Allianz to buy into Norwegian green ammonia firm Fuella

German insurer Allianz SE (ETR:ALV), through its investment arm, will take a minority stake in Norwegian green ammonia company Fuella AS in a deal that will see it invest EUR 20 million (USD 21.9m) to support the development of the target's project pipeline.

Fuella seeks to develop commercial-scale green hydrogen and green ammonia projects with easy access to affordable renewable electricity, strong grid capacities and efficient offtake and transport routes.

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The agreed transaction marks Allianz Capital Partners’ second direct investment in green hydrogen and follows an agreement to acquire a minority stake in the Finnish green hydrogen and power-to-gas project developer Ren-Gas in December 2022.

The terms of the deal also provide an option for Allianz to invest in Fuella’s pipeline of projects, according to a statement published last week.

Set up in 2020, Fuella is already working on two projects. In 2021, the company signed a partnership agreement with Skipavika Industrial Park to jointly develop a green ammonia production facility in the Mongstad basin by 2025. The site will be designed to have a production capacity of 300 tonnes per day.

Last year, the Norwegian firm announced its second project at home -- a green ammonia facility with a daily production capacity of 600 tonnes. The site, which will be located close to a substation and a hydropower plant, is scheduled to be commissioned by the end of 2026.

(EUR 1 = USD 1.097)