CEPSA - Compañía Española de Petróleos SA

06/14/2023 | Press release | Distributed by Public on 06/14/2023 05:32

Cepsa and Yara Clean Ammonia seal an alliance to connect southern and northern Europe with green hydrogen, in the presence of the kings of Spain and the Netherlands

Wednesday, June 14, 2023

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Clean Energies

Energy Transition

Global

  • The two companies have agreed on a strategic partnership to set up the first green hydrogen maritime corridor between the ports of Algeciras and Rotterdam for the decarbonization of European industry and maritime transport
  • The alliance incorporates Yara Clean Ammonia as the newest partner of the Andalusian Green Hydrogen Valley, where Cepsa plans to build a new green ammonia plant at its energy park in San Roque, Cádiz, near the port of Algeciras, with a 1-billion-euro investment and the creation of 3,300 jobs. It will be the largest green ammonia project in Europe with an annual production capacity of up to 750,000 tons, which will prevent up to 3 million tons of CO2 from being emitted
  • The partnership also envisages Yara Clean Ammonia supplying Cepsa with green ammonia volumes, which will allow the energy company to get a head start in establishing the green hydrogen corridor and lead the initiative to serve industrial and marine customers in Rotterdam and Central Europe
  • Cepsa also signed an agreement with Dutch company Gasunie that guarantees access to its green hydrogen transport network in the Netherlands, which will connect the Port of Rotterdam with other European industrial clusters in Germany, the Netherlands, and Belgium as part of the Delta Corridor project
  • The above agreements will consolidate the development of the Andalusian Green Hydrogen Valley, the largest green hydrogen project in Europe with 2 GW of electrolysis capacity and an overall investment of 3 billion euros
  • Their Majesties King Felipe VI and King Willem-Alexander witnessed the signing ceremony, underlining the collaboration between the two countries to accelerate the net-zero carbon energy transition and achieve energy independence for Europe
Their Majesties the King of Spain, Felipe VI, and the King of the Netherlands, Willem- Alexander, today witnessed the signing of a commercial partnership agreement between Cepsa and the Norwegian multinational Yara Clean Ammonia, a global leader in the field of clean ammonia, under which the two companies will set up the first green hydrogen 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 billion euros, 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 hydrogen that can be used both as a sustainable marine fuel and as a carrier of green hydrogen 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 hydrogen 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 hydrogen and green ammonia to industrial customers and maritime customers in Rotterdam and Central Europe.

The event was also attended by the Third Vice President and Minister for Ecological Transition and Demographic Challenge, Teresa Ribera, the Minister for Climate and Energy Policy of the Netherlands, Rob Jetten, the President of the Junta de Andalucía, Juan Manuel Moreno Bonilla, the President of the Port of Algeciras, Gerardo Landaluce, and the Director of the Port of Rotterdam International, René van der Plas, among other authorities.

The new green ammonia plant will be powered by green hydrogen produced by Cepsa and EDP at the 1 GW plant to be developed in Campo de Gibraltar. It will have an annual production capacity of up to 750,000 tons of ammonia, which can prevent 3 million tons 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 located 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.