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Cepsa and Yara Clean Ammonia to connect southern and northern Europe with green H2

Cepsa and the Norwegian multinational Yara Clean Ammonia formed a partnership under which the two companies will set up the first green H2 maritime corridor between southern and northern Europe, connecting the ports of Algeciras and Rotterdam as part of efforts to boost decarbonize industry and maritime transport on the continent.

As part of the Andalusian Green Hydrogen Valley, Cepsa will develop a green ammonia plant at its San Roque Energy Park in Cadiz that will be operational in 2027. With an investment of €1 B, it will be the largest plant in Spain and one of the largest in Europe. The project, which could include potential partners, will create 3,300 jobs—including direct, indirect and induced—and a new market in Algeciras for green ammonia, a product derived from green H2 that can be used as a sustainable marine fuel and as a carrier of green H2 for its transportation to distant locations.

The alliance with Yara Clean Ammonia will help establish a safe, resilient, and cost-efficient supply chain for delivering green ammonia and paves the way for Cepsa to deliver the first green H2 molecules to its customers by using Yara Clean Ammonia’s global supply base and logistical footprint. This will in turn allow the energy company to start marketing green H2 and green ammonia to industrial customers and maritime customers in Rotterdam and Central Europe.

The new green ammonia plant will be powered by green H2 produced by Cepsa and EDP at the 1-GW plant to be developed in Campo de Gibraltar. It will have a production capacity of up to 750,000 tpy of ammonia, which can prevent 3 MMt of CO2 emissions. Yara, a global leader in ammonia production, has extensive experience in this market, which will ensure the development of a viable green energy corridor in Europe. Cepsa will offer its extensive experience in producing fuels and its knowledge of the maritime sector to support its customers' decarbonization strategy.

Yara Clean Ammonia is part of Yara International, which has its largest ammonia and fertilizer plant in the Netherlands. Since 1929, the Dutch Yara site is in Sluiskil on the Ghent-Terneuzen canal, a major deep-sea waterway opening into the North Sea and connecting European inland rivers and railway all over Europe. This largest fertilizer production site in western Europe is highly integrated and belongs to the top of most efficient plants on world level.

At the same ceremony, Cepsa also signed an agreement with Hynetwork Services, the Gasunie subsidiary that owns the green H2 transport network in the Netherlands. With this agreement, Cepsa’s green H2 receives access to that network which, additionally, will connect the Port of Rotterdam with other European industrial clusters in Germany, the Netherlands and Belgium as part the Delta Corridor project.

The partnerships represent a new step in the development of the Andalusian Green Hydrogen Valley, the largest project presented in Europe, with a capacity of 2 GW to produce 300,000 t of green H2. In addition, it enables the development of a H2 value chain, promoting the decarbonization of industry in Andalusia and the development of a new sustainable marine fuels industry with the capacity to export to the rest of Europe.

With this commercial cooperation agreement, Cepsa will have greater capacity to supply H2 and green ammonia to its customers in Northern Europe. The Spanish energy company has an agreement with ACE Terminal (a consortium of the companies Gasunie, HES International, and Vopak) to distribute green ammonia to the planned import terminal in the Port of Rotterdam, for final use in industry after converting the ammonia back into green, or for direct use. In addition, on May 10, Cepsa announced a collaborative agreement with GETEC to supply it with green H2 and its derivatives, which GETEC will distribute to industrial customers in different European countries. The company provides heating, cooling and electrical services to industrial customers in various sectors (chemical, automotive, food, pharmaceutical, polymer and paper industries) in Germany, the Netherlands, Switzerland and Italy.

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