German energy company RWE and global logistics company VTG have signed a Memorandum of Understanding (MoU) to jointly develop a logistics concept for supplying customers with ammonia.
It includes exploring delivery routes and determining the necessary filling and transport capacities.
The MoU builds on RWE’s plans for a green import terminal for ammonia in Brunsbüttel . According to the company, from 2026, around 300,000 tonnes of green ammonia per year are to be landed there.
RWE said it plans to use rail transport for the onward journey of the fuel. The ammonia will be delivered by tank wagons to customers in Germany and neighbouring countries.
According to companies, rail transport is advantageous for industrial customers as no connection to a pipeline or inland port is required. The delivery of ammonia by tank wagon has been an established method for years.
Ulf Kerstin, CCO of RWE Supply and Trading, said: “Green ammonia is key in the energy transition because it can be used to decarbonise many industrial processes. In the future, Germany will import large quantities of ammonia, for example via the terminal planned by RWE in Brunsbüttel.”
“From there, the molecules will be distributed directly to industrial customers. VTG has many years of experience in transporting ammonia by tank wagon. That’s why RWE and VTG are also jointly looking at distribution by rail.”
Sven Wellbrock, COO Europe and Chief Safety Officer of VTG, stated: “In addition to its great importance as a basic material for industry, ammonia will also play an important role in securing energy supplies in the coming decades.”
“It is part of VTG’s new energies strategy, which aims to provide our customers with the best possible support in the transformation towards sustainable industrial processes.”
“Together with RWE, we want to show that large quantities of ammonia can already be supplied by rail in the short term in a low-emission and competitive manner.”
At the end of 2022, RWE and Hyphen Hydrogen Energy signed a MoU that could see RWE offtake up to 300,000 tonnes of green ammonia per year from Namibia.
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