Page 7 - MEOG Week 31 2021

MEOG PIPELINES & TRANSPORT MEOG

ADNOC and Fertiglobe sell

blue ammonia to Itochu

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

Week 31 04•August•2021 www. NEWSBASE .com P7