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.) Image Credit: 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.

Mitsui has continued to enhance our relationship with ADNOC since we first began our participation in ADNOC LNG in 1973. Energy solutions remain a strategic focus area for Mitsui - we are excited to commence this new business opportunity with ADNOC in light of global climate action

- Kenichi Hori, President and CEO of Mitsui & Co.