Iberdrola plans to build a $808 million (€750 million) plant to produce green ammonia that will be purchased and exported by ammonia trader and shipper Trammo.
The Spanish power company has positioned itself as one Europe's leaders in renewable power and green hydrogen, in line with Spain's ambition to become a green energy powerhouse, Reuters reported.
Green ammonia is produced using renewable energy and can be used in its gas form or turned into green hydrogen. It can also be used in fertilizer production, to transport green hydrogen and has potential uses as a marine fuel.
Millán García-Tola, the company's green hydrogen chief, said this deal could be the first of several.
"Reducing industrial emissions with the supply of green ammonia presents opportunities in the coming years and Iberdrola wants to be at the centre of this market," he said.
"We are already in talks with Trammo to look at similar projects in other markets."
Green hydrogen projects in general are often not competitive without subsidies.
Iberdrola said that the new plant "will be viable thanks to European funding" that it will apply for. The construction of a 500 megawatt (MW) renewable energy facility will fuel the plant.
Iberdrola steps up green ammonia plans
