Adnoc to explore blue ammonia production in partnership with Japanese companies
▶ A joint study agreement was signed with Inpex Corporation, Jera and Japan Oil, Gas and Metals Corporation
Abu Dhabi National Oil Company signed a joint study agreement with three Japanese companies to explore the commercial production of blue ammonia in the UAE.
The deal was signed with Inpex Corporation, Jera and government-owned Japan Oil, Gas and Metals National Corporation, Adnoc said on Thursday.
“For almost five decades, the UAE and Japan have enjoyed a deep-rooted and successful strategic relationship, underpinned by long-standing energy partnerships,” said Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc.
“As we increase our focus on the potential of new lower carbon fuels and navigate the energy transition, the UAE and Adnoc are keen to build and strengthen our existing partnerships and seize growth opportunities with Japan that can help produce more energy with fewer emissions.”
The development comes after an online meeting between Dr Al Jaber and Kajiyama Hiroshi, Japan’s Minister of Economy, Trade and industry.
Currently, Adnoc is developing a world-scale blue ammonia production facility at the Ta’ziz Industrial Chemicals Zone in Ruwais, which will have a capacity of 1,000 kilotonnes a year.
It is also exploring further opportunities under the new agreement.
“This joint study agreement with Inpex, Jera and Jogmec provide a roadmap for us to deepen access to Japanese markets for Adnoc’s products
and further strengthen the UAE’s hydrogen value proposition,” Dr Al Jaber said.
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.
It can be used as a low-carbon fuel across a wide range of industrial applications, including transport, power generation and industries including steel cement and fertiliser production.
Adnoc is using its status as a long-standing reliable and stable supplier of oil and gas to Japan to nurture new partnership opportunities between both countries.
Japan is Adnoc’s largest international importer of oil and gas products with about 25 per cent of its crude imported from the UAE, according to its statement.
In January, the UAE and Japan agreed to co-operate on fuel ammonia and carbon recycling technologies after the signing of an agreement between Adnoc and Japan’s Meti.
The UAE and Japan enjoy strong bilateral economic relations dating back to 1961. This is when the first shipment of UAE crude oil was exported from the Umm Al Shaif offshore field in Abu Dhabi to Japan.
During the meeting, the ministers also reviewed joint efforts
between both countries to enhance industrial co-operation and drive opportunities for partnerships in hydrogen, renewables and climate change.
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.
Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities. In addition to this, is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases sixfold.
Globally, the size of the hydrogen industry is expected to reach $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.
In January this year, Adnoc, Mubadala and ADQ formed an alliance to develop a hydrogen economy in the UAE, focusing on low-carbon green and blue hydrogen as part of the country’s continued energy diversification efforts.
Earlier this week, Abu Dhabi National Energy Company, also known as Taqa, and Abu Dhabi Ports announced their plans to develop a 2-gigawatt green ammonia project in the UAE.
The planned project will tap a solar photovoltaic plant to power an electrolyser to produce green hydrogen, which will in turn be processed into liquid ammonia.
The green ammonia will be used in ships as bunker fuel as well as for export from Abu Dhabi Ports through gas carriers.
Globally, the size of the hydrogen industry is expected to reach $183bn by 2023, up from $129bn in 2017