19 December 2023

European Commission awards innovation fund to VERBUND's joint green hydrogen project with LAT Nitrogen "Green Ammonia Linz"

Green hydrogen is the key to decarbonizing industrial products and processes. VERBUND AG has initiated a decarbonization project - Green Ammonia Linz - together with project partner LAT Nitrogen which will use green hydrogen to produce fertilizers, melamine, and technical nitrogen on an industrial scale at the LAT Nitrogen site in Linz, Austria, thereby supporting the European Green Deal and the Austrian Hydrogen Strategy.

The Green Ammonia Linz project has been selected along with 36 other projects by the European Commission's Executive Agency for Climate, Infrastructure and Environment (CINEA) to receive financial support from the Innovation Fund third call for large-scale projects. Through these projects, the EU is investing EUR 3.45 billion to bring innovative technologies to the market in energy-intensive industries, hydrogen, renewable energy, and the production of components for energy storage and renewable energy. The grant of EUR 48.5 million awarded to the Green Ammonia Linz project shows the relevance of the project with regard to the decarbonization of the hard-to-abate sectors. Currently, the ammonia production is based on grey hydrogen, using natural gas as input factor. By replacing grey with green hydrogen, produced with renewable electricity, significant amounts of CO2 can be saved.

One main element of the joint project is the production of green hydrogen in an industrial scale electrolysis plant (60 MW) developed by VERBUND AG using electricity from renewable sources and deionized water. The produced green hydrogen will be the basic feedstock for the sustainable production of fertilizers, technical nitrogen, and melamine. The oxygen gained in the water electrolysis will be directly used within additional production processes of LAT Nitrogen. The electrolyser will also provide grid services for the transmission network. 

Both companies have signed a grant agreement with CINEA on December 15, 2023, to receive the funding and drive the implementation of this project. The electrolysis plant is expected to replace around 10% of the grey hydrogen currently used with green hydrogen and to reduce annual CO2 emissions by up to 90,000 tons.

Hamead Ahrary, Managing Director of VERBUND Green Hydrogen GmbH, is pleased with the selection by the European Commission Executive Agency for Climate, Infrastructure and Environment (CINEA):

"The fact that the Innovation Fund has selected this project out of more than 200 submissions underlines its importance across Europe. This is a particularly important signal in the current transition phase of the emerging hydrogen economy from pilot projects to industrial scale production. The development of local production facilities in Austria must be driven forward quickly in order not to lose touch with the global development of the industry."

With a planned electrolysis capacity of 60 MW and a planned production of up to 7,000 tons of green hydrogen per year, this would be the first project to produce green hydrogen and ammonia on an industrial scale in Austria. 

"The project is another milestone of the continuous implementation of the hydrogen strategy and strengthens the understanding of our role as a decarbonization partner of the industry,"  Hamead Ahrary underlines the pioneering achievement.

"Securing this prestigious funding underlines the vital role of cutting-edge technologies to support the energy transition of industry and the realization of industrial production of green products," says Leo Alders, CEO of LAT Nitrogen. "The Green Ammonia Linz project is our contribution to anchor the industry in Austria and Europe by producing green ammonia with renewable energy and reducing greenhouse gas emissions with green ammonia. This project also demonstrates regional cooperation and innovation. We welcome this funding as it is the first hurdle in this complex project which has now been overcome.  However, it will be necessary to continue working with all stakeholders to create the framework for successful implementation."

Green Ammonia Linz | GrAmLi | 

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“Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or [name of the granting authority]. Neither the European Union nor the granting authority can be held responsible for them.”

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