Covestro, Fertiglobe and MB Energy sign MoU to assess ammonia supply chain via Hamburg

Covestro, Fertiglobe and MB Energy have signed a Memorandum of Understanding (MoU) to examine the development of an ammonia supply chain linking production, import, storage, distribution and industrial consumption in Germany and Europe.

The agreement was signed during the visit to Germany of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates.

The three companies will assess the potential movement of ammonia produced by Fertiglobe through a proposed import terminal at Blumensand in Hamburg, which MB Energy plans to build and operate.

Hamburg terminal to provide potential import route

Under the MoU, Fertiglobe will explore supplying ammonia through the proposed Hamburg terminal and will also assess a potential equity investment in the facility.

MB Energy will contribute its energy infrastructure and logistics capabilities to the assessment, while Covestro will evaluate the potential use of ammonia delivered through the terminal as a production feedstock and to meet hydrogen supply requirements.

The companies will also examine the possibility of supplying other industrial customers in Germany and across Europe.

Companies to assess infrastructure and logistics

The collaboration will cover the commercial, technical and logistical requirements for establishing an ammonia supply route through Hamburg. Areas under consideration include terminal capacity, supply volumes, delivery arrangements and onward transportation.

The partners will also assess supporting infrastructure, including pipelines, barges and rail connections, to determine how ammonia could be transported from the terminal to industrial consumers.

The development of additional import capacity could provide another route for ammonia supplies to Germany while diversifying supply options for European industry.

Conventional and lower-carbon ammonia under consideration

The companies will assess conventional, lower-carbon and renewable ammonia as part of the collaboration. This will include consideration of the carbon intensity of potential supplies and their compatibility with applicable European regulatory and certification requirements.

The assessment will include frameworks such as the EU Carbon Border Adjustment Mechanism (CBAM), as well as requirements applicable to low-carbon and renewable hydrogen.

Ammonia is used as a feedstock by the chemical industry and can also be used as a hydrogen carrier. The companies said import, storage and transportation infrastructure will be important for making ammonia supplies available to industrial users at scale.

Ahmed El-Hoshy, CEO of Fertiglobe, said: “This MoU marks an important step in strengthening Fertiglobe’s connectivity with industrial customers in Europe and expanding routes to market for our global ammonia platform. Together with Covestro and MB Energy, we see an opportunity to support the development of a reliable and competitive ammonia supply chain through Hamburg, in line with our Grow 2030 focus on customer proximity and disciplined growth in lower-carbon ammonia.”

Dr. Markus Steilemann, CEO of Covestro, added: “Ammonia is an essential building block for the chemical industry – and its carbon footprint matters for the transformation of our production. Securing reliable, competitive and increasingly low-carbon ammonia is therefore a strategic priority for Covestro. Together with Fertiglobe and MB Energy, we are exploring an additional supply route that could support our path toward climate neutrality while strengthening supply resilience in Germany and Europe.”

Jonathan Perkins, CEO of MB Energy, commented: “Europe’s energy transition depends not only on low-carbon molecules, but on reliable infrastructure to reach industrial customers at scale. This MoU brings together complementary capabilities across supply, logistics and demand to explore a credible ammonia value chain through Hamburg. With MB Energy’s long-standing infrastructure and logistics capabilities, we aim to strengthen supply security while enabling the progressive introduction of lower-carbon ammonia in Germany and across Europe.”