Page 5 - DMEA Week 41 2021

DMEA COMMENTARY DMEA

leverage the strengths of ADNOC and Reliance two partners and companies EBIC, EFC, Sor-
as global industrial and energy leaders.” It will fert, and Fertil (formerly ADNOC Fertilizers).
have a capacity of 940,000 tonnes per year of At launch, the partners said Fertiglobe would
chlor-alkali, 1.1mn tpy of ethylene dichloride be the largest export-focused nitrogen fertiliser
and 360,000 tpy of PVC. platform globally, and the largest producer in
Meanwhile, ADNOC’s efforts to take a MENA with an output capacity of 5mn tpy of
leading role in the nascent hydrogen industry urea and 1.5mn tpy of merchant ammonia from
are highlighted by the development of a 1mn facilities in Algeria, Egypt and the UAE.
tpy blue ammonia facility at TA’ZIZ, though it Also this week, Fertiglobe announced that it
already produces around 300,000 tpy of hydro- had joined forces with Norwegian renewables
gen from Ruwais. firm Scatec and the Sovereign Fund of Egypt
(TSFE) to develop a 50-100MW electrolyser
Fertiglobe in the North African country that will pro-
Ammonia a key focus of Fertiglobe in which duce green hydrogen as a feedstock for green
ADNOC and OCI will list a 13.8% share on the ammonia.
Abu Dhabi Securities Exchange (ADX) as they It said that Scatec would build, operate and
seek to raise around $800mn via an initial public majority own the unit with Fertiglobe subsidiary
offering (IPO). EBIC signing a long-term offtake agreement for
The companies will reduce their individual hydrogen that will enable it to add 90,000 tpy of
shareholdings by 8% minus one share and 5.8% green ammonia to its product slate. The parties
respectively, selling shares at an indicated price are expected to take a final investment decision
range of AED2.45-2.65 ($.66-0.72), each imply- (FID) next year ahead of planned start-up in
ing a valuation of $5.5-6bn and raising $765- 2024.
827mn. OCI and ADNOC will have post-IPO Ammonia’s role in ADNOC’s strategy
shares of 50% and 36.2%. appears to be significant, with the company
Final offer pricing for the listing is expected to positioning itself to take a leadership position
be announced on October 20 ahead of an Octo- in a global supply chain that will facilitate the
ber 27 listing. transportation of blue and green hydrogen to
Banks were invited to pitch for work on the consumer markets.
deal in April and Citigroup, First Abu Dhabi In January, the company signed up Mubadala
Bank, HSBC Bank Middle East and Morgan Investment Co. and holding company ADQ to
Stanley & Co. International have been appointed establish the Abu Dhabi Hydrogen Alliance
as joint global co-ordinators. Bookrunning (ADHA).
is being carried out jointly by EFG Hermes, The formation of ADHA marks a significant
Goldman Sachs International and International step to fulfil plans first mooted in November by
Securities. Abu Dhabi Crown Prince Sheikh Mohammed
According to Fertiglobe, Inclusive Capital bin Zayed, vice-chairman of the former Supreme
Partners, the Abu Dhabi Pension Fund and Sin- Petroleum Council (SPC), when he instructed
gapore sovereign wealth fund GIC have been ADNOC to “explore potential opportunities in
secured as “cornerstone investors”, with Inclu- hydrogen with the ambition to position the UAE
sive Capital founder Jeffrey Ubben set to join the as a hydrogen leader”.
board after the listing. The company is clearly following through on
After the listing, OCI will own 50% plus one these instructions and is already building sig-
share and ADNOC will hold a 36.2% stake. nificant capacity and relationships with existing
The Fertiglobe JV was formed in 2019 and crude customers that ensure a long-term role in
comprises the ammonia and urea assets of the the supply chain.™

Week 41 14•October•2021 www. NEWSBASE .com P5