The Latvian company PurpleGreen, developing a green ammonia plant project within the Freeport of Ventspils, and the German energy trading company S.E.T. Selected Energy GmbH, alongside its subsidiary Select New Energies GmbH (SET), signed a Memorandum of Understanding on October 24, 2024, in Hamburg, Germany, for the sale of 550 thousand tonnes of green ammonia per year for twenty years.
The signed memorandum confirms the parties’ commitment to initiating a long-term collaboration for the export of green ammonia produced in Ventspils, which, according to initial project estimates, will amount to approximately 550,000 tons per year. The green ammonia will comply with Renewable Fuels of Non-Biological Origin (RFNBO) standards, and production is planned to start in January 2029. Renewable energy will be used for green ammonia production, making this good news for renewable energy (RES) project developers in Latvia as well. Under the memorandum, SET commits to purchasing and marketing green ammonia and providing logistics, risk management, and other associated services.
This memorandum confirms that green ammonia production has significant potential and represents a future-oriented energy resource product. Demand is already present and expected to grow in the coming years. Operating a plant on this scale will not only promote Latvia's economic development but also strengthen the country's position in the global market as a sustainable energy exporter.
Maris Danisevskis, Head of Power-to-X at PurpleGreen, states: "The signed memorandum confirms demand for all green ammonia produced within the project over a 20-year period, which is a crucial factor in negotiations with investors. A significant step has been taken that will help attract funding to develop the project up to the launch of the green ammonia plant in Ventspils."
PurpleGreen’s Head of Business Development, Julija Dzigulska, who was present at the signing of the memorandum, notes: “This is a significant achievement not only for both companies but potentially for all of Latvia, as the investment planned for establishing the plant could exceed €1.3 billion.”
Managing Director of Select New Energies Felix Danger emphasized, "We are proud to sign this memorandum and begin a strategic partnership with PurpleGreen. Both companies aim to develop clean and decarbonized products for consumers across various sectors, especially in shipping and energy supply. This memorandum aligns with SET's significant and growing role in supporting the decarbonization of multiple industries."
PurpleGreen Energy C has signed a long-term construction rights agreement with the Freeport of Ventspils for the development of a green ammonia plant, and the environmental impact assessment process is now underway.
Igors Udodovs, Deputy Executive Officer of the Freeport of Ventspils, comments: “Around the world, there are high hopes for developing a hydrogen economy as an alternative to fossil energy. Technology-intensive and financially demanding investment projects are underway, and this area is also important for the competitiveness of Latvia’s economy. Ventspils has all the prerequisites to develop into a hub for the production and export of future energy sources, which would have a significant positive impact on the region as a whole. We offer suitable areas for such projects and adaptable port infrastructure for the export of green ammonia and e-methanol. It would be short-sighted not to evaluate and seize these opportunities, which is why the Freeport of Ventspils is actively working to establish a renewable energy cluster in Ventspils. Green ammonia production is one of the crucial cornerstones in this diverse set of activities. We are pleased to collaborate with PurpleGreen Energy C, which chose the Freeport of Ventspils as the site for their project, and they are moving purposefully toward their goals step by step.”
PURPLEGREEN is a brand that unites a group of locally owned companies specializing in developing and implementing renewable energy projects. The group’s companies are involved in solar and wind park projects and the development of innovative production plants for green hydrogen end products - such as green ammonia, methanol, and Sustainable Aviation Fuel (SAF). PURPLEGREEN’s mission is to promote sustainable and environmentally friendly energy production, contributing to a cleaner, greener Latvia while supporting the country’s economic growth.
Founded in Hamburg in 1985, S.E.T. Select Energy GmbH leverages its decades of experience and expertise in global oil and energy trading to promote the transition to sustainable energy. This family-owned company has been a trusted partner for businesses and organizations worldwide for nearly four decades. Its service portfolio covers the entire value chain - from refining and financing to logistics, risk management, and fuel distribution. Within the S.E.T. group, the subsidiary Select New Energies GmbH is responsible for various projects and partnerships in the green energy sector, including power-to-x, biofuels, recycling, and smart electrification.