Cepsa strikes green hydrogen supply chain deal with ACE Terminal
Spanish energy company Cepsa will send green ammonia produced in southern Spain to a planned import terminal in Rotterdam.
PHOTO: (left to right) Vopak business development manager of new energies Hans de Willigen, Minister for Climate and Energy of the Netherlands Rob Jetten, Cepsa chief executive Maarten Wetselaar, Gasunie director of participation and business development Ulco Vermeulen. ACE Terminal
Green ammonia will be shipped to the upcoming ACE Terminal in Rotterdam, where ACE will either convert it into green hydrogen for consumption by various industries in northwest Europe or keep it as green ammonia and supply it as a bunker fuel.
The ACE Terminal is being built by three Dutch companies: HES International, Gasunie Waterstof Holding and Vopak LNG. It is expected to be Europe’s largest green ammonia import terminal by 2026.
Green ammonia is a zero-emission fuel produced by combining nitrogen with hydrogen. It has attracted a lot of attention from the shipping industry as it looks for future energy forms to cut greenhouse gas emissions.
The agreement with Cepsa is the first supply deal ACE Terminal has signed. Cepsa is building two energy parks in the southern Spanish region of Andalusia, which will see 2 gigawatts (GW) of electrolysis capacity split between production plants in Huelva and Cadiz. The plants are expected to be up and running by 2026-2027 and produce around 300,000 mt/year of green hydrogen.
“It constitutes a significant milestone for the European Hydrogen Strategy in developing hydrogen corridors between south and north Europe," said the Dutch Minister for Climate and Energy Rob Jetten.
"This will enable us to reduce reliance on fossil fuels and to achieve the Dutch decarbonization and climate goals”.
European countries have doubled down on hydrogen and other clean fuels to become more energy independent, after Russia's invasion of Ukraine upended existing energy supply channels.
By Debarati Bhattacharjee
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