PAO NOVATEK and Uniper agreed on a long-term supply of up to 1.2 million tons of low-carbon ammonia per year to the predominantly German market.
Indexation of the product’s price to key European and global benchmarks.
The Term Sheet details the terms of NOVATEK’s supply of low-carbon ammonia to Uniper. The ammonia will be produced at the Company’s planned Obskiy GCC (Gas Chemical Complex), which will include carbon capture and storage (CCS) facilities, and delivered to Uniper’s planned ammonia import terminal in Wilhelmshaven, which will be equipped with a renewable-energy-powered ammonia cracker.
The imported low-carbon ammonia will be used as a hydrogen carrier, converted to gaseous hydrogen, and fed into Germany’s planned hydrogen pipeline infrastructure, as well as directly supplied as a clean feedstock and fuel. The signing of the Term Sheet advances large-scale collaboration based on the Parties’ earlier January 2021 MOU.
“Our strategy pays significant attention to clean energy supplies, and we consider ammonia as the most efficient hydrogen carrier for seaborne transportation,” said Leonid Mikhelson, Chairman of NOVATEK’s Management Board. “We are now at the pre-FEED stage for a low-carbon ammonia and hydrogen plant with CCS facilities, and signing of term sheets for long-term supply demonstrates growing demand for low-carbon products, which is an essential precursor for the Final Investment Decision on this project. The plant will be located next to our LNG cluster in Yamal in order to minimize the infrastructure costs and provide the most competitive clean energy supplies to the global market”.
