UAE's Fertiglobe Expands Blue Ammonia Production in Response to Asian Demand
Key Ideas
- Fertiglobe plans to invest over $1 billion in blue ammonia production in response to Asian demand, awaiting purchase commitments from the region.
- The company aims to secure contracts to proceed with a blue ammonia project in the UAE, upgrading its existing Ta'ziz facility in Ruwais for increased production.
- While green ammonia agreements face challenges, Fertiglobe successfully secured a green ammonia offtake deal in Germany through the H2Global pilot auction.
- Projected production volumes indicate a significant growth potential, with plans to supply up to 397,000 tonnes of ammonia cumulatively by 2033.
Fertiglobe, a company based in Abu Dhabi, UAE, is planning a substantial investment of more than $1 billion in blue ammonia production to cater to the rising demand in Asia. CEO Ahmed El-Hoshy highlighted the importance of securing purchase commitments from Asia to proceed with the project. The company is looking to finalize an investment decision on a blue ammonia project in the UAE once these contracts are in place. The production expansion will involve upgrading the existing Ta'ziz facility in Ruwais, with ammonia production set to commence in 2027. Despite challenges facing green ammonia agreements, Fertiglobe managed to secure a green ammonia offtake agreement in Germany through the H2Global pilot auction. This move aligns with the company's strategy to capitalize on the growing demand for ammonia products. The reported plans indicate a significant growth trajectory, with Fertiglobe intending to supply 19,500 tonnes in 2027 and potentially scaling up to 397,000 tonnes by 2033. This expansion solidifies Fertiglobe's position as a major player in the ammonia and urea export market, further establishing its foothold in the MENA region.