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ABU DHABI, May 24th 2021, WAM
The Abu Dhabi National Oil Company (ADNOC) announced today that it is working on developing a world-class facility for the production of “blue” ammonia as part of “Enhancing” the new integrated industrial system in the Ruwais complex.
Through this facility, which is in the design phase and will have a production capacity of 1000 kilotons per year, ADNOC is working to strengthen its leadership in the emerging market for hydrogen, and through this project, it continues to contribute to the UAE’s efforts to create local and international value chains for hydrogen and contribute at the same time. In the process of development and economic diversification in the state.
Blue ammonia is manufactured from nitrogen and “blue” hydrogen from natural gas. Hydrocarbons are converted into hydrogen and then into ammonia, with the carbon dioxide emissions associated with this process captured. Ammonia can be used as a low-carbon fuel in a wide range of industrial processes, including transportation, electricity generation, and industries such as steel production, cement and fertilizers.
On this occasion, His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its Group of Companies said: In line with the vision of the wise leadership to promote industrial growth, this project comes as an important step in the production of blue hydrogen and blue ammonia and strengthening the position of the UAE As a low-cost natural gas and carbon producer, in addition to establishing our pioneering role in the field of carbon capture and storage technologies. As the global energy sector transition continues, we are convinced that hydrogen and its fuels, such as ammonia, offer promising potential as carbon-free energy sources.
He added: This step indicates that the promotion projects, which are located near the Ruwais Global Industrial Complex, are proceeding in full swing. There is no doubt that the presence of “promotion” as a catalyst for industrial growth and economic diversification contributes to establishing the UAE’s position as a leading destination for local and international investment and employing modern technology to increase the growth of advanced manufacturing, stimulate the growth of the local industrial sector and increase its economic contribution.
In recent months, ADNOC has signed a number of agreements to explore hydrogen fuel opportunities with customers at major demand centers, including agreements with the Japanese Ministry of Economy, Trade and Industry and the Korean company, GS Energy. This comes in line with the Supreme Petroleum Council’s directive in November 2020 to explore and pursue opportunities in the field of hydrogen projects, and the use of hydrogen as fuel for tankers, such as blue ammonia, to enhance the leadership of the UAE in this field. ADNOC is currently a producer of hydrogen and ammonia, and the quantities of hydrogen it produces at the Ruwais Industrial Complex are more than 300,000 tons annually.
The blue ammonia project benefits from ADNOC’s competitive advantages as a major producer and manager of large natural gas reserves, as well as from its leadership in technology for carbon capture as a by-product of industrial processes, using it and storing it rather than releasing it into the atmosphere. Today, ADNOC operates the Al Reyada facility, the first commercial facility to capture, use and store carbon dioxide. Al Reyada can capture 800,000 tons of carbon dioxide annually from domestic iron and steel production in the UAE.
Wood was awarded design contracts for engineering and preliminary designs for the ammonia project and six additional chemical projects under “promotion”.
In parallel, ADNOC will conduct a feasibility study on supplying blue hydrogen for the project from its Ruwais operations. The final investment decision for the project is expected to be issued in 2022, as it aims to start operations of the project in 2025.
Since the launch of “Tazeez” in November 2020, development work has witnessed significant progress, as comprehensive land and marine surveys of the site have already been completed.
The investment opportunities offered by “Tazeez” attract great interest from local and international investors in various areas of the project system and the value chain, and agreements with the first batch of investors are about to end.
