RWE plans ammonia terminal at same North Sea site as LNG project

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A RWE logo is seen in this illustration taken October 20, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

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FRANKFURT, March 18 (Reuters) - German power producer RWE (RWEG.DE) said on Friday it would build an ammonia terminal at a site in the North Sea port town of Brunsbuettel where it has already said it will build the country's first liquefied natural gas (LNG) terminal.

Germany is working on a rapid shift away from reliance on Russia for much of it gas needs following Moscow's invasion of Ukraine. Berlin has said LNG, coal and even nuclear power could be used to help plug the gap. read more

The ammonia terminal would initially be used to import the product, which is used for chemicals and fertilisers, but could later be expanded to make ammonia from imported raw materials, RWE said.

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Ammonia is now often produced from natural gas but it can be produced from hydrogen, a 'green' fuel when it is made via electrolysis to split water using renewable energy. Hydrogen, like ammonia, is now also often made from natural gas.

"The (ammonia) project is intended to help facilitate the subsequent conversion of the entire site ready to import green molecules," RWE said in a statement about its latest plans at the North Sea port town.

RWE said it expected to import 300,000 tonnes a year of ammonia made by green technology. It said a production unit would be built later to make ammonia on site using green raw materials, raising ammonia supplies to 2 million tonnes a year.

RWE, Dutch network operator Gasunie (GSUNI.UL) and German state lender KfW (KfW.UL) signed a memorandum of understanding on March 5 to build the LNG terminal.

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Reporting by Vera Eckert; Editing by Edmund Blair

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