Dow becomes shareholder at Stade LNG terminal
Neighborhood becomes strategic partnership: Dow, one of the world's leading material sciences companies, is taking a minority stake in the Hanseatic Energy Hub GmbH. The existing consortium comprising Fluxys, Partners Group and Buss Group is planning to build an import terminal for liquefied natural gas (LNG) at the Stade Industrial Park.
This zero-emission terminal is set to be completed by 2026 in the direct vicinity of the Dow plants. The partners had already agreed on close cooperation last year, which included the use of industrial residual heat at the Dow site for the emission-free regasification of the liquefied gas back to its gaseous state. With a regasification capacity of 13.3 bcm of natural gas per year, the Hanseatic Energy Hub will be able to make a significant contribution to diversifying Germany's energy needs.
The Dow site in Stade is one of the most important and largest industrial sites in northern Germany. There, around three million tons of basic and specialty chemicals are produced every year. The existing seaport is already an important facility for the chemical industry.
In addition to the strategically excellent location and the existing infrastructure, the Hanseatic Energy Hub will also benefit from the know-how of the new shareholder: Dow has more than 50 years of experience in handling liquefied gases in Stade and is a leader in Germany in the production and use of hydrogen. The company already produces around 50,000 metric tons per year of the energy carrier in its electrolysis plants. As part of the partnership, Dow is also contributing the land for constructing the terminal as well as infrastructure services.
"The planned import terminal for liquefied gases is an important bridging technology and building block for the German energy transition," emphasizes Katja Wodjereck, President and General Manager for Dow Germany, Austria & Switzerland. "The liquefied natural gas terminal is being designed from the outset so that it can expand capacity for LNG and potentially accept other liquefied gases in the future. This supports Germany’s federal target of achieving net-zero emissions by 2045, while enhancing the competitiveness of Stade as an industrial location."
For the Hanseatic Energy Hub, this is another important building block in delivering the project. The existing shareholders already have wide-ranging experience in operating LNG terminals and ports, as well as in financing large infrastructure projects.
Pascal De Buck, Fluxys’ Managing Director and CEO said: "Existing and future LNG terminals closely intertwined with industrial activity will make a difference from a sustainable perspective. Dow’s commitment underlines the role of LNG terminals not only as a key infrastructure for security of supply but also as frontrunners of a green energy ecosystem. This terminal certainly ticks the box as it is a perfect fit with our strategy for growth in view of the low carbon future."
This approach is also convincing from an investment point of view, as David Daum, Managing Director, Private Infrastructure, Partners Group adds: "Partners Group is a committed leader in sustainable investing, and one of the first private market firms to sign the UN Principles for Responsible Investing. LNG is recognized as an important link in the energy transition, and with its zero-emission concept and flexibility for the adaption to the hydrogen economy, the LNG terminal in Stade is positioned to aid this transition and support future energy security."
As the next step, the consortium is planning soon to submit the approval documents for the terminal and port. "Together with Dow as another strong, strategic partner, we are building a future-flexible energy infrastructure in Stade. From 2026, we will be able to secure up to 15 percent of Germany's energy needs with LNG as well as low-carbon energy sources such as bio-LNG and synthetic natural gas," explains Johann Killinger, Managing Partner of Hanseatic Energy Hub.
As global supply grows, the hub will also later be ready to import carbon-neutral energy sources, such as green ammonia. Killinger continues: "If we want to diversify German gas imports, business and politics must act decisively now. Our partners and we are ready."