VNG AG, the German gas company based in Leipzig, and Total Eren, a leading renewable energy Independent Power Producer (“IPP”) based in Paris, are pleased to announce that they are joining forces for the development of green ammonia imports in Europe.
To this end, both partners have signed a cooperation agreement concerning the import of green hydrogen in the form of ammonia from Total Eren’s green H2 projects worldwide and its sale to the German and European markets from 2028 onwards.
Through their cooperation, both companies are committed to making a significant contribution to the supply of carbon-neutral energy in Germany and Europe.
With its VNG 2030+ strategy, VNG is pursuing an ambitious path for its commitment to renewable and decarbonised gases. VNG and its subsidiaries are currently planning the construction of a hydrogen and carbon hub in the Rostock area and therefore will be adding value locally and regionally in East Germany. In addition, VNG H&V is in talks with customers to evaluate the future requirements for green ammonia and green hydrogen, and to conclude initial purchase agreements.
Total Eren, for its part, has a strong track record in renewable energy worldwide and is currently working on several large-scale green H2 projects globally, including in South America, Africa, and Australia. With intrinsic low costs of power generation, these projects will aim to deliver clean and reliable energy globally in the form of green H2 or its derivatives.
At the end of 2021, Total Eren secured land positions and launched feasibility studies in order to build a large-scale green hydrogen project in Chile’s Magallanes region . The H2 Magallanes Project will consist of up to 10-gigawatts of wind turbines in Chile and thus generate 800,000 tons of hydrogen per year, which will be partially transported by ship from Patagonia to Germany as green ammonia.
VNG Handel & Vertrieb (H&V), the trading and sales subsidiary of VNG, and Total Eren’s cooperation will enable VNG to offtake the green ammonia on the German coast and make it available to its customers directly or in the form of hydrogen from 2028 onwards.
The cooperation agreement will govern both companies’ understanding of the overall value chain and contribution to it, including optimised shipment to Europe, transportation to final usage, and green certification, while partnering with best-in-class suppliers and relying on relevant stakeholders’ support.
Total Eren and VNG H&V are also involved in the H2Global Foundation alongside other companies to develop a functioning hydrogen market in Germany.
“For us, cooperating to build a green H2 import value chain with such a renowned renewable energy player as Total Eren is another important step on the journey to a functioning hydrogen market in Germany and Europe. Because we want to be and remain one of the most important energy providers in Germany, as well as a reliable partner for our customers, starting from our core competencies in gas and critical infrastructure, we are working along the entire gas value chain on a sustainable, secure supply and, in the long term, climate-neutral energy system of the future” explains Ulf Heitmüller, Chief Executive Officer of VNG AG.
“We are delighted to commence our cooperation on hydrogen exports with VNG, a powerful player in the German market. I am confident that our fruitful alliance will efficiently tackle today’s energy challenges while fulfilling the needs of VNG’s customers. I also want to thank our Total Eren teams for their dedication and commitment to advancing our green H2 projects worldwide and in particular the H2 Magallanes project in Chile, a great example of our ambitious vision for the deployment of green hydrogen globally” added David Corchia, Chief Executive Officer of Total Eren.
