German utility RWE has signed a memorandum of understanding with Windhoek-based developer Hyphen for offtake of 300,000t/yr of green ammonia from Namibia.

Hyphen received preferred bidder status to develop Namibia’s flagship $9.4bn green hydrogen export project, which could produce up to 1mn t/yr of ammonia by 2027.

RWE plans to construct an ammonia terminal at Brunsbuettel in Germany by 2026, which the firm says could be a port of destination for Namibian ammonia. The terminal is expected to have an initial capacity of 300,000t/yr, with potential to rise to 2mn t/yr at a later stage.

3mn t/yr – German target for hydrogen imports by 2030

Ammonia has clear advantages over hydrogen as storage and transportation of the former is easier, more efficient and cheaper than the latter, according to RWE.

“Green molecules are the only way for many industries in Germany to achieve their climate targets,” says Ulf Kerstin, chief commercial officer for RWE’s supply and trading arm.

“In the long term, Germany's demand for them will have to be met mainly through imports. That is why we are looking forward to progressing the offtake discussions with Hyphen—to bring green ammonia from Namibia to Germany.”

Germany aims to import 3mn t/yr of hydrogen by 2030, and officially started the first tender process for green ammonia under its H2Global scheme at the end of November.

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Author: Polly Martin