and sales arm VNG Handel & Vertrieb (H&V) and offer it to customers directly or in the form of hydrogen.
The German gas company aims to switch to renewable and decarbonised gases as part of its 2030+ strategy. In line with the plan, the company will build a hydrogen and carbon hub in the Rostock area on Germany's north coast and seek to sign deals for purchasing green ammonia and hydrogen.