Adnoc to explore low carbon ammonia value chain in Germany

Adnoc announced on Monday that it will explore opportunities to support the climate-neutral transformation of industry through the creation of a low-carbon ammonia value chain with state government and industry representatives in Germany’s North Rhine-Westphalia.

The announcement was made following the signing of a memorandum of understanding (MoU) between the Government of North Rhine-Westphalia, Adnoc and Currenta GmbH & Co. OHG (Currenta), a chemical industry services provider that manages and operates one of the largest chemical sites in Europe, Chempark, with locations in Leverkusen, Dormargen and Krefeld-Uerdingen, in North Rhine-Westphalia.

Ammonia, a compound of nitrogen and hydrogen, 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 fertiliser production.

The agreement was signed in Dusseldorf, Germany, and by Mona Neubaur, Deputy Prime Minister of North Rhine-Westphalia and State Minister for Economics, Industry, Climate Protection and Energy, Musabbeh Al Kaabi, Executive Director, Low Carbon Solutions and International Growth Directorate at Adnoc and Frank Hyldmar, CEO of Currenta.

Mona Neubaur said: “We will do our utmost to expand the capacities for the generation of renewable energies and for the production of other climate-neutral energy carriers such as green hydrogen in this country as much as possible.”

“However, it is also clear that we will have to import various green energy sources in large quantities in order to cover our needs and to achieve our climate protection goals. We are now building partnerships and a broad import infrastructure to supply our industry. The basis for our cooperations is diversification with many countries.”

The primary focus of the agreement will be the production and transportation of low-carbon ammonia and its application as a fuel in energy generation, including industrial-scale testing at Currenta’s site in Dormagen, Germany.

Musabbeh Al Kaabi, Executive Director, Low Carbon Solutions and International Growth Directorate, Adnoc said: “Our fast-growing ammonia business is enabled by the UAE’s abundant and competitive energy resources. As a responsible global energy provider, Adnoc is committed to meeting the growing global demand for lower-carbon intensity energy.”

“In doing so, we are very pleased to partner with the Government of North Rhine-Westphalia and Currenta to jointly decarbonise Germany’s vital industrial heartland.”

Frank Hyldmer, CEO of Currenta said: “Ammonia has the potential to play an important role in decarbonization – for example as a hydrogen carrier or as a fuel in heat generation. As a chemical park operator with large steam and heat generation plants, Currenta is observing very closely to see whether it succeeds in realising this potential.”

“An important factor here is the development of global supply chains for ammonia. We therefore welcome and support the commitment of the state of NRW to work with Adnoc to advance such value chains.”

Adnoc has already invested in low-carbon ammonia, where the carbon dioxide (CO2) emitted during production is captured and stored underground. In May 2021, the company announced a 1 million tonnes per year low-carbon ammonia production facility at the TA’ZIZ industrial ecosystem and chemicals hub in Ruwais, Abu Dhabi.

The company has significantly expanded its strategic energy partnerships across the hydrogen value chain and has shipped demonstration cargoes of low-carbon ammonia to customers in Asia and also to Germany as part of the UAE-Germany Energy Security and Industry Accelerator (ESIA) Agreement.

Adnoc is also investing in renewable energy through Abu Dhabi Future Energy Company (Masdar), a clean-energy powerhouse that will place the UAE at the forefront of the energy transition.

Energy produced from hydrogen creates only water as a byproduct with zero emissions of carbon dioxide.

As the industry scales up globally, with strong demand from Germany and other countries in Europe, ammonia cracking is becoming essential for the industry’s growth

The Hydrogen Council estimates that hydrogen could meet 18 per cent of global energy demand by 2050

Green hydrogen is the term used for hydrogen when it is created from water, usually using renewable energy

The UAE-Germany Energy Security and Industry Accelerator (ESIA) Agreement signed in September 2022 aims to accelerate projects of joint interest in energy security, decarbonisation and climate action.

Adnoc is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi.