Iberdrola and seaborne trader of anhydrous ammonia Trammo have signed a green ammonia framework agreement for the purchase and sale of up to 100,000 tonnes of green ammonia per year from 2026.
The contract will enable Iberdrola to construct the first green ammonia plant in southern Europe, which will be viable thanks to European funding, and involves a total investment of €750m.
The facility will be supported by the construction of 500MW of new renewable energy, as green ammonia will meet all the requirements of the EU’s Delegated Act.
It will also contribute to the creation of industrial and innovation opportunities in a growing market with a high export component.
Iberdrola is currently developing green ammonia and methanol plants in Europe, the United States, Australia and other markets, and this first plant consolidates the company’s global growth strategy in green hydrogen and its derivatives.
The construction of the development will generate up to 3.500 jobs, mostly filled by local workers, Iberdrola said.
In addition, during its operations and maintenance phase, the project will create more than 50 jobs.
The plant’s green ammonia production will be purchased and sold by Trammo to contribute to the decarbonization of northern European industry.
This project aims to kickstart the European green hydrogen corridor.
Southern Europe has a large renewable potential that allows it to supply competitive green energy to decarbonise the various energy-intensive heavy industry all across the continent such as the Netherlands, Germany or France, Iberdrola said.
Iberdrola’s global head of green hydrogen Millán García-Tola said: “When you bring together one of the world’s largest renewable energy developers and the world’s largest seaborne trader of anhydrous ammonia, innovative projects like this can quickly become viable.
“For the past year, we have been operating Europe’s largest green hydrogen plant, which gives us the experience and understanding of the processes and technology to scale-up quickly to these larger projects.
“Reducing industrial emissions with the supply of green ammonia presents opportunities in the coming years and Iberdrola wants to be at the centre of this market, delivering real projects to develop a more sustainable production chain and achieve decarbonization goals.
“We are already in talks with Trammo to look at similar projects in other markets.”