Reaction of H‐FOX (1‐hydrazinyl‐2,2‐dinitroethenamine) with 2,2,2‐trinitroethanol resulted in an unexpected compound, 1,1′‐methylenebis[3‐(2,2,2‐trinitroethyl)urea] (5), which when treated with acetic anhydride and 100 % nitric acid gave an N‐NO2 derivative, 1,1′‐methylenebis[1‐nitro‐3‐(2,2,2‐trinitroethyl)urea] (6) in good yield. Compound 6 exhibits a good oxygen balance (+20.4 %), density (d = 1.87 g/cm3) and excellent detonation performance (vD = 8910 m/s; P = 35.8 GPa) as well as acceptable stability and sensitivity, which suggests it as an attractive replacement for ammonium perchlorate (AP).