Cepsa partners with Dutch companies to supply green ammonia – sources

MADRID, Feb 20 (Reuters) – Spain’s Cepsa on Monday signed an agreement with three Dutch companies to supply environmentally friendly ammonia to a terminal in the port of Rotterdam, two sources familiar with the matter said.

The ammonia, produced from hydrogen generated by renewables, could be exported or converted back into green hydrogen for industry in northwestern Europe, the sources said, speaking under the guise of anonymity because the agreement is not yet public. .

Green ammonia is an emerging technology that should play an important role in transporting green hydrogen, although its feasibility has not yet been proven on a large scale.

Cepsa signed the deal with private companies HES International, Gasunie Waterstof Holding and Vopak LNG, the sources said. Dutch companies are developing the ACE terminal in Rotterdam, which will be the largest in Europe for green ammonia.

Cepsa declined to comment, while the other companies were not immediately available for comment. The sources did not provide financial details on the project.

Ammonia is widely used to make agricultural fertilizers.

Cepsa intends to start the first exports from Spain in 2027 and the scope of the agreement will cover sustainable marine fuels and hydrogen as an end product, the sources said.

The deal is a step closer to securing clean energy for Europe and boosting the green hydrogen corridor from the city of Algeciras in southern Spain to Rotterdam at a time when Spain aspires to become a major player in the sector.

Cepsa plans to invest 3,000 million euros ($3,300 million) in the development of green hydrogen in Huelva and Algeciras, in one of the largest green hydrogen projects in Europe.

(Reporting by Jesús Aguado; Additional reporting by Ron Bousso; Editing in Spanish by Flora Gómez)