Abu Dhabi chemicals hub Ta'ziz awards contract to build low-carbon ammonia plant

Dubai: The Abu Dhabi based chemicals hub Ta’ziz has awarded a construction contract for its 1 million tons per annum (mtpa) low-carbon ammonia production facility.

The ADNOC joint venture Fertiglobe, a partner of Ta’ziz, Mitsui & Co., Ltd., and GS Energy Corporation awarded the contract to Tecnimont. Ta'ziz, which is under development at the Al Ruwais Industrial City, is 'set to reinforce Abu Dhabi’s position as a leader in low-carbon fuels and capitalize on the growing demand for low-carbon ammonia as a carrier fuel for clean hydrogen', said a statement.

Construction will begin in the third quarter of 2024, with operations scheduled to launch in 2027. 

A preliminary assessment estimates that Phase 1 of the plant will produce 50 per cent lower-carbon intensity ammonia compared to conventional ammonia. In the second stage, the plant will further reduce its carbon intensity via capturing and sequestrating carbon dioxide emissions.

Mashal Saoud Al-Kindi, CEO of Ta’ziz, said in a statement: “This ammonia production facility, which is set to produce enough low-carbon ammonia to power hundreds of thousands of homes annually, is core to the mission of Ta’ziz to boost local industry supply chains, enhance ICV (in-country value) and catalyze manufacturing capabilities in the UAE – all with a focus on sustainability.”

The first phase of Ta’ziz prioritizes production of six chemicals - ammonia, methanol, ethylene dichloride, polyvinyl chloride, vinyl chloride monomer and caustic. It sets the 'foundation' for manufacturing hundreds of new end-products in the UAE for the first time.

This phase is projected to create a multi-billion dollar investment in the country’s GDP and generate thousands of jobs in the next 20 years.