DAI and Freepan pen 10-year green ammonia purchase deal
DAI and Freepan pen 10-year green ammonia purchase deal - Offshore Energy
DAI and Freepan pen 10-year green ammonia purchase deal
DAI Infrastructure GmbH and Freepan Holdings Corp have entered a ten-year green ammonia purchase agreement.
The companies signed a Memorandum of Understanding (MoU) according to which Freepan will offtake 800 000 TPA of green ammonia.
According to DAI, the green ammonia will be produced in East Port Said, Egypt, where the company is currently developing a two million TPA capacity green ammonia plant named Ra. The first orders are expected to be delivered in the first quarter of 2028.
DAI said Freepan expects to use the green ammonia for trading to European markets and for mobility applications as maritime fuel for vessels that are going to pass the Suez Channel.
The MoU represents DAI’s second green ammonia offtake, totalling now one million tonnes of green ammonia to be delivered, as planned, after Q1 2028, with the total green ammonia production estimated to reach 1.6 million tonnes of green ammonia annually, DAI noted.
DAI’s Ioannis Papassavvas stated: “We at DAI, on behalf of the stakeholders of the Ra green ammonia plant, are more than happy to announce the signing of this green ammonia agreement together with Freepan. This is the second agreement we have signed so far for the Ra project. We are confident of entering into another MoU later this year, which will cover the entire expected annual production. We do look forward to partnering with Freepan on this project as this market continues to develop.”
Freepan’s Panagiotis Natsiopoulos commented: “Our company is supporting the energy transition to lower CO2 emissions in the maritime industry. Project Ra, which is planned to provide 800 000 tonnes of green ammonia annually to Freepan, was selected against a challenging set of ESG criteria, offering Freepan and the corresponding stakeholders, who understand the significant impact of green ammonia, the prospect of healthy returns and accelerating transition into a CO2 free environment in the shipping industry.”
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