The German Ministry of Economy announced on July 11 that it had signed a corresponding supply agreement with Fertiglobe in the UAE. From 2027 to 2032, at least 259,000 tons of ammonia will be shipped from Egypt to Germany by ship.
Fertiglobe will use wind and solar energy to produce ammonia in Egypt and eventually convert it into "green" hydrogen in Germany. To this end, Egypt is building new solar or wind power plants. Ammonia is imported because it is easier to transport than hydrogen. It is reported that the production price of ammonia is 800 euros per ton, plus transportation costs, the value of this delivery may be around 300 million euros.
Through the pilot tender, the German government has now specifically clarified the production cost of "green" hydrogen for the first time. The German Ministry of Economy said that depending on the price of ammonia, the production cost of hydrogen per kilogram is about 4.50 euros. When produced using natural gas, that is, "grey" hydrogen, it is about 3 to 4 euros. Therefore, the current price of 4.40 euros per kilogram is considered competitive.
German Economy Minister Habeck said the supply contract now concluded is an important step in Germany's transformation into an industrial base. "The availability of low-cost green energy - now also in the form of hydrogen - will continue to be an important location factor for future industry."
