The Netherlands/Spain – Cepsa and ACE Terminal have signed a Memorandum of Understanding (MoU) under which the Spanish energy provider will deliver green ammonia to the planned import terminal in Rotterdam.
End-use applications for ammonia will be in industry following conversion to hydrogen, or for direct use in shipping and other industries in Northwest Europe.
Cepsa is constructing 2GW of green hydrogen at its two Energy Parks in southern Spain’s Andalusia region. The two hydrogen plants will be part of the Andalusian Green Hydrogen Valley, Europe’s largest green hydrogen center, for which Cepsa has recently signed a series of partnership agreements across the hydrogen value chain.
Open access terminal
On the import side, Gasunie, HES International, and Vopak have collaborated to build the ACE Terminal, which will serve as an entrance point into the Netherlands for ammonia as a carrier for green hydrogen and a sustainable feedstock. The open access terminal will be located in the port of Rotterdam, which is a vital energy hub for Northwest Europe. ACE Terminal is a project with a rapid time to market due to the intended reuse of assets and infrastructure. The deal with Cepsa is the first in a series of agreements between other clients and the ACE open access hub terminal for green hydrogen and ammonia imports.
The Memorandum of Understanding between Cepsa and ACE Terminal outlines a collaboration that will result in a binding commercial agreement to facilitate the oversea transport of green ammonia, redistribute the green ammonia to end markets in the hinterland, and process the green ammonia into green hydrogen ready for use by end customers in Northwest Europe. The position of ACE Terminal in Rotterdam’s port provides direct access to Rotterdam’s industry and the proposed national hydrogen network, as well as an outstanding connectivity to infrastructure in Northwest Europe.
The alliance helps to decarbonize industry and transportation in the North and ensure energy independence, security, and affordability in Europe by importing green energy that Cepsa can produce competitively in southern Spain due to conditions such as ample sun, wind, and land, a solid electricity grid, and access to high traffic ports.
The partnership with ACE Terminal strengthens Cepsa’s agreement with the Port of Rotterdam to export hydrogen produced at its San Roque Energy Park near the Bay of Algeciras via hydrogen carriers such as ammonia, establishing the first green hydrogen corridor between southern and northern Europe and ensuring a green hydrogen supply chain between two of Europe’s major ports, Rotterdam and Algeciras.
Cepsa intends to begin the first green hydrogen exports from Spain in 2027, which corresponds to the ACE Terminal project timeframe.
Rotterdam is Europe’s most important energy port, handling 13% of European energy demand, while Algeciras is Spain’s first port, fourth in Europe, and an important commercial route between Europe and Asia. The future demand for green hydrogen in Northwest Europe exceeds the capacity that can be produced locally from sustainable sources, necessitating large-scale imports of green hydrogen.