Spanish energy company Iberdrola has signed a framework agreement with Trammo for the purchase and sale of up to 100,000 mt/y of green ammonia beginning in 2026. The contract will enable Iberdrola to construct the first green ammonia plant in southern Europe at a projected investment of €750 million, the company announced on June 9.
“When you bring together one of the world’s largest renewable energy developers and the world’s largest seaborne trader of anhydrous ammonia, innovative projects like this can quickly become viable,” said Millán García-Tola, Iberdrola’s Global Head of Green Hydrogen.
Iberdrola is currently developing green ammonia and methanol plants in Europe, the US, Australia, and other markets. Iberdrola and Spanish fertilizer and chemicals producer Fertiberia Group SA inked an agreement in 2020 to construct a plant to produce green hydrogen at Puertollano in Spain’s Ciudad Rea province (GM July 31, 2020). The two companies then extended their partnership to build three additional green hydrogen projects between 2023 and 2027 (GM Oct. 30, 2020).
“For the past year, we have been operating Europe’s largest green hydrogen plant, which gives us the experience and understanding of the processes and technology to scale-up quickly to these larger projects,” García-Tola added.
Iberdrola said the construction of the new plant will generate up to 3,500 jobs, with 50 more jobs created for the facility’s operation and maintenance. The plant’s green ammonia production will be purchased and sold by Trammo. The plant will be supported by the construction of 500 MW of new renewable energy and is planned to kickstart the European green hydrogen corridor, which comprises more than 60 projects in eight countries.
“Reducing industrial emissions with the supply of green ammonia presents opportunities in the coming years and Iberdrola wants to be at the center of this market, delivering real projects to develop a more sustainable production chain and achieve decarbonization goals,” said García-Tola. “We are already in talks with Trammo to look at similar projects in other markets.”