Signing Ceremony during state visit in Munich, f.l.t.r.: Dr. Markus Steilemann, CEO Covestro AG, Philipp Kroepels Chair Operational Committee, MB Energy, Ahmed El-Hoshy, CEO, Fertiglobe. Image Credit: Covestro / Fertiglobe / MB Energy

• Covestro, Fertiglobe, and MB Energy sign a Memorandum of Understanding to explore an ammonia supply chain into Germany
• Deal centres on a proposed MB Energy import terminal at Blumensand in Hamburg
• Fertiglobe to explore supplying ammonia through the terminal, and a possible equity stake in it
• Covestro to evaluate offtake as feedstock and for hydrogen supply

Covestro, Fertiglobe, and MB Energy have signed a Memorandum of Understanding (MoU) to explore collaboration across the ammonia value chain in Germany and Europe, the companies said in a joint announcement.

The MoU was signed during a visit to Germany by Sheikh Mohamed bin Zayed Al Nahyan, president of the United Arab Emirates.

Under the agreement, Fertiglobe, which describes itself as the world's largest seaborne exporter of urea and ammonia combined, will explore supplying ammonia through an import terminal that MB Energy is proposing to build and operate at Blumensand in Hamburg.

Fertiglobe will also explore taking a potential equity stake in the terminal, the companies said.

Covestro, a manufacturer of polymer materials, will evaluate taking ammonia delivered through the terminal as feedstock for its production, or to meet its hydrogen supply requirements.

The three parties say the collaboration could diversify ammonia supply options and strengthen the resilience of supply chains serving European industry, and that they will also explore serving other industrial customers across Europe.

They plan to jointly assess the commercial, technical, and logistical requirements for supplying ammonia via Hamburg, including terminal capacity, volumes, delivery arrangements, and onward transport by pipeline, barge, and rail.

The review will cover conventional, lower-carbon, and renewable ammonia, including the carbon intensity of potential supply and alignment with regulatory and certification frameworks such as the EU Carbon Border Adjustment Mechanism (CBAM), the companies said.

"Europe's energy transition depends not only on low-carbon molecules, but on reliable infrastructure to reach industrial customers at scale," said Jonathan Perkins, chief executive of MB Energy, in the announcement.

"With MB Energy's long-standing infrastructure and logistics capabilities, we aim to strengthen supply security while enabling the progressive introduction of lower-carbon ammonia in Germany and across Europe."

"This MoU marks an important step in strengthening Fertiglobe's connectivity with industrial customers in Europe and expanding routes to market for our global ammonia platform," said Ahmed El-Hoshy, chief executive of Fertiglobe.

"Ammonia is an essential building block for the chemical industry, and its carbon footprint matters for the transformation of our production," said Markus Steilemann, chief executive of Covestro.

"Securing reliable, competitive and increasingly low-carbon ammonia is therefore a strategic priority for Covestro."