Ammonia producer and trading firm Fertiglobe could acquire a stake in Germany-based MB Energy's planned ammonia import terminal in Hamburg, under a recently announced initial agreement.
Under the agreement, Fertiglobe will look to supply industrial ammonia buyer Covestro through MB Energy's 600,000 t/yr ammonia import terminal in Hamburg, which is now expected to begin operations in 2028 after various delays.
Fertiglobe owns ammonia production assets in Algeria, Egypt and the UAE totalling around 4.4mn t/yr of capacity. The firm has a number of existing offtake deals with ammonia consumers in Europe, and will explore opportunities to supply other industrial buyers through the Hamburg terminal. Fertiglobe also has plans to develop renewable ammonia in Egypt, although a final investment decision on the project has been delayed since 2023.
Covestro will use the ammonia as a feedstock in its existing production process, or to meet hydrogen supply requirements. Initially announced plans for the Hamburg terminal suggest it will connect to a cracking facility. Fertiglobe could supply conventional, renewable or low-carbon ammonia, the firm said.
MB Energy recently announced the sale of its 1.3mn t/yr ammonia plant in the US Gulf, known as Gulf Coast Ammonia (GCA), to fertilizer producer Yara. MB Energy co-owns the GCA plant with US investment firm Lotus Infrastructure Partners. The Hamburg terminal will still be built and operated by MB Energy, suggesting the company will retain a presence in the ammonia logistics business.
