ADNOC and ADQ align with Japanese and Korean partners on blue ammonia project in Ruwais

New facility will come in handy as demand rises for low-carbon blue ammonia

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Stock UAE Oil Refinery Adnoc Ruwais
The TA'ZIZ Industrial Chemicals Zone in Ruwais is garnering a lot of investment interest in clean energy ventures. (Image used for illustrative purposes.)
Bloomberg

Dubai: ADNOC and ADQ have combined to partner Japan’s Mitsui & Co., Ltd (Mitsui) and South Korea’s GS Energy Corp. (GS Energy) to build a low-carbon blue ammonia facility at TA’ZIZ Industrial Chemicals Zone in Ruwais. The partnerships - which also include Fertiglobe - will try to "accelerate" Abu Dhabi’s position as a leader in low-carbon fuels.

The venture will also capitalise on demand for blue ammonia as a carrier fuel for clean hydrogen. The agreements show the "exceptional international investor interest in TA’ZIZ" and follow ADNOC and Fertiglobe’s recent sales of low-carbon blue ammonia demonstration cargos to customers in Japan and Korea.

What's blue ammonia about

Low-carbon blue ammonia is made from nitrogen and clean hydrogen derived from natural gas feedstock, with the carbon dioxide by-product from hydrogen production captured and stored. Blue ammonia can be used as a low-carbon fuel across industrial applications, including transportation, power generation and industries including steel, cement, and fertilizer production.

In a statement, Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, said: “The strategic partnerships with Mitsui and GS Energy - two of East Asia’s global energy champions - reflect ADNOC’s commitment to increase the production of low-carbon hydrogen and ammonia. As the world embraces the energy transition, we will work closely with our new partners to jointly develop new hydrogen markets and applications for low-carbon ammonia to meet the needs of global export markets."

The partnerships follow the recent project framework agreement between ADNOC and Fertiglobe to advance the production of low-carbon blue ammonia at TA'ZIZ. In addition to being partners, Mitsui and GS Energy will - upon equity participation and supply commencement - off-take significant volumes of low-carbon blue ammonia to meet growing demand in the energy and industrial sectors in Japan and Korea.