Topsoe has signed an agreement with power-to-x developer First Ammonia reserving 500MW of its solid oxide electrolysers.
The agreement provides for an initial purchase of 500MW of solid oxide electrolyser cell (SOEC) units and is expandable to up to 5GW over the lifetime of the agreement.
The first 500MW of produced by Topsoe will be installed in First Ammonia’s green ammonia projects at sites in northern Germany and in the south-west US, with operation planned for 2025.
The signing of the capacity reservation agreement between the parties will “kickstart the global market for green ammonia”, Topsoe stated.
Topsoe’s SOEC manufacturing plant is to be built in Herning, Denmark, and has recently received FID from the board.
At 5GW, this would be the largest ever electrolyser reservation of any type, Topsoe said.
Joel Moser, CEO of First Ammonia, said: “We have the utmost confidence in Topsoe and its storied scientists and engineers, which is why we have chosen Topsoe as our partner.
“With their cutting edge SOEC electrolysers and industry leading ammonia synthesis, we will develop facilities around the world to produce millions of tonnes of green ammonia from water and air.”
Roeland Baan, CEO of Topsoe, said: “We need to accelerate the development and industrialization of sustainable solutions, while also increasing energy independence, which is why we are delighted to partner with First Ammonia on the global development of its green ammonia facilities.
“With this agreement, we enable the production of millions of tons of green ammonia in support of the decarbonisation agenda.”
Green ammonia has the highest volumetric energy density out of all the hydrogen-based energy sources – much more than pure hydrogen – which makes it cheaper and easier to store and transport.
With an existing global ammonia infrastructure, green ammonia can replace hydrocarbon-based fuels for a wide range of use cases, with ammonia fueled ships already on order and ammonia power stations under development.
By operating dynamically-producing ammonia during off-peak power demand hours-First Ammonia will be a net contributor to the economics of renewable power production, providing for the further build-out of additional renewable power wherever they it builds a production plant, the company said.