Adnoc plans to develop blue ammonia plant in Ruwais
▶ Project will have a production capacity of 1,000 kilotonnes a year
Abu Dhabi National Oil Company will develop a massive blue ammonia project at its downstream centre in Ruwais, as it looks to expand the UAE’s hydrogen economy.
The plant, at the Ta’ziz industrial ecosystem being developed with state holding company ADQ, is now in the design phase. It will have the capacity to produce 1,000 kilotonnes of ammonia a year, Adnoc said yesterday.
Blue ammonia is a more easily transportable fuel made from blue hydrogen, which is itself produced as a byproduct of carbon dioxide capture and storage. It is referred to as blue hydrogen because it is derived from natural gas.
“This is a significant milestone in the development of our blue hydrogen and ammonia business, building on the UAE’s strong position as a producer of competitive, low carbon natural gas and our leadership role in carbon capture and underground storage,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Adnoc group chief executive and managing director.
Globally, the hydrogen industry is expected to grow to $183 billion by 2023, from $129bn in 2017, according to Fitch Solutions.
Adnoc, alongside Mubadala and ADQ, is part of an alliance to develop a hydrogen economy in the UAE.
It already produces 300,000 tonnes of hydrogen on an annual basis for its downstream operations and plans to increase its output significantly.
UK contractor Wood is undertaking front-end engineering and design on the ammonia project. The company is also executing six other chemical projects for the Ta’ziz joint venture.
Adnoc and ADQ plan to collaborate on projects worth $5 billion at the Ruwais Derivatives Park. They will invest in chemicals projects worth $3bn and spend $2bn on developing a port and infrastructure facilities.
Adnoc will also undertake a feasibility study on supplying blue hydrogen for the project from its downstream operations in Ruwais.
A final investment decision on the project is expected next year, with a targeted starting date in 2025.
Ammonia is seen as an efficient method of storing and transporting hydrogen because it can be converted back into a clean-burning gas when needed. It can be used as a fuel for a range of industrial applications, such as steel, cement or fertiliser production.
It can also be used for industrial heating and generating power or by ships and other heavy equipment.
Adnoc will develop a blue ammonia project at its downstream centre in Ruwais as it looks to increase the UAE’s hydrogen economy.
The company is working on the design phase of the plant at the Ta’ziz industrial complex, which is being developed in partnership with state holding company ADQ. The plant will have a production capacity of 1,000 kilotonnes a year, Adnoc said yesterday.
Blue ammonia is a more easily transportable fuel source made from blue hydrogen, a by-product of carbon dioxide that has been captured and stored. The blue aspect refers to the hydrogen derived from natural gas feedstocks.
“This is a significant milestone in the development of our blue hydrogen and ammonia business, building on the UAE’s strong position as a producer of competitive, low-carbon natural gas and our leadership role in carbon capture and underground storage,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc.
The UAE is drawing up a comprehensive road map to position itself as an exporter of hydrogen and tap into the clean fuel’s potential.
Globally, the size of the hydrogen industry is expected to hit $183 billion by 2023, up from $129bn in 2017, according to Fitch Solutions.
French investment bank Natixis estimates that investment in hydrogen will exceed $300bn by 2030.
Adnoc, Mubadala and ADQ are part of an alliance to develop a hydrogen economy in the UAE. Adnoc already produces 300,000 tonnes of hydrogen on an annual basis for its downstream operations and plans to increase its output significantly.
The company plans to expand its manufacturing capacity for the clean gas to more than 500,000 tonnes.
The blue ammonia plant will have synergies with Adnoc’s carbon capture project at Al Reyadah, which stores up to 800,000 tonnes of carbon dioxide from local steel production.
UK contractor Wood is undertaking front-end engineering and design work on the ammonia project. The company is also working on six other chemical projects at the Ta’ziz complex.
Adnoc will also undertake a study on the feasibility of supplying the project with blue hydrogen from its downstream operations in Ruwais.
The final investment decision on the project is expected next year, with the start date scheduled for 2025.
Adnoc and ADQ plan to collaborate on projects worth $5 billion at the Ruwais Derivatives Park.
Ta’ziz will invest in chemical projects worth $3bn, with $2bn expected to be spent on the development of the port and infrastructure at Ruwais.
Gulf oil exporters such as the UAE and Saudi Arabia are trying to develop hydrogen as a viable clean fuel to power their economies.
Ammonia is an efficient method of both storing and transporting hydrogen.
It can be used as a fuel for a range of industrial applications, such as steel, cement or fertiliser production. It can also be used for industrial heating, generating power or as fuel for ships and other heavy equipment.
Oman’s state-owned oil company OQ said this month that it is developing one of the largest green hydrogen plants in the world.
The project, which will be built in partnership with Hong Kong-based InterContinental Energy and Kuwaiti clean energy investor EnerTech will be powered by 25 gigawatts of renewable energy.