The Latvian company SIA PurpleGreen Energy C (PurpleGreen), which is developing a project to construct a green ammonia production plant within the territory of the Freeport of Ventspils, and the German energy resources trading company S.E.T. Select Energy GmbH, along with its subsidiary Select New Energies GmbH (SET), signed a Memorandum of Understanding on 24 October of this year in Hamburg, Germany, for the sale of 550 thousand tonnes of green ammonia per annum over a twenty-year period.
1. Location of the ammonia production plant of PurpleGreen
The signed memorandum affirms the parties’ commitment to initiate long-term cooperation for the export of green ammonia produced in Ventspils, which is estimated to be around 550 thousand tonnes annually according to initial project assessments. The green ammonia will comply with the criteria for renewable fuels of non-biological origin (RFNBO), with production scheduled to begin in January 2029. Electricity obtained from renewable energy sources (RES) will be used for the production of green ammonia, which is good news for RES project developers in Latvia. According to the signed memorandum, SET commits not only to purchasing and selling green ammonia but also to providing logistics, risk management, and other related services.
This memorandum highlights the potential for green ammonia production as a product for the future energy market, with current demand and an anticipated increase in the coming years. The operation of a plant of this magnitude will not only support Latvia’s economic development but also strengthen its position in the global market as a sustainable energy exporter.
Māris Daniševskis, the Lead Power-to-X Manager at the PurpleGreen, explains, “The signed memorandum demonstrates the demand for green ammonia produced throughout the project over the next 20 years, which is a critical factor in negotiations with investors. This marks a significant step toward securing funding to advance the project until the green ammonia plant in Ventspils becomes operational.”
PurpleGreen’s Head of Business Development, Jūlija Dziguļska, 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 well exceed EUR 1.3 billion.”
Felix Danger, Managing Director of Select New Energies, comments on the signed memorandum, “We are proud to sign this Memorandum of Understanding and to initiate a strategic partnership with PurpleGreen. The goal of our companies is to develop clean and decarbonized products for consumers across various sectors, particularly in shipping and energy supply. This memorandum aligns with SET’s significant and growing role in supporting the decarbonization of different sectors.”
SIA PurpleGreen Energy C has signed a long-term building rights agreement with the Freeport of Ventspils for the construction of a green ammonia production plant, and the environmental impact assessment is now underway.
Igors Udodovs, the Deputy CEO of the Freeport of Ventspils, comments, “Currently, there are high expectations worldwide for the development of a hydrogen economy as an alternative to fossil energy. Technology and financially intensive investment projects are underway, and this sector is important for the competitiveness of the Latvian economy. Ventspils has all the advantages to develop into a future energy production and export hub, which in turn would be a great advantage for the region in general. Ventspils offers both suitable areas for such projects and easily adaptable port infrastructure for the export of green ammonia and e-methanol. Of course, it would be short-sighted not to evaluate and seize these opportunities; therefore, the Freeport of Ventspils Authority is purposefully developing a renewable energy cluster in Ventspils, with green ammonia production being one of the key cornerstones of this complex of diverse activities. We are satisfied that PurpleGreen Energy C chose the Freeport of Ventspils as a place for the development of its project, and we are progressing step by step toward achieving results.”
PURPLEGREEN is a brand that unites a group of local capital companies specializing in the development and implementation of renewable energy projects. The group’s companies are developing solar and wind farm projects, including innovative production facility projects for green hydrogen end products – green ammonia, methanol, and sustainable aviation fuel (SAF). The goal of PURPLEGREEN is to promote the production of sustainable and environmentally friendly energy, thereby helping Latvia become cleaner and greener, as well as strengthening the country's economic development.
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. As a family-owned company, it has been a trusted partner for businesses and organizations worldwide for nearly four decades. Its range of services covers the entire value chain, from processing and financing to logistics, risk management, and fuel distribution. The subsidiary Select New Energies GmbH, within the SET group, is in charge of various projects and collaborations in the green energy sector, including power-to-X, biofuels, recycling, and smart electrification.
2. From the left, Māris Daniševskis (PurpleGreen), Jūlija Dziguļska (PurpleGreen), Joffrey Nativelle (SET), Felix Danger (SET)