Iberdrola and Trammo Sign Largest EU Agreement for the Export of Green Ammonia
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- It will enable the production and distribution of up to 100,000 tons of green ammonia per year starting in 2026, positioning both companies as first movers.
- The agreement will facilitate the construction of Europe’s first industrial green ammonia plant with an investment of 750 million euros.
Iberdrola, a world leader in green energy, and Trammo, the world largest seaborne trader of anhydrous ammonia, have signed the largest green ammonia framework agreement in Europe to date for the purchase and sale of up to 100,000 tons of green ammonia per year from 2026.
The contract will enable Iberdrola to construct the first green ammonia plant in southern Europe, which will be viable thanks to European funding, and involves a total investment of 750 million euros. Iberdrola is currently developing green ammonia and methanol plants in Europe, the United States, Australia as well as other markets, and this first plant consolidates the company’s global growth strategy in green hydrogen and its derivatives.
The construction of the plant will generate up to 3.500 jobs, mostly filled by local workers. In addition, during its operations and maintenance phase, the project will create more than 50 jobs.
The green ammonia plant will be supported by the construction of 500 MW of new renewable energy, as green ammonia will meet all the requirements of the EU’s Delegated Act. It will also contribute to the creation of industrial and innovation opportunities in a growing market with a high export component.
The plant’s green ammonia production will be purchased and sold by Trammo to contribute to the decarbonization of northern European industry.
This project aims to kickstart the European green hydrogen corridor. Southern Europe has a large renewable potential that allows it to supply competitive green energy to decarbonize the various energy-intensive heavy industry all across the continent such as the Netherlands, Germany or France.
See related article: Iberdrola Signs €1 Billion Loan with EIB to Accelerate Energy Transition in Europe
“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. 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,” says Millán García-Tola, Iberdrola’s Global Head of Green Hydrogen.
“Reducing industrial emissions with the supply of green ammonia presents opportunities in the coming years and Iberdrola wants to be at the centre of this market, delivering real projects to develop a more sustainable production chain and achieve decarbonization goals. We are already in talks with Trammo to look at similar projects in other markets,” said García-Tola.
Green ammonia can be used in the decarbonization of existing applications, such as fertilizer production or chemical industries. In addition, huge market growth is expected in new uses of this product, for example, as a marine fuel or to make green hydrogen transport viable as a carrier. Green hydrogen reduces water consumption by more than 40% when compared to the processes required in a grey ammonia plant.
Iberdrola is a world leader in renewable energies with 40 GW installed worldwide and the ambition to double its current portfolio to 80 GW by 2030. The company became a pioneer in green hydrogen production with three plants in operation by 2023 and Europe’s largest electrolyzer (20 MW) at its Puertollano plant in Spain.
Iberdrola is developing more than 60 hydrogen projects in 8 countries, including green ammonia and green methanol in geographies such as Iberia, the United States and Australia.
As the world largest seaborne trader with a global position lead in the commercialization and the distribution of anhydrous ammonia since 1965, Trammo is taking an active role in the transition to decarbonize the industry sector helping to make available in the market significant volumes of green ammonia by 2035.