Minbos Resources signs HOA for Angolan green ammonia project

Under the HOA, Minbos and Talus will work exclusively with each other to submit a bid into a prominent European green ammonia procurement process – preliminary submission has been made.

The bid will utilise approximately half of the power available to Minbos over the first 10 years under its memorandum of understanding (MoU) with Angola’s National Electricity Transmission Network (RNTEP).

The balance of the power (under the MoU) will be for domestic market development, with Minbos and Talus strongly committed to the Angolan agriculture and mining markets. Export volumes provide scale for the development of the local market at competitive prices.

Upon a successful bid, Minbos and Talus will develop the Capanda Green Ammonia Project (CGAP) through an incorporated Joint Venture (JV).

The development aligns strongly with Minbos’ Cabinda phosphate project, Angola’s renewable energy advantage (US$1.1c/kWh hydropower) and rapidly growing agricultural demand, accelerating the company’s entry into new green ammonia and fertilizer markets.

Minbos and Talus have already completed an export-focused Market Study with key findings including:

• Proceed immediately to deliver a full Definitive Feasibility Study. CGAP can deliver export-grade green ammonia product to Europe utilising isotainers or shipment.
• Green ammonia cost competitiveness is driven by power prices where Angola has a strong advantage.
• The export offtake contracts on offer are government-backed, fixed-term offtake agreements, designed to de-risk projects and attract private financing.
• Modular deployment aligns with compliance requirements, while reducing upfront CAPEX vs conventional plants, accelerating deployment and project development; Talus supplies modules capable of producing 1 - 10 tpd; Capanda will be configured with multiple TalusTen modules.
• First sales are contemplated in 1Q28.

Target markets beyond Europe include:

• Domestic: Angola for fertilizer production (NPK with Minbos phosphate), ammonium nitrate for the mining and agriculture sectors where government backed agricultural projects are rapidly emerging in the Malanje Province.
• Regional: South Africa imports ~300 000 tpy of ammonia, Zambia Copperbelt imports ~200 000 tpy of ammonium nitrate for mining. The inland premium for nitrogen products in Africa results in premium pricing of up to (~+US$200/t) .
• Export: competitive positioning for delivery to markets with a green premium such as Europe, South Korea, and Japan.

Exports sales bring two major benefits for the company’s phosphate and ammonia projects in Angola:

• Foreign exchange risk mitigation. Export sales receipts in Dollars or Euros allow the projects to import necessary equipment and raw materials and repay foreign currency financings.
• Project scale. The local market has large potential but is still nascent. Export sales enable the project to create economies of scale in parallel to Minbos’ development of phosphates. When combined, these projects will enable local production of granular NPK fertilizers.

Minbos Managing Director, Lindsay Reed, commented: “This agreement and subsequent bid marks an important milestone in the company’s strategy to deliver a world-class green ammonia project in Angola. Partnering with Talus brings cutting-edge technology, while green ammonia provides a strong local foundation. Together, we are positioned to deliver a project of scale that supports Angola’s economic diversification and Europe’s decarbonisation goals.”

Talus Renewables CEO, Hiro Iwanaga, stated: “The Capanda Green Ammonia Project represents a unique opportunity to deploy Talus’ modular, zero-carbon ammonia technology at scale, in partnership with Minbos. By leveraging Angola’s world-class renewable hydropower and our proven TalusAg systems, we can deliver some of the most competitive green ammonia in the world for both local markets and European exports. This project not only advances energy transition goals but also strengthens food security and mining supply chains across Africa. We are excited to move into the Feasibility stage and demonstrate the strength of our technology in one of the fastest growing agricultural regions globally.”

Read the article online at: https://www.worldfertilizer.com/environment/27102025/minbos-resources-signs-hoa-for-angolan-green-ammonia-project/