Norwegian green energy developer Aker Horizons and Leipzig-based gas trader VNG have signed a term sheet for supplying green ammonia from Narvik, northern Norway, to Germany.
The signing further formalizes the companies’ cooperation which began in May 2023 when the letter of intent (LoI) was signed.
Under the agreement, VNG plans to buy up to 150,000 tons of green ammonia per year from Aker Horizons’ large-scale green industrial hub under development in Narvik, which is expected to produce around 450,000 tons of green ammonia per year, from 2029.
The purchased volumes will be shipped to Germany and delivered to VNG’s customers directly as ammonia or in the form of hydrogen.
“The agreement we have, especially when taking into account the actual uncertainties in the markets, is a very important step in our supply relationship. VNG considers Narvik Green Ammonia as one of the most promising and mature large scale green ammonia projects in Europe. We are opening up new perspectives and at the same time it is strengthening our energy partnership with Norway,” said Konstantin von Oldenburg , Managing Director of VNG H&V.
Knut Nyborg , Managing Director of Aker Horizons Asset Development, added: “Progressing from stated ambitions to firm contracts is what we need to realize industrial-scale production of green hydrogen and ammonia. With VNG signing on as a potential off-taker, distributing our product to clients in Europe’s most important energy market, the Narvik Green Ammonia project takes a significant step in this direction. Aker Horizons appreciates the trust placed in Narvik Green Ammonia and we look forward to continuing the close cooperation with VNG in the year ahead.”