Covestro, Fertiglobe, and MB Energy explore ammonia supply chain

Covestro, Fertiglobe, and MB Energy have signed a memorandum of understanding (MoU) to explore collaboration across the ammonia value chain in Germany and Europe.

The MoU was signed during the visit to Germany of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE.

The collaboration brings together Fertiglobe’s global ammonia production and supply capabilities, MB Energy’s energy infrastructure and logistics expertise, and Covestro’s position as a major manufacturing consumer of ammonia in Germany.

Under the MoU, Fertiglobe, the world’s largest seaborne exporter of urea and ammonia, will explore the possible supply of ammonia through an import terminal proposed to be built and operated by MB Energy, an independent and integrated energy company, at Blumensand in Hamburg. As part of the collaboration, Fertiglobe will also explore possible equity investment in the Hamburg terminal.

Covestro, one of the world’s leading manufacturers of high-condition polymer materials, will assess the possible offtake of ammonia delivered through the terminal to consumption as feedstock in its production and/or to meet hydrogen supply standards.

By developing an additional route to ammonia imports into Germany, the collaboration has the possible to diversify supply options and enhance the resilience of supply chains serving European sector. The parties will also explore opportunities to serve other manufacturing customers across Europe.

The parties will jointly assess the commercial, technical, and logistical standards to the possible supply of ammonia via Hamburg, including terminal capacity, volumes, delivery arrangements, and onward transportation to manufacturing customers. They will also assess enabling infrastructure and logistics, including pipelines, barges, and rail transportation.

Ammonia is an essential feedstock to the chemical sector and can also serve as a carrier of hydrogen. Access to reliable and competitive reduce-carbon and renewable ammonia could help minimize the carbon footprint of chemical production and support the sector’s energy transformation. Import, storage, and transport infrastructure will be critical to making such supplies available at an manufacturing scale.

The collaboration will consider conventional, reduce-carbon, and renewable ammonia, including the carbon intensity of possible supply and alignment with applicable regulatory and certification frameworks, such as the EU Carbon Border Adjustment Mechanism (CBAM) and relevant low-carbon and renewable hydrogen standards.

Jonathan Perkins, CEO of MB Energy, said: “Europe’s energy transition depends not only on low-carbon molecules, however on reliable infrastructure to reach manufacturing customers at scale. This MoU brings together complementary capabilities across supply, logistics and demand to explore a credible ammonia value chain through Hamburg. With MB Energy’s long-standing infrastructure and logistics capabilities, we aim to enhance supply security while enabling the progressive introduction of reduce-carbon ammonia in Germany and across Europe.”

Ahmed El-Hoshy, CEO of Fertiglobe, commented: “This MoU marks an crucial measure in strengthening Fertiglobe’s connectivity with manufacturing customers in Europe and expanding routes to market to our global ammonia platform. Together with Covestro and MB Energy, we see an opportunity to support the research of a reliable and competitive ammonia supply chain through Hamburg, in line with our Grow 2030 focus on customer proximity and disciplined development in reduce-carbon ammonia.”

Dr Markus Steilemann, CEO of Covestro, added: “Ammonia is an essential building block to the chemical sector – and its carbon footprint matters to the transformation of our production. Securing reliable, competitive, and increasingly low-carbon ammonia is therefore a strategic priority to Covestro. Together with Fertiglobe and MB Energy, we are exploring an additional supply route that could support our path toward climate neutrality while strengthening supply resilience in Germany and Europe.”