EnBW markets green ammonia from SkiGA project in Norway

German energy supply company EnBW is starting to market 100,000 metric tons of green ammonia from the Skipavika Green Ammonia (SkiGA) project in Norway.

The volumes are planned to be available from 2027, and according to EnBW, can be transported to various delivery locations, such as the port of Skipavika in Norway, to selected terminals in Western Europe or to industrial sites, including in Germany.

Interested companies should register online to bid for the corresponding capacity, and the process starts on July 26, 2024.

By using local green electricity, SkiGA is said to be one of Europe’s first emission-free green ammonia production facilities. EnBW said the planned electrolyzer has an output of 130 megawatts (MW) and the production process can cut annual carbon emissions by around 240,000 metric tons compared to the use of gray ammonia.

The SkiGA project is managed by ammonia development company Fuella. In 2023, EnBW entered into an investment agreement with SkiGA, under which EnBW acquired a 10% equity stake in the project and secured exclusive offtake rights for green ammonia.

Peter Heydecker, Board Member for Sustainable Generation Infrastructure, commented on the cooperation with Fuella: “We are delighted to have found a partner in FUELLA in Norway because together we can gain essential experience in developing and upscaling a green gas infrastructure. The volumes of green ammonia secured for EnBW give us a good starting position in the market ramp-up and mark a further step on the way to a carbon-free energy supply.”

In April 2024, SkiGA entered into a 15-year power purchase agreement (PPA) with power producer Hafslund to produce green ammonia in Skipavika. The agreement covers the delivery of up to 130 MW of renewable, emission-free power.

Cornel Russi, CEO of SkiGA, noted at the time: “Green ammonia is a prerequisite for the green transition and reduction in greenhouse gas emissions. The agreement with Hafslund gives the project access to renewable power at competitive prices providing crucial predictability for the production of green ammonia and the creation of new jobs in Skipavika.”