Capanda Project to Harness 100MW Angola Hydropower for Green Ammonia by 2028
Minbos Resources has entered a binding agreement with Talus Renewables to develop the Capanda Green Ammonia Project in Angola, aiming to supply both European and African markets with competitively priced green ammonia.
- Binding Heads of Agreement signed between Minbos and Talus Renewables
- Joint bid submitted for a major European green ammonia procurement process
- Project leverages Angola’s low-cost hydropower and Minbos’ phosphate resources
- Plan to form a joint venture upon successful bid with first sales targeted for Q1 2028
- Focus on export markets and domestic African agriculture and mining sectors
A Strategic Partnership for Green Ammonia
Minbos Resources Limited (ASX, MNB) has taken a significant step forward in its green energy ambitions by signing a binding Heads of Agreement with Talus Renewables Inc., a leader in modular ammonia production technology. This partnership is set to jointly develop the Capanda Green Ammonia Project (CGAP) in Angola, a venture that aligns with global decarbonisation efforts and regional economic diversification.
The agreement commits both parties to work exclusively together to submit a bid into a prominent European green ammonia procurement process. This initiative is part of a broader push by European governments to source clean hydrogen-based products, with the bid leveraging approximately half of the renewable power Minbos has access to under its Memorandum of Understanding with Angola’s National Electricity Transmission Network.
Harnessing Angola’s Renewable Advantage
Angola’s abundant and inexpensive hydropower; priced at just USD 1.1 cents per kilowatt-hour; provides a compelling cost advantage for green ammonia production. The project’s design incorporates Talus’ modular TalusTen units, which allow scalable and flexible deployment, reducing upfront capital expenditure compared to traditional ammonia plants. This modular approach also accelerates project timelines, with first sales anticipated as early as the first quarter of 2028.
Beyond exports, the partnership is committed to developing domestic markets in Angola, particularly in agriculture and mining sectors. The Capanda project is strategically linked with Minbos’ Cabinda phosphate project, enabling the production of granular NPK fertilizers locally. Regional markets such as South Africa and Zambia also present significant demand, with premium pricing due to inland transport costs.
Market and Financial Implications
The export component of the project is crucial for mitigating foreign exchange risks, as revenues in US dollars or euros will support equipment imports and foreign currency financing repayments. The joint venture structure, to be established upon a successful bid, will share funding responsibilities and intellectual property rights, underscoring a balanced partnership approach.
Minbos Managing Director Lindsay Reed highlighted the strategic importance of this agreement, emphasizing its role in delivering a world-class green ammonia project that supports Angola’s economic diversification and Europe’s clean energy goals. Talus Renewables CEO Hiro Iwanaga echoed this optimism, noting the project’s potential to advance energy transition objectives while bolstering food security and mining supply chains across Africa.
Looking Ahead
While the bid details remain confidential until the outcome is announced, the partnership has already completed an export-focused market study that supports immediate progression to a Definitive Feasibility Study. The project’s success will depend on securing the European offtake contracts, which are government-backed and designed to de-risk investments.
Overall, the Capanda Green Ammonia Project represents a forward-looking fusion of innovative technology, renewable energy resources, and strategic market positioning. It stands as a promising example of how emerging economies can integrate into the global green energy supply chain while fostering local industrial growth.
Bottom Line?
The Capanda project could redefine Angola’s role in green energy exports and regional fertilizer supply, but hinges on winning the European bid and executing the feasibility study.
Questions in the middle?
- What are the specific terms and scale of the European green ammonia procurement bid?
- How will domestic and regional market demand evolve to support the project’s second half power allocation?
- What financing structures will the joint venture pursue to fund project execution post-bid?
