Page 5 - DMEA Week 46 2021
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DMEA COMMENTARY DMEA
In-Country Value opportunities,” he added. and ammonia”. ADNOC already produces
Borouge 3 was completed around eight years around 300,000 tpy of hydrogen from Ruwais.
ago and raised the JV’s PO production capacity As part of the agreement, Mitsui and GS
to around 4.5mn tonnes per year (tpy). Energy will, “upon equity participation and
TA’ZIZ is a JV development between supply commencement,” have off-take rights for
ADNOC and holding company ADQ which “significant volumes of low-carbon blue ammo-
seeks to drive the development of industrial nia to meet growing demand in the energy and
projects within the planned Ruwais downstream industrial sectors in Japan and Korea respec-
hub and promote economic diversification. tively”, ADNOC said.
ADNOC and India’s Reliance Industries are ADNOC and Fertiglobe have already sold
collaborating to build a chemicals facility at their first cargo of blue ammonia – to Japan’s
TA’ZIZ that will produce chlor-alkali, ethylene Itochu in August – from their Fertil plant at
dichloride and polyvinyl chloride (PVC). It will Ruwais following the signing of memoranda of
have a capacity of 940,000 tpy of chlor-alkali, understanding (MoUs) earlier in the year with
1.1mn tpy of ethylene dichloride and 360,000 various Asian companies, including GS Energy,
tpy of PVC. to explore collaborative opportunities in blue
Meanwhile, ADNOC’s efforts to take a lead- hydrogen and ammonia.
ing role in the nascent hydrogen industry are In January, ADNOC, Mubadala Investment
highlighted by the development of a 1mn tpy Co. and ADQ signed an MoU to establish the
blue ammonia facility at TA’ZIZ, which it is con- Abu Dhabi Hydrogen Alliance (ADHA), fulfill-
structing with the company’s Fertiglobe joint ing plans first noted in November 2020 by Abu
venture with chemicals producer OCI. Dhabi Crown Prince Sheikh Mohammed bin
Fertiglobe has an output capacity of 5mn tpy Zayed, when he instructed ADNOC to “explore
of urea and 1.5mn tpy of merchant ammonia potential opportunities in hydrogen with the
from facilities in Algeria, Egypt and the UAE, ambition to position the UAE as a hydrogen
and following a successful initial public offering leader”. ADNOC’s ambitions have clearly
(IPO) on the Abu Dhabi Securities Exchange expanded since the formation of ADHA, having
(ADX), OCI holds 50% plus one share, with at the time noted its “special emphasis on blue
ADNOC holding 36.2%. hydrogen as a major natural gas producer and
[goal of expanding] its total hydrogen capacity
Ammonia ambitions to more than 500,000 tpy”.
This week’s other key downstream announce- Following the completion of the TA’ZIZ
ment relates to the TA’ZIZ ammonia facility, with facility, ADNOC’s gross ammonia production
Japan’s Mitsui and GS Energy of South Korea capacity will increase to nearly 3mn tpy, though
agreeing to collaborate in its development. given the pace at which the company is proceed-
In a statement to mark the deal’s signing, Al ing and ambitious plans to become a key cog in
Jaber said that the partnerships with Mitsui and the global hydrogen/ammonia supply chain, few
GS Energy “reflect ADNOC’s commitment to would bet against this figure rising significantly
increase the production of low-carbon hydrogen further.
Week 46 18•November•2021 www. NEWSBASE .com P5
