AMSTERDAM, April 11 (Reuters) - Dutch gas network operator GasUnie on Monday said it has signed a heads of terms agreement with Vopak NV and HES International BV to develop an ammonia terminal at Rotterdam Port, part of plans to develop the Netherlands "green" hydrogen infrastructure.
The companies declined to comment on the potential cost of the ACE Terminal project, which they said would be operational in 2026 pending approvals and final investment decisions. Green hydrogen is hydrogen made using renewable energy.
The move follows the signing of a memorandum of understanding last week by the Port of Rotterdam and Chariot Ltd to set up supply chains to import green hydrogen and ammonia to Rotterdam from Mauritania.
A spokesperson for GasUnie, which has been tasked by the Dutch government with re-purposing parts of the country's natural gas network into the "backbone" of a new hydrogen network, said the terminal could be compared with the nearby GATE liquefied natural gas (LNG) terminal in Rotterdam.
GasUnie and Vopak own GATE as a joint venture, which has capacity to 12 billion cubic meters, (bcm) with plans announced last month to expand to 17 bcm as quickly as possible.
GATE originally cost around $1.1 billion to build in 2011.
"Our investment program for the next seven years is 7 billion euros, and of that, 4 billion euros is targeted toward hydrogen development," the GasUnie spokesperson said.
Sketches published by Vopak showed plans for storage facilities, facilities to "crack" or convert ammonia into hydrogen, and a connection to GasUnie's network of hydrogen-bearing pipes.
"It looks like HES has the terminal assets, and GasUnie the pipelines and land/sea connections, whereas Vopak will bring in its knowledge of ammonia ... (as it is already) operating six ammonia terminals worldwide," ING Analyst Quirijn Mulder wrote in a note on the plan. (Reporting by Toby Sterling; Editing by Will Dunham)
Chariot Ltd (CHAR)
