First world scale blue ammonia facility in MENA

ADNOC’s chemical subsidiary, TA’ZIZ and the world’s largest seaborne exporter of nitrogen fertilizer Fertiglobe said on Tuesday that they have signed an agreement for Fertiglobe to join to develop the first world scale blue ammonia production project at TA’ZIZ in Ruwais, Abu Dhabi; in another step to strengthen the UAE’s hydrogen value proposition.

This partnership, that remains subject to regulatory approvals, will develop the first-of-its-kind large scale blue ammonia project in the MENA region. The location of the project is beneficiary as it will supply the project with attractive hydrogen and nitrogen feedstocks. The facility’s capacity will be up to 1 million tons per annum.

“We believe hydrogen and its carrier fuels, such as ammonia, offer strong potential as low-carbon energy sources. As we continue to grow our manufacturing base in Ruwais, the UAE is well-placed to meet increasing global demand for this new fuel while strengthening our position as a world-scale chemicals and industrial hub and top destination for local and international investment,” said Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO in a press statement.

The companies will jointly conduct pre-FEED and FEED activities. In parallel ADNOC will undertake a sole-risk feasibility study on blue ammonia.  The Final Investment Decision is expected in 2022, and start-up is targeted for 2025. 

“It also capitalizes on the huge potential that we expect ammonia to offer as part of the accelerated global shift to clean energy and as an enabler for the hydrogen economy. Ammonia is a versatile and clean hydrogen carrier, with many exciting fuel applications, in addition to a diverse array of fertilizer and downstream industrial uses. The use of ammonia as a shipping fuel is particularly promising as it is, together with methanol, the only practical alternative for long-distance shipping to decarbonize in a cost-effective way.,” explained Nassef Sawiris, Executive Chairman of OCI N.V. and CEO of Fertiglobe in a press statement.

The project will build on the UAE’s position as a major producer and reserves holder of natural gas and leadership in Carbon Capture Utilization and Storage (CCUS) whish is the technology of preventing CO2 from entering the atmosphere.

Blue ammonia is made from both nitrogen and “blue” hydrogen which are taken from natural gas feedstocks, with the CO2 captured and stored.