Fertiglobe, Covestro and MB Energy Sign MoU on Ammonia Imports

Fertiglobe, Covestro and MB Energy have signed a memorandum of understanding to explore importing, storing, distributing and offtaking ammonia through MB Energy's proposed import terminal at Blumensand in Hamburg. Fertiglobe will also explore potential equity investment in the terminal, while Covestro will evaluate offtake for feedstock and hydrogen supply needs. The parties will assess terminal capacity, volumes, delivery arrangements and onward transport by pipeline, barge and rail, covering conventional, lower-carbon and renewable ammonia.

Key facts

Market context

Ammonia is one of the most widely produced industrial chemicals, used mainly as a feedstock for nitrogen fertilizers such as urea and ammonium nitrate, and also as an input for nitric acid, explosives, and a range of chemical intermediates. Hydrogen is closely linked to ammonia because ammonia can serve as a hydrogen carrier, which makes it relevant to energy and industrial decarbonization projects. Demand is driven by agriculture, chemical manufacturing, and industrial users that depend on steady feedstock supply. Europe has historically produced much of its ammonia from natural gas, so it is sensitive to gas prices and import competition. New import terminals can add supply routes, storage, and distribution options, which may improve flexibility for buyers. Lower-carbon and renewable ammonia grades are increasingly discussed, but their commercial value depends on certification standards and carbon border rules such as the EU Carbon Border Adjustment Mechanism (CBAM), which affects how imported ammonia is priced and documented.

Source: official release on fertiglobe.com. Summary and context written by Market Krystal.