Page 9 - AsianOil Week 31 2021

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ADNOC, Fertiglobe sell

blue ammonia to Itochu

PROJECTS & ABU Dhabi National Oil Co. (ADNOC) and In June, ADNOC announced that Fer-
COMPANIES its Fertiglobe joint venture (JV) this week have tiglobe would become a partner in a 1mn
announced that they have sold their first cargo tpy blue ammonia project at TA’ZIZ within
of blue ammonia to Japan’s Itochu for use in the the Ruwais Derivatives Park. TA’ZIZ is a JV
production of fertiliser. development between ADNOC and hold-
The sale comes as ADNOC seeks to expand ing company ADQ, which seeks to drive the
its capabilities throughout the energy value chain development of industrial projects within the
and diversify its revenue streams in line with the planned Ruwais downstream hub and drive
Emirate’s recent efforts to establish itself at the economic diversification.
centre of the nascent hydrogen market as a major It was launched in November last year, and
supplier of green and blue hydrogen to Japan and marine and land surveys have now been com-
other Asian countries. pleted. ADNOC and ADQ have awarded con-
According to a statement from ADNOC, Fer- tracts for the first stages of development of the
tiglobe will produce blue ammonia at the Fertil site and work is underway on geotechnical and
plant in the Ruwais Industrial Complex for deliv- topographical and marine bathymetric surveys.
ery to ADNOC’s customers in Japan. The plant At launch, the partners said Fertiglobe would
has a production capacity of 1.2mn tonnes per be the largest export-focused nitrogen fertiliser
year of ammonia and 2.1mn tpy of urea. platform globally, and the largest producer in
It noted that the shipments were “sold at an MENA with an output capacity of 5mn tpy of
attractive premium to grey ammonia [and] under- urea and 1.5mn tpy of merchant ammonia from
score the favourable economics for blue ammonia facilities in Algeria, Egypt and the UAE.
as an emerging source of low-carbon energy”. Meanwhile, the sale to Japan follows an early
The Fertiglobe JV was formed in 2019 and July agreement between ADNOC and Japan’s
comprises the ammonia and urea assets of the INPEX, JERA and Japan Oil, Gas and Metals
two partners and companies EBIC, EFC, Sor- National Corp. (JOGMEC) to explore the com-
fert, and Fertil (formerly ADNOC Fertilizers). mercial potential of blue ammonia production
ADNOC holds a stake of 58% in Fertiglobe, with in the UAE.
OCI owning the remainder. UAE Minister of Industry and Advanced
ADNOC said that the first production Technology and ADNOC Group CEO Sultan
marked a milestone in the Abu Dhabi’s plans to Al Jaber said the announcement “builds upon
ramp up its capacity for blue ammonia output, ADNOC’s commitment to expanding the UAE’s
“which is expected to include a low-cost debot- position as a regional leader in the production of
tlenecking programme at Fertil”. hydrogen and its carrier fuels, meeting the needs
The company added that “while the ammonia of critical global export markets such as Japan.”
Fertil produces is typically considered as ‘grey’ He added: “Through the expansion of our
ammonia, the plant will be fitted with CO2 liq- capabilities across the blue ammonia value
uefaction units, and CO2 will be transferred to chain, we look forward to furthering our leg-
– and reinjected into – underground reservoirs acy as one of the world’s least carbon-inten-
by the ADNOC Al Reyadah carbon capture and sive hydrocarbon producers and supporting
storage [CCS] plant to facilitate the production industrial decarbonisation with a competitive
of blue ammonia.” low-carbon product portfolio.”™

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