Mitsui and GS Energy sign offtake deals for blue ammonia from UAE project

LONDON (ICIS)–Plans for a world-scale blue ammonia facility at the TA’ZIZ Industrial Chemicals Zone in Abu Dhabi received a boost on Tuesday when Japan’s Mitsui and Korea’s GS Energy struck offtake deals for “significant volumes” of low-carbon fuel from the 1m tonne/year showcase project.

The agreements should accelerate Abu Dhabi’s position as a leader in low-carbon fuels, capitalising on the growing demand for blue ammonia as a carrier fuel for clean hydrogen, said project chiefs Abu Dhabi National Oil Company (ADNOC) and ADQ.

The deals, which are subject to relevant regulatory and company approvals, come just months after ADNOC and its fertilizers joint venture Fertiglobe completed a string of sales of blue ammonia demonstration cargoes to customers in Japan and Korea.

Sultan Ahmed Al Jaber, minister of industry and advanced technology and managing director and group CEO of ADNOC, said he was pleased to welcome the duo to the proposed project at TA’ZIZ Industrial Chemicals Zone, Ruwais.

“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,” he commented.

“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 for the energy and industry markets in Japan and Korea.

“These important agreements strengthen our long-standing ties with the two countries in the fast-growing clean hydrogen economy, reinforcing Abu Dhabi’s pivotal role as a global hub for low-carbon fuels and unlocking significant economic growth opportunities for the UAE.”

A final investment decision on the export-oriented project is expected in 2022, with start-up targeted for 2025.

Blue ammonia is made from nitrogen and clean hydrogen derived from natural gas feedstocks, with the carbon dioxide by-product from hydrogen production captured and stored.

The material can be used as a low-carbon fuel across a wide range of industrial applications, including transportation, power generation and industries including steel, cement, and fertilizer production.