FRANKFURT (Reuters) -German energy firms Uniper and E.ON plan to work on deals with Canada’s EverWind to buy a total of 1 million tonnes of green ammonia a year from the middle of the decade, in a bid to further diversify away from Russian energy.
Both firms signed respective initial agreements (MoU) during a trip to Canada by German Chancellor Olaf Scholz and Economy Minister Robert Habeck, accompanied by the CEOs of Volkswagen, Uniper and Siemens Energy.
“This is an important step not only to strengthen our bilateral economic relations, but also for a future-oriented and sustainable energy supply,” Scholz said in a statement.
The MoU come ahead of the planned signing of a joint declaration between Canada and Germany to establish a bilateral hydrogen alliance later on Tuesday.
The ammonia will come from EverWind’s planned Point Tupper facility, which is expected to start commercial operation in early 2025. Green ammonia, produced via renewable energy, can be either used in its gas form or be turned into green hydrogen to power the local economy.
Uniper said once agreed, the deliveries “will facilitate decarbonization across Germany and other European countries while reducing Germany’s dependence on fossil fuel-based products from Russia”.
(Reporting by Christoph SteitzEditing by Madeline Chambers)