Abu Dhabi-based chemical company Fertiglobe has signed an agreement to join the world-scale blue ammonia production project at TA’ZIZ in Ruwais.
Fertiglobe will join the development in the TA’ZIZ Industrial Chemicals Zone within Ruwais, which is being developed by ADNOC and holding company ADQ to manufacture downstream products.
The agreement will strengthen the UAE’s hydrogen value proposition, building on the deep experience in carbon capture and storage of ADNOC, and the world-leading ammonia capabilities of Fertiglobe, to establish the first-of-its-kind large scale blue ammonia project in the Middle East and North Africa (MENA) region.
The project will benefit from its location in the purpose-built TA’ZIZ Industrial Chemicals Zone, which is close to the Ruwais Industrial Complex and will provide attractive hydrogen and nitrogen feedstocks. The agreement is subject to regulatory approvals.
“This is a significant milestone in the development of our blue hydrogen and ammonia business and capitalizes on the strong foundation that ADNOC has developed with Fertiglobe. 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 world-scale chemicals and industrial hub and a top destination for local and international investment.”
The firms will collaborate on pre-FEED and FEED activities, while ADNOC will conduct a sole-risk feasibility study on blue ammonia in the meantime. The final investment decision is expected in 2022, and start-up is targeted for 2025.
“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 cost-effectively. This project, therefore, creates exciting growth opportunities for Fertiglobe that will strengthen its market-leading position,” said Mr. Nassef Sawiris, Executive Chairman of OCI N.V. and CEO of Fertiglobe.
The project will build on the UAE’s position as a major producer and reserves holder of natural gas and leadership in Carbon Capture Utilisation and Storage (CCUS). CCUS is the use of advanced technology to prevent CO2 from entering the atmosphere after it is expended as a by-product of industrial processes.