DAI Infrastructure GmbH (DAI) on Wednesday (17 May) said it entered a 10-year green ammonia purchase agreement with Freepan Holdings Corp, a full gas value chain energy transition asset owner, developer and operator and trading of LNG and ammonia.
The firms signed a Memorandum of Understanding (MoU) which detailed Freepan will offtake 800,000 TPA of green ammonia.
First orders are expected to be delivered in the first quarter of 2028. The green ammonia will be produced at the company’s project in East Port Said, Egypt, where DAI is currently developing a two million TPA capacity green ammonia plant named Ra.
Freepan expects to use the green ammonia for trading to European markets and for mobility applications as maritime fuel for vessels that are going to pass the Suez Channel, according to DAI.
The MOU represented DAI’s second green ammonia offtake, now totaling one million tonnes of green ammonia to be delivered, as planned, after Q1 2028. The total green ammonia production is estimated to reach 1.6 million tonnes of green ammonia annually.
DAI’s Ioannis Papassavvas, said: We at DAI, on behalf of the stakeholders of the Ra green ammonia plant, are more than happy to announce today the signing of this green ammonia agreement together with FREEPAN. This is the second agreement we have signed so far for the Ra project. We are confident of entering into another MOU later this year, which will cover the entire expected annual production. We do look forward to partnering with FREEPAN on this project as this market continues to develop.”
Freepan’s Panagiotis Natsiopoulos, said: “Our company is supporting the energy transition to lower CO2 emissions in the maritime industry. Project Ra, which is planned to provide 800,000t of green ammonia annually to FREEPAN, was selected against a challenging set of ESG criteria, offering FREEPAN and the corresponding stakeholders, who understand the significant impact of green ammonia, the prospect of healthy returns and accelerating transition into a CO2 free environment in the shipping industry.”
Photo credit: Scott Graham
Published: 24 May, 2023
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