OCI N.V has announced that it has made a final investment decision (FID) for the first phase of its ammonia import terminal expansion project.
The terminal, located at the Port of Rotterdam, acts a hub for hydrogen imported in the form of ammonia from regions with ample natural gas and renewable resources such as the Middle East and North Africa to meet Europe’s expected future hydrogen deficit.
The expansion will increase the facility’s throughput capacity from c.400 ktpa to up to 1.2 million metric tons per year. The first phase of the project is estimated to cost below $20 million and completion is slated for 2023.
For the second phase, OCI has already completed a basic engineering package for the construction of a new world-scale ammonia tank at the terminal. This will help increase throughput to above 3 million tons per annum.
“As a global leader in ammonia production, trading and distribution, this project is a very logical step to leverage our incumbency status in Rotterdam to enhance our ammonia value chain: never has this been as vital as it is now,” said Ahmed El-Hoshy, Chief Executive Officer of OCI N.V.
“We are pleased to announce this milestone, enhancing a key ammonia import and future bunkering hub and aggregation point for low-carbon ammonia at a world-scale port, which will serve as an important avenue for clean ammonia imports from our global facilities and addresses current and future European hydrogen deficit needs.
“This vital piece of the global value chain will provide essential ammonia to keep downstream fertilizer plants running today in this volatile global natural gas environment, and in the future will also offer low carbon ammonia to feed the Dutch and wider European hydrogen needs in power generation, marine fuels, and broader industrial value chains, thereby reducing dependence on fossil fuels.”
Allard Castelein, CEO of the Port of Rotterdam Authority, added: “OCI’s decision to invest in tripling its ammonia import capacity in Rotterdam perfectly fits our plans. Our ambition is to be a carbon neutral port in 2050. This regards not only the industry in the port area, but also shipping.
“Ammonia is not only a hydrogen carrier and a feedstock for the chemical industry, it’s also an important renewable fuel for the shipping sector. To be able to bunker ammonia, steps such as OCI’s need to be implemented to increase the base.
“As sailing on ammonia is something new, we’re working hard together with the business community and public authorities to have the regulations and safe handling procedures for ammonia bunkering operations in place in time.”
OCI and the Port of Rotterdam have had a productive long-term relationship over the last few years. This newly announced initiative aims to further strengthen the bond and OCI’s product offering in the region.
Battery and electronic waste recycling experts TES also recently announced its plans to build a new factory in the Port of Rotterdam.
The facility will be the first plant in the Netherlands for recycling lithium-ion batteries.
As the number of electric vehicles grows exponentially, there will be a huge supply of batteries that need to be recycled.