Hive Hydrogen South Africa (HHSA) has awarded Técnicas Reunidas the design engineering services, through a FEED (front-end engineering design) contract, for a large green hydrogen and ammonia production plant. The South African company anticipates that, following the completion of the engineering work and provided the final investment decision is made, the FEED contract awarded to Técnicas Reunidas will be converted into an EPC (engineering, procurement, and construction) contract for the actual construction of the plant.

The facility, which will produce about one million metric tons of green ammonia annually for supply to domestic and international markets, is being developed in the Coega Special Economic Zone, adjacent to the Port of Ngqura, in Nelson Mandela Bay (Eastern Cape Province, South Africa).

HHSA has announced this contract award during the Africa Green Hydrogen Summit, which opened today in Cape Town (South Africa). In a press release, the company noted that Técnicas Reunidas was selected to carry out this project “after a long and in-depth period of World Leading EPC proposal evaluations”, which took into account that the Spanish company “brings extensive international experience in the engineering and delivery of large-scale energy, hydrogen, ammonia and complex industrial process facilities.”.

The South African company also emphasized that “a key feature of Hive Hydrogen South Africa’s project execution strategy is the intention for the successful Ammonia Production Plant FEED contractor to roll over from FEED into the full Engineering, Procurement and Construction (EPC) phase for the green ammonia production plant, subject to the successful completion of FEED, achievement of the required technical and commercial outcomes, project approvals, financing and Final Investment Decision”. According to HHSA, the projected investment for the green ammonia production plant would reach $1.8 billion.

The scope of work that Técnicas Reunidas will carry out under the FEED contract includeshydrogen production electrolyzers, air separation units, and the green ammonia production loop; a desalination plant; storage systems with a capacity of over 100,000 metric tons; pipelines to the port of Ngqura; and auxiliary facilities. This contract award is fully aligned with the strong growth in service contracts that Técnicas Reunidas is driving as part of its SALTA Strategic Plan.