The 5,000-tonnes-per-year plant in Ramme integrates 50MW of new solar capacity, 12MW of existing wind energy, with electrolysis and ammonia synthesis.

Developed with Danish technology firm Topsoe and wind turbine maker Vestas, the project is designed to adapt to renewable energy fluctuations, reducing costs by operating without hydrogen storage.

In doing so, the group claims the project is the world’s first “dynamic” green ammonia plant.

Skovgaard CEO Niels Erik Madsen said it demonstrates the “energy systems of tomorrow”.

The project received DKK 81m ($12.7m) in funding from the Danish Energy Technology Development and Demonstration Program.

The partners have not disclosed where the ammonia produced at the facility will be used. However, Topsoe’s CEO for Power-to-X, Kim Hedegaard, said the collaboration was “accelerating” green ammonia’s role in industries such as shipping and agriculture.

Green ammonia, produced using green hydrogen and nitrogen, is widely seen as a future maritime fuel and a lower-carbon alternative for nitrogen-based fertilisers.

However, like green hydrogen, green ammonia faces high production costs. As renewable electricity is the largest cost component, the partners will aim to show that operating on low-cost, intermittent power can reduce prices, despite lower utilisation rates and longer payback periods.