German energy company Uniper has suspended plans to import large volumes of low-carbon ammonia from Russia and switched its focus back to LNG in response to the security of supply crisis triggered by the invasion of Ukraine.

Uniper had in December agreed initial terms with Novatek, Russia’s largest independent oil and gas producer, to import up to 1.2mn t/yr of ammonia under a long-term contract. It had planned to convert the imported ammonia into hydrogen via a cracker to be installed as part of a proposed hydrogen hub at the north German port of Wilhelmshaven.

But talks with Novatek have been put “on hold” and Uniper has reactivated plans to develop an LNG import terminal at Wilhelmshaven—having last year shelved the plan in favour of the hydrogen hub project.

1.2mn t/yr – Ammonia import volume previously agreed with Novatek

Uniper’s move comes after German chancellor Olaf Scholz last week called for the “rapid” development of two LNG import facilities as part of a plan to shore up his country’s energy security and reduce its 60pc reliance on Russian gas.

“In order to further diversify the portfolio and as requested by the German government, Uniper plans to bring LNG directly to the German market. Also, an LNG regasification plant is required, which does not yet exist in Germany. Uniper has therefore resumed its planning for a LNG terminal in Wilhelmshaven,” the company says.

The implications for the Wilhelmshaven hydrogen hub, which is an important project for Germany’s transition to clean hydrogen, are unclear.

“These [LNG] activities will be closely linked to our plans to make Wilhelmshaven a green energy hub, with green ammonia import and hydrogen production to fulfil more than 10pc of the German hydrogen demand in 2030. However, talks with the Russian company Novatek on the import of ammonia are put on hold,” Uniper says in a statement.

The German government was keen to stress the switch back to LNG would not derail hydrogen plans.

“Our current short-term needs can dovetail with what is already needed long-term for the transformation to succeed. An LNG terminal that today receives gas can tomorrow be used to import green hydrogen,” Scholz says.

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Author: Stuart Penson