UAE - Mubasher: The Abu Dhabi National Oil Company (ADNOC) has agreed to sell blue ammonia, in partnership with Fertiglobe, to Idemitsu to be used in the Japanese company's refining and petrochemicals operations.
The sale comes in line with joint efforts to foster industrial cooperation between the UAE and Japan and support the development of new UAE-Japan blue ammonia supply chains, according to a press release on Tuesday.
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 to be delivered to ADNOC’s customers in Japan.
The shipment, which was sold at an attractive premium to grey ammonia, reflects 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 June, Fertiglobe was announced that it will partner with ADNOC and ADQ in a new world-scale 1 million metric tonnes per annum blue ammonia project at TA’ZIZ in Ruwais, subject to regulatory approvals.
For Japan, hydrogen and its carrier fuels, such as blue ammonia, are forecast to contribute to the country’s industrial decarbonisation efforts, as ammonia can be used as a low-carbon fuel across various industrial applications.
It is noteworthy to mention that ADNOC will sell the UAE's first cargo of blue ammonia to Itochu in Japan, in partnership with Fertiglobe, to be used in fertiliser production.