Fertiglobe Wins Bid for H2Global Pilot Auction

Fertiglobe has been named the winning bidder for a contract valued at up to €397 million to supply the European Union with renewable ammonia from Egypt as part of the H2Global pilot auction that is funded by the Germany Federal Ministry for Economic Affairs and Climate Action. The ammonia will have a delivered price of €1,000/mt until 2033.

Abu Dhabi-based Fertiglobe is a strategic partnership between ADNOC and OCI Global. The company has committed to supplying up to 19,500 mt of renewable ammonia in 2027, subject to the actual production start date and supply availability, with increased volumes of up to 397,000 mt cumulatively by 2033 as part of the winning bid.

Fertiglobe has support from Egypt Green Hydrogen, which will supply renewable hydrogen as a feedstock to produce renewable ammonia. Egypt Green Hydrogen is a partnership between Fertiglobe, Scatec ASA, Orascom Construction, the Sovereign Fund of Egypt, and the Egyptian Electricity Transmission Company.

“This award marks a significant milestone for Fertiglobe in advancing sustainable ammonia production and a further critical step towards FID of Egypt Green Hydrogen, expected in H1 2025,” said Fertiglobe CEO Ahmed El-Hoshy. “Our selection as the winning bidder in H2Global’s pilot auction underscores our leadership in supplying low-carbon products and our commitment to shaping a more sustainable future, and I appreciate the work of our incredible team to make this award possible.”

H2Global’s “double auction” was implemented to facilitate the rapid expansion of low-carbon hydrogen and derivatives. Germany has committed €4.43 billion to the model. The auction, facilitated by hydrogen trading company and subsidiary Hintco, was launched at the end of 2022 and attracted 22 bids across five continents.