Yara Clean Ammonia (YCA) and Cepsa, a Madrid-based oil and gas company, have signed a deal to start a green hydrogen, ammonia corridor between the Spanish port of Algeciras and Rotterdam, the companies announced on June 14.
Under the agreement, YCA will supply Cepsa with green ammonia, which Cepsa will supply to its industrial and maritime customers in Rotterdam and central Europe using Yara’s supply network. The green ammonia will then be converted back into hydrogen for distribution at the Port of Rotterdam, where a terminal is being built to channel the clean hydrogen via pipelines to Germany, Belgium, Denmark, or the Netherlands.
“Yara Clean Ammonia and Cepsa have forged a pioneering partnership to establish a credible and robust supply chain for clean energy transformation in Europe,” said YCA President Magnus Krogh Ankarstrand. “This partnership will lay a solid foundation for industrial efforts to secure clean ammonia and hydrogen for several downstream applications in Europe while securing the clean transformation goals. We are delighted to be a part of this collaborative initiative.”
Cespa also signed a deal with Dutch gas network operator Gasunie to access its green hydrogen transport network in the country. In addition, Cepsa plans to invest $1 billion to build a 750,000 mt/y green ammonia plant at its energy park in San Rogue, Cadiz, near the port of Algeciras, with completion slated for 2027. Cespa is a partner in the Andalusian Green Hydrogen Valley, the largest green hydrogen project in Europe.
“Today’s agreements are a crucial step towards the long-term viability of the Andalusian Green Hydrogen Valley and the implementation of the first maritime corridor of sustainable fuels that will link the South with the North of Europe,” said Maarten Wetselaar, CEO of Cepsa. “Green hydrogen and its derivatives are the fastest, most viable, and competitive solution to accelerate the energy transition in heavy transport and ensure energy independence in Europe.”
The companies said their commitment to sustainable fuels is in line with the European Commission’s (EC) Fit for 55 Package, a legislative initiative to stimulate demand for alternative fuels in maritime transport to reduce greenhouse gas emissions by 2% in 2025, 6% in 2030, and 75% in 2050 compared to 2020 levels.
The development and use of sustainable fuels also contributes to several of the EC’s 2030 Agenda’s Sustainable Development Goals, the companies said, including SDG 7 (Affordable and clean energy), SDG 8 (Decent work and economic growth), SDG 12 (Responsible consumption and production), and SDG 13 (Climate action).
“The agreements announced today give our project crucial access to markets, customers, and distribution infrastructure, three key elements to unlock the potential of our Hydrogen valley,” Wetselaar added. “This is major news for the decarbonization of European shipping and industry and for the planet.”