UAE state-owned oil company, Abu Dhabi National Oil Company (ADNOC) in collaboration with Fertiglobe sold a cargo of blue ammonia to Japan’s largest oil firm INPEX for use in power generation applications.
According to the reports, the sale builds on recently announced joint efforts between the UAE and Japan to improve industrial cooperation. Further, it follows the recent sale of blue ammonia cargos to Japan’s Itochu and Idemtisu as well as supports the establishment of new UAE-Japan blue ammonia supply networks.
Fertiglobe, a joint venture between ADNOC and OCI, will produce blue ammonia at its Fertil plant in the Ruwais Industrial Complex in Abu Dhabi.
ADNOC said in a statement that,” The shipment, which was sold at an attractive premium to grey ammonia (ammonia produced without CO2 capture and sequestration), underscores the favorable economics for blue ammonia as an emerging source of low-carbon energy.”
Ammonia can be utilized as a low-carbon fuel across a wide range of industrial applications such as transportation, power generation, refining, and industries including steel, wastewater treatment, cement as well as fertilizer production. In Japan’s continuing industrial decarbonization initiatives, hydrogen and its carrier fuels, such as blue ammonia, are projected to play a key role.
The sale marks another step forward in the planned expansion of Abu Dhabi’s blue ammonia production capabilities, which will include a low-cost debottlenecking program at Fertil. “Fertiglobe will join ADNOC and ADQ as a partner in a new world-scale 1 million metric tons per annum blue ammonia project at TA’ZIZ in Ruwais, subject to regulatory approvals,” as per the reports.
The state-owned oil corporation generates 300,000 tons of hydrogen per year for its downstream operations and intends to significantly boost its output.