By converting existing ammonia tanks, Vesta Terminals is on track to become the first in the Netherlands to operate an import and distribution terminal for green ammonia. KH Engineering is supporting Vesta in this endeavour.
Geert Arnoldussen knows how to get large-scale storage projects off the ground. Following a career at both domestic and international terminals, he now serves as chief operating officer at Vesta Terminals, with sites in Antwerp (1 million m³) and Vlissingen (three terminals with a combined capacity of 400,000 m³). ‘Providing excellent service to our customers is very important to us’, says Geert. ‘And it shows – we’re fortunate to be in high demand; customers are keen to do business with us.’ In turn, Vesta enjoys working with KH Engineering. ‘Our relationship with KH Engineering began a few years ago during the so-called Maia project for our terminal in Antwerp’, Geert explains. ‘We were working on large-scale storage for kerosene, which is connected to various European airports via the CEPS system. That project went very well. So, when we started a new project in Vlissingen, it was only logical to bring KH Engineering on board again.’
Greenpoint Valley
That new project is called Greenpoint Valley. In Vlissingen, Vesta aims to become the hub for the import and distribution of green ammonia – an ideal hydrogen carrier, essential to the energy transition. ‘The Netherlands and Belgium will never be able to produce enough green hydrogen on their own’, says Geert. ‘Import is a necessity. And we have the perfect starting point: our terminal in Vlissingen houses two existing ammonia tanks – the largest in the Netherlands. A major asset.’ These tanks are currently used for other substances but were originally built for ammonia. Nevertheless, much of the equipment needs to be upgraded to comply with the revised PGS 12 guideline, which sets stricter requirements for safety, reliability, design, loading and unloading facilities, and operational procedures. This guideline has been updated by the Dutch government in anticipation of a growing role for green ammonia as an energy carrier. ‘We are on the brink of a major transformation’, says Geert. ‘The tanks will remain, but almost everything else will change.
Two routes, one mission
From the storage site in Vlissingen, two distribution routes have been developed. The first: a distribution terminal from which green ammonia is transported by rail and inland shipping to the German hinterland. The green ammonia can also be used locally as a marine fuel or for power generation. One of the partners in this project is energy company Uniper. The second route focuses on conversion. Vesta is working with an established player who is building a cracker next to the terminal, where hydrogen is extracted from the green ammonia. This green hydrogen is then used at an existing refinery, saving them 700,000 tonnes of CO₂ emissions per year. ‘To produce green hydrogen using solar and wind energy, you need a large-scale facility – one that is currently under construction. That hydrogen is ‘packaged’ in ammonia, shipped to Vlissingen, and then converted back into hydrogen here’, Geert explains.
KH Engineering as a partner
For both projects, Vesta conducted an initial study with another firm before choosing to continue with KH Engineering. ‘They first prepared a cost estimate for the business case with the established player’, says Geert. ‘After that, they have moved into the FEL 3 phase and will be developing the EPC packages. That will enable us to make the final investment decision.’ Vesta has also asked KH Engineering to support the tender phase and to act as the owner’s representative during construction, meaning KH Engineering will oversee the build on site on behalf of Vesta. Geert explains, ‘We have a small team and, during that phase, we need to focus on recruiting an additional crew, including operators, shift leaders and a local management team.’
ready for launch
Once agreements with offtakers are finalised and permits are in place, construction can begin. The work is expected to take around a year and a half. ‘But then we’ll have something truly substantial’, says Geert. ‘Other players in the market are also developing plans for green ammonia, but they’re nowhere near as far along. I call those PowerPoint projects. We’ll be the first with an operational terminal for green ammonia.’
confidence in collaboration
Geert describes the collaboration with KH Engineering as professional and pleasant. ‘They’re not too small and not too big. Communication is straightforward, they understand us, and they’re flexible. The people assigned to the project are well selected and align perfectly with our needs. On top of that, they bring extensive experience in the terminal industry – including refrigerated tanks, which are essential for storing ammonia. That boosts confidence.’
For more information about Vesta Terminals: vestaterminals.com