Blue Ammonia, Methanol Deals Firm in UAE

It was Abu Dhabi Sustainability Week (ADSW), and much news was released Jan. 18-19 regarding the firming up of blue ammonia and methanol deals, carbon capture initiatives, and the planting of mangrove trees.

Abu Dhabi Chemicals Derivatives Company RSC Ltd. (TA’ZIZ) announced the signing of a shareholder agreement with Fertiglobe, GS Energy Corp. (GS Energy), and Mitsui & Co. Ltd. (Mitsui) to develop an anticipated 1 million mt/y blue ammonia production facility at the TA’ZIZ Industrial Chemicals Zone. This deal has been in the works for some time (GM Nov. 19, 2021).

TA’ZIZ noted the exceptional international investor interest it is receiving and that the news follows ADNOC and Fertiglobe’s recent sales of low-carbon ammonia demonstration cargos to customers in Japan, Korea, and Germany.

TA’ZIZ, a joint venture between Abu Dhabi National Oil Co. (ADNOC) and Abu Dhabi Holding Co. (ADQ), likewise solidified a deal with Swiss-based Proman Ag for a 1.8 million mt/y methanol plant.

In addition to the ammonia and methanol projects, TA’ZIZ said it continues to advance with site preparation underway and strategic agreements signed for the development of a world-scale ethylene dichloride (EDC), chlor-alkali, polyvinyl chloride (PVC) production facility with Reliance Industries and Shaheen. The total investment in the first phase of TA’ZIZ will be in excess of $5 billion (AED18 billion), with most of the chemicals produced to be created in the UAE for the first time.

ADNOC also announced that it has begun work on the world’s first fully sequestered CO2 injection well in a carbonate saline aquifer. The project is expected to begin injections in second-quarter 2023.

Once fully operational, it will initially fully sequester a minimum of 18,000 mt/y of CO2 captured from Fertiglobe’s UAE operations for injection in Abu Dhabi’s onshore carbonate aquifers. The project adds to ADNOC’s existing facility in Al Reyadah, which has the capacity to capture up to 800,000 mt/y of CO2.

In addition, ADNOC announced that it has signed a contract with Distant Imagery, a UAE-based environmental technology company, to plant 2.5 million mangrove seedlings across Abu Dhabi using drone planting technology developed by the Environment Agency-Abu Dhabi (EAD).