Adnoc and Fertiglobe sell cargo of blue ammonia to Japan’s INPEX

The Abu Dhabi National Oil Company (Adnoc) announced on Wednesday that, in partnership with Fertiglobe, it has sold a cargo of blue ammonia to INPEX in Japan, for use in power generation applications. The sale builds upon recently announced joint efforts to enhance industrial cooperation between the UAE and Japan and support the development of new UAE-Japan blue ammonia supply chains and follows the recent sale of blue ammonia cargos to Japan’s Itochu and Idemtisu.

Adnoc and INPEX have a longstanding and trusted partnership. INPEX participates in a number of Adnoc’s upstream concessions, has partnered with Adnoc and Intercontinental Exchange on the launch of ICE Futures Abu Dhabi, and most recently announced participation in a joint study agreement with Adnoc and other Japanese partners to explore the commercial potential of blue ammonia production in the UAE.

Fertiglobe, a 58:42 partnership between OCI and Adnoc, will produce blue ammonia at its Fertil plant in the Ruwais Industrial Complex in Abu Dhabi for delivery to Adnoc’s customer, INPEX, in Japan. The shipment, which was sold at an attractive premium to grey ammonia (ammonia produced without CO2 capture and sequestration), underscores the favorable economics for blue ammonia as an emerging source of low-carbon energy. The sale represents a further production milestone of a planned scale-up of blue ammonia production capabilities in Abu Dhabi, which is expected to include a low-cost debottlenecking programme at Fertil. In addition, it was announced in June that Fertiglobe will join Adnoc and ADQ as a partner in a new world-scale 1 million metric tonnes per annum blue ammonia project at TA’ZIZ in Ruwais, subject to regulatory approvals.

Ammonia can be used as a low-carbon fuel across a wide range of industrial applications, including transportation, power generation, refining and industries including steel, wastewater treatment, cement and fertilizer production. For Japan, in particular, hydrogen and its carrier fuels, such as blue ammonia, are expected to play an important role in the country’s ongoing industrial decarbonization efforts.

Adnoc announced in partnership with Fertiglobe sold recently its first cargo of blue ammonia to Itochu in Japan, for use in fertiliser production.

The shipments, which were sold at an attractive premium to grey ammonia, underscore the favourable economics for blue ammonia as an emerging source of low-carbon energy. They represent the first production milestone of a planned scale-up of blue ammonia production capabilities in Abu Dhabi, which is expected to include a low-cost debottlenecking programme at Fertil.

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO, said, “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. 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.”

Masaya Tanaka, Executive Officer of ITOCHU Corporation, President of the Energy & Chemicals Company and COO of the Power & Environmental Solution Division, said, “We are pleased that ITOCHU, a leading general trading company in Japan, is contributing to a low-carbon society together with ADNOC. Starting with this trial of blue ammonia for fertiliser applications, we aim to create a wide range of ammonia value chains for existing industrial applications as well as future energy use.

“By collaborating with ADNOC and Fertiglobe, we expect to initiate and enhance our industrial portfolio in the fertiliser sector while achieving our commitments towards decarbonisation activities in other industries”.

Nassef Sawiris, Executive Chairman of OCI N.V. and CEO of Fertiglobe, commented, “As a result of decarbonising the feedstock supply, we can materially reduce the carbon intensity of our downstream customers along the value chain and across a wide range of industries. We are pleased to leverage the Fertiglobe and ADNOC platforms to help decarbonise our production and customers’ footprints while creating value to shareholders, a win-win across the board. This project shows that Fertiglobe is on track to become a global leader in low-carbon solutions, leveraging its globally leading position in ammonia.”