Muren Guler’s Post

This week, a significant milestone was reached for #greenfuels and the #energytransition with the results of the H2Global pilot auction. In practical terms, this marks the beginning of a new global energy trade flow, from Egypt to Europe. In the long run, new energy sources will need the same, if not greater, levels of support as traditional energy sources. Witnessing this transition in real time is fascinating, and playing a small role in bringing a significant project closer to the all-important final investment decision is extremely rewarding. Highlights, including prices and volumes, are in the post below 👇

About 19 months, since the Lot 1 was announced in Nov'22. Although, more than 1000 institutions have downloaded the tender documents, however, the 22 applicants who submitted applications, are the ones whom I will call are the ones aspirants. The shortlisted 5 bidders, I call them the Green Warriors, who with their courage, conviction and intention to make a difference for the planet moved ahead in the evaluation process. Lots of learning and not just for these 5 bidders but also for HINT.CO GmbH , it's consultants, the collaborators of these 5 bidders including vendors, suppliers, contractors, consultants, transport agencies, terminal operators, and lot more. What the ecosystem has learnt in these 19 months is remarkable and with their learning and asking questions, the #policymakers have also got the privelege to understand the practical challenges. From learning the deeper interpretation of #RED II / III, #GHGemissions savings calculations, complaince requirement of #HumanResources and #EnvironmentalStandards, #ESIA requirements, #CBAM, #qualifiedrenewableenergy, #biddingzone, capturing the intent of document which resides between the lines, etc, the complete ecosystem has in a manner graduated. Above all, despite the synergy between #commonlaw and #civillaw, the finer differences which can bring nightmares due to inaccurate translation of German to English and vice-versa, are kind of nectar for the #LegalFraternity. How can someone miss the critical aspect of #funds. The challenges and apprehensions of sponsors and lenders. Yes, there is a lot of investment from stakeholders in terms of time, effort and money, but, I am sure it is worth for a better and #sustainable #future. Congratulations to HINT.CO GmbH ,H2Global Foundation, Fertiglobe and all associated institutions.

After European Hydrogen Bank auction results, market is now getting another interesting data point from 1st auction for #greenammonia from H2Global funded by 900m EUR. Well done to Fertiglobe and their project in Egypt! Most interesting datapoint is net production price of 811 Eur/t or 1000 Eur/t including transportation and other import costs.

Results of the first H2Global/Hintco tender have been published. Unfortunately, no successful SAF tender. Key problem: The RED II DA 28(5) demands a proportional allocation of the energetic value of the GH2 inputs to all outputs of a given production process (see link below). For SAF production, the use of existing Fischer-Tropsch (FT) plants (e.g. Sasol's plants in South Africa) could considerably reduce production costs (as it happened in the ammonia tender, which declared an existing ammonia production plant to be the preferred bidder). However, the FT process produces by-products, for which H2Global/Hintco do not offer subsidies. Hence, only a share of the investments in low-carbon inputs would result in SAF products that could receive subsidies, which apparantely does not provide a business case for the inputs. Solution: H2Global could buy the by-products of the FT process as well. However, shipping naptha around the world probably doesn't make sense. Hence, local use would need to be possible. Thoughts? https://lnkd.in/dP5dsYrh

The results of the H2Global pilot auction for renewable ammonia have been published 🌱 Check out more information below ⬇️ #greenenergy #ammonia #renewable #greentransition #greentransormation #future #energy

📣 Pilot auction results in first significant renewable ammonia supply for EU 📣 Today, Hintco GmbH announces Fertiglobe as the successful bidder of the first H2Global pilot auction for renewable ammonia, funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). Fertiglobe, a strategic partnership between ADNOC and OCI, will start producing renewable ammonia destined for delivery in European ports in 2027 for a maximum contract value of EUR 397 million. Key facts: 💹 Contract price: 1,000 €/t  🚢 Planned first delivery: 2027  📊 Volumes: 397,500 t  🏗 Project name: Egypt Green Hydrogen  🇪🇬 Project location: Suez Canal Economic Zone  🥇 Winning bidder: Fertiglobe  ⚡ Electricity sourcing: New build solar and wind (273MW)  🔌 Electrolyzer capacity: 100 MW  📉 Emissions reduction: Approx 75.5% 👷♂️ Jobs created: 1,330 “This auction result is a strong indication of the market potential of renewable hydrogen and its derivatives. The energy transition requires value for money, workable solutions and this first pilot auction has demonstrated that financial and procurement innovations like H2Global’s mechanism not only work but are needed to create thriving markets that motivate and mobilize private finance,” says Timo Bollerhey, CEO, Hintco and Co-creator H2Global. 👉 Press release: https://lnkd.in/ddXDzBSA 👉 Brief: https://lnkd.in/dEVaJWGP 👉 Slidedeck: https://lnkd.in/dWRMVa88

📣 Pilot auction results in first significant renewable ammonia supply for EU 📣 Today, Hintco GmbH announces Fertiglobe as the successful bidder of the first H2Global pilot auction for renewable ammonia, funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). Fertiglobe, a strategic partnership between ADNOC and OCI, will start producing renewable ammonia destined for delivery in European ports in 2027 for a maximum contract value of EUR 397 million. Key facts: 💹 Contract price: 1,000 €/t 🚢 Planned first delivery: 2027 📊 Volumes: 397,500 t 🏗 Project name: Egypt Green Hydrogen 🇪🇬 Project location: Suez Canal Economic Zone 🥇 Winning bidder: Fertiglobe ⚡ Electricity sourcing: Newly built solar and wind (273MW) 🔌 Electrolyzer capacity: 100 MW 📉 Emissions reduction: Approx 75.5% 👷♂️ Jobs created: 1,330 “This auction result is a strong indication of the market potential of renewable hydrogen and its derivatives. The energy transition requires value for money, workable solutions and this first pilot auction has demonstrated that financial and procurement innovations like H2Global’s mechanism not only work but are needed to create thriving markets that motivate and mobilize private finance,” says Timo Bollerhey, CEO, Hintco and Co-creator H2Global. 👉 Press release: https://lnkd.in/ddXDzBSA 👉 Brief: https://lnkd.in/dEVaJWGP 👉 Slidedeck: https://lnkd.in/dWRMVa88

Renewable Ammonia from Egypt to Germany: Another example of cross-border transaction of Green Energy. It is not a dream anymore. This collaboration marks a notable step towards sustainable energy solutions and demonstrates the potential of cross-border green energy transactions. Indeed, North American project developers are seeing promising opportunities to export green ammonia to the EU. With the support of the US Inflation Reduction Act and Canadian tax subsidies, NA developers are positioning themselves competitively in the global market. 

ZETA (Zero Emissions Traders Alliance) was excited to see a major breakthrough in clean commodities trade this month. Hintco GmbH announced Fertiglobe as the successful bidder of the first H2Global Foundation auction for renewable ammonia. Fertiglobe, the UAE-based fertilizer producer, will produce large amounts of green or renewable ammonia for delivery to Port of Rotterdam beginning in 2027. The contract calls for the shipment of up to 397,000 tonnes of green ammonia by 2033 from Egypt at a contract price of EUR 1,000 per tonne, including transport costs. It's a major project made possible by H2Global Foundation, whose trading company subsidiary Hintco will buy and sell the new green commodities to establish new markets. Hintco is entering long-term contracts to establish clear price signals for certified green commodities, allowing buyers and sellers to reduce risk. “This auction result is a strong indication of the market potential of renewable hydrogen and its derivatives," said Timo Bollerhey, CEO, Hintco, and Co-creator H2Global. Hintco is a growing global business. Founded with funding from Germany, it is entering into partnerships with similar entities in The Netherlands, Canada, Japan and elsewhere. They're creating trade in the new green commodities, in new market platforms supported by ZETA. ZETA will continue to build the marketplace infrastructure to enable this trade to grow and flourish, including pricing benchmarks and tradeable certificates that guarantee the origin of carbon-free fuels. Jan Haizmann Alan Mammoser Paul van Son Kutalmış Ersoy

Japan's Itochu To Explore Egyptian Green Ammonia Saudi-listed ACWA Power, the world’s largest private water desalination company, and a leader in energy transition and first mover into green hydrogen, signed an agreement to explore Japan’s Itochu co-developing and off-taking ammonia from a green hydrogen project in Egypt that would have an initial capacity of 600,000 tonnes-per-year of green ammonia. This announcement follows the framework agreement that ACWA Power signed with the Sovereign Fund of Egypt (TSFE), the Suez Canal Economic Zone (SCZone), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA) in December 2023 to develop the first phase of the plant. ACWA Power signed the framework agreement in December 2023 to outline the development of the first phase of the green hydrogen project in Egypt with a capacity of 600,000 tonnes-per-year of green ammonia, with an investment in excess of USD 4bn, with the intention of scaling up to a second phase with a potential capacity of 2 million tonnes-per-year. The framework agreement lays out the development of the first phase of a green ammonia project with a capacity of 600,000 tonnes-per-year powered by wind and solar plants, with the intention of working on a larger green hydrogen project in the country which could have a capacity of up to two million-tonnes-per-year of green hydrogen. ACWA Power has a history of developing significant renewable projects to ensure a reliable supply of clean and low-cost energy to Egypt. It has 5 assets in operation, under construction, and in advanced development in Egypt – all renewable energy projects with a total power generation capacity of 1.4 GW. 👇 https://lnkd.in/dtUB7VS7