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    ADNOC sells UAE's first blue ammonia to Japan


The ammonia was sold at an "attractive premium," ADNOC said.

by: Joseph Murphy

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Complimentary, Natural Gas & LNG News, Middle East, Energy Transition, News By Country, United Arab Emirates

ADNOC sells UAE's first blue ammonia to Japan

The Abu Dhabi National Oil Co (ADNOC) and its Fertiglobe joint venture with Dutch fertiliser producer OCI have sold the UAE's first cargo of blue ammonia to Itochu in Japan, ADNOC said on August 3.

The ammonia will be produced at Fertiglobe's Fertil plant in the Ruwais, capable of producing 1.2mn metric tons of ammonia and 2.1mn mt of urea annually. Ammonia from the plant was sold to Itochu at an "attractive premium", ADNOC said, which "underscore[s] the favourable economics for blue ammonia as an emerging source of low-carbon energy."

"Today’s announcement builds upon ADNOC’s commitment to expanding the UAE’s position as a regional leader in the production of hydrogen and its carrier fuels, meeting the needs of critical global export markets such as Japan," ADNOC CEO Sultan Ahmed Al Jaber commented in a statement. "Through the expansion of our capabilities across the blue ammonia value chain, we look forward to furthering our legacy as one of the world’s least carbon intensive hydrocarbon producers and supporting industrial decarbonisation with a competitive low-carbon product portfolio."

ADNOC announced in May it would build a 1mn mt/yr blue ammonia production plant in Ruwais. It plans to re-inject the resulting CO2 emissions from the production process into oilfield reservoirs to boost pressure. Fertiglobe signed up to help develop the project in June, and the following month, ADNOC signed a joint study agreement with Japan's Inpex Corp, Jera and Jogmec on blue ammonia production in the UAE.