The ammonia price will be linked to major European and global price benchmarks, the company said.
The low-carbon ammonia will be produced at Obsky Gas Chemical Plant using carbon capture and storage (CCS) technology. It will be supplied at Uniper’s planned terminal at Wilhelmshaven, Germany.
The terminal will be equipped with an ammonia cracker, powered by renewable energy. The ammonia will be used as a hydrogen carrier, so hydrogen will be released and supplied into Germany’s hydrogen pipeline system as well as used directly as green feedstock and fuel.
Novatek plans to launch the Obsky Gas Chemical Plant, located in the Yamalo-Nenetsky region, in 2027. Its annual capacity will amount to 2.2 mln tonnes of ammonia and 130k tonnes of hydrogen.
“Currently, Notatek is investigating the feasibility of a low carbon ammonia and hydrogen plant with CCS technology, and signing of an agreement on key terms confirms growing demand on low carbon products. It pushes us towards the final investment decision on this project. The plant will be located in the vicinity of our LNG cluster on the Yamal peninsula, which will minimize costs and supply the most competitive “clean” energy resources to the international market,” Novatek chairman Leonid Mikhelson was quoted as saying.