Green hydrogen is the key to decarbonizing industrial products and processes. VERBUND AG has initiated a decarbonization project - Green Ammonia Linz - together with project partner LAT Nitrogen which will use green hydrogen to produce fertilizers, melamine, and technical nitrogen on an industrial scale at the LAT Nitrogen site in Linz, Austria, thereby supporting the European Green Deal and the Austrian Hydrogen Strategy.
The Green Ammonia Linz project has been selected along with 36 other projects by the European Commission's Executive Agency for Climate, Infrastructure and Environment (CINEA) to receive financial support from the Innovation Fund third call for large-scale projects. Through these projects, the EU is investing EUR 3.45 billion to bring innovative technologies to the market in energy-intensive industries, hydrogen, renewable energy, and the production of components for energy storage and renewable energy. The grant of EUR 48.5 million awarded to the Green Ammonia Linz project shows the relevance of the project with regard to the decarbonization of the hard-to-abate sectors. Currently, the ammonia production is based on grey hydrogen, using natural gas as input factor. By replacing grey with green hydrogen, produced with renewable electricity, significant amounts of CO2 can be saved.
One main element of the joint project is the production of green hydrogen in an industrial scale electrolysis plant (60 MW) developed by VERBUND AG using electricity from renewable sources and deionized water. The produced green hydrogen will be the basic feedstock for the sustainable production of fertilizers, technical nitrogen, and melamine. The oxygen gained in the water electrolysis will be directly used within additional production processes of LAT Nitrogen. The electrolyser will also provide grid services for the transmission network.
Both companies have signed a grant agreement with CINEA on December 15, 2023, to receive the funding and drive the implementation of this project. The electrolysis plant is expected to replace around 10% of the grey hydrogen currently used with green hydrogen and to reduce annual CO2 emissions by up to 90,000 tons.
Hamead Ahrary, Managing Director of VERBUND Green Hydrogen GmbH, is pleased with the selection by the European Commission Executive Agency for Climate, Infrastructure and Environment (CINEA):
"The fact that the Innovation Fund has selected this project out of more than 200 submissions underlines its importance across Europe. This is a particularly important signal in the current transition phase of the emerging hydrogen economy from pilot projects to industrial scale production. The development of local production facilities in Austria must be driven forward quickly in order not to lose touch with the global development of the industry."
With a planned electrolysis capacity of 60 MW and a planned production of up to 7,000 tons of green hydrogen per year, this would be the first project to produce green hydrogen and ammonia on an industrial scale in Austria.
"The project is another milestone of the continuous implementation of the hydrogen strategy and strengthens the understanding of our role as a decarbonization partner of the industry," Hamead Ahrary underlines the pioneering achievement.
"Securing this prestigious funding underlines the vital role of cutting-edge technologies to support the energy transition of industry and the realization of industrial production of green products," says Leo Alders, CEO of LAT Nitrogen. "The Green Ammonia Linz project is our contribution to anchor the industry in Austria and Europe by producing green ammonia with renewable energy and reducing greenhouse gas emissions with green ammonia. This project also demonstrates regional cooperation and innovation. We welcome this funding as it is the first hurdle in this complex project which has now been overcome. However, it will be necessary to continue working with all stakeholders to create the framework for successful implementation."
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About LAT Nitrogen
LAT Nitrogen is a leading European provider of nitrogen-based products in the fertilizer and industrial chemical market. The company was created through the acquisition of Borealis Fertilizer, Technical Nitrogen and Melamine business by Agrofert in 2023. LAT Nitrogen employs nearly 2,000 employees across Europe and has production units located in Austria, France and Germany. The company has an extensive warehouse and commercial network in Western, Central and Eastern Europe. LAT Nitrogen supplies fertilizers, technical nitrogen products and melamine solutions to agriculture and various industry sectors, e.g. the woodworking industry. Our products and services are produced close to our markets and developed as responsible solutions which contribute to sustainable farming and improve living conditions. Being part of the energy intensive industry, we want to be a driver in the ecological transformation of our industry through new technologies and continuous improvement. Safety is a condition for everything we do. http://www.lat-nitrogen.com
Contact: Ines Schmied-Binderlehner, ikp Wien
Tel: +43 1 524 77 90-24
Mail: ines.schmied-binderlehner@ikp.at
About VERBUND
VERBUND is Austria's leading energy company and one of the largest producers of electricity from hydropower in Europe. The company generates around 95 percent of its electricity from renewable sources, primarily hydropower. VERBUND trades in electricity in 12 countries and, in 2022, achieved a consolidated result of around €1,700 million and EBITDA of around €3,160 million with around 3,500 employees. With subsidiaries and partners, VERBUND is active in everything from electricity generation and transport to international trading and sales. VERBUND has been listed on the Vienna Stock Exchange since 1988, 51% of the share capital is owned by the Republic of Austria.
VERBUND is the decisive player for the success of the energy turnaround in Austria. The challenges that lie ahead require a cohesive orientation of the entire company, which VERBUND is driving forward with Mission V. Mission V is a long-term and comprehensive transformation program and stands for the will to confront the climate crisis as a force for change. This program is based on the VERBUND Strategy 2030 with its three thrusts: Strengthening the integrated home market, expanding renewable energies in Europe and establishing itself as a European hydrogen player. With Mission V, VERBUND is accelerating the achievement of its strategic goals 2030 and ensuring their implementation. www.verbund.com
Contact: Ingun Metelko, VERBUND Company Spokesperson
Mail: ingun.metelko@verbund.com