Abu Dhabi National Oil Company and holding company ADQ signed an agreement with Japan's Mitsui and South Korea's GS Energy to help develop a blue ammonia project in the emirate's downstream hub of Ruwais in partnership with Ta’ziz and Fertiglobe.
“The strategic partnerships with Mitsui and GS Energy, two of East Asia’s global energy champions, reflect Adnoc's commitment to increase the production of low-carbon hydrogen and ammonia," said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and group chief executive and managing director of Adnoc.
The agreements build on Adnoc's previous sales of blue ammonia to Japan and South Korea.
"As the world embraces the energy transition, we will work closely with our new partners to jointly develop new hydrogen markets and applications for low-carbon ammonia to meet the needs of global export markets for the energy and industry markets in Japan and Korea," Dr Al Jaber said.
Fertiglobe, the joint venture between Adnoc and Amsterdam-listed OCI, is developing a large blue ammonia plant in the UAE’s downstream hub in Ruwais. The plant will have a production capacity of 1,000 kilotonnes a year.
Blue ammonia is a chemical compound produced using hydrogen, manufactured through steam methane reformation. Ammonia is one of the easiest ways to store and transport hydrogen.
Gulf oil exporters are increasingly prioritising the development of hydrogen, a cleaner fuel, that is considered a viable tool for decarbonisation.
This year, Adnoc formed a hydrogen alliance with ADQ and investment company Mubadala for the development of the hydrogen economy in the UAE.
Opec's third-largest producer is looking to capitalise on its existing hydrocarbon trade ties with crude importers such as Japan and South Korea, to sell cleaner forms of the fuel.
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Adipec 2021 in pictures
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Suhail Al Mazrouei, Minister of Energy and Infrastructure, speaks at the Abu Dhabi International Petroleum Exhibition and Conference. All photos: Victor Besa / The National -
Mohamed El-Erian, chief economic adviser of Allianz, addresses a session at Adipec. -
Paul Polman, former chief executive of Unilever and co-chair at Global Commission for Economy and Climate, attends a session at Adipec. -
Adipec participants attend a session with Paul Polman, former chief executive of Unilever and co-chair at Global Commission for Economy and Climate, holding centre stage. -
Adipec will run from November 15 to November 18 at the Abu Dhabi National Exhibition Centre. -
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, says oil and gas industry will have to invest more than $600bn annually until 2030 to keep up with expected demand. -
Adipec 2021 is the first major global event after Cop26, which concluded on Sunday. -
Adipec is said to be a critical bellwether for the fortunes of the energy industry in the middle of great change. -
Dr Fatih Birol, left, executive director of International Energy Agency, and John Defterios, Professor of Business at NYU Abu Dhabi attend an Adipec session. -
This year's event is taking place after the UAE, Saudi Arabia and Bahrain all committed to achieving a net-zero future by the middle of the century. -
Alfred Stern, chief executive of OMV, attends a panel discussion on 'What is the New Normal for Demand?' -
Yousef Gamal El Din, anchor of Bloomberg, and Russell Hardy, chief executive at Vitol, during a session on 'Trading Spotlight: The Diversification of Energy Markets'. -
Nicolas Terraz, of TotalEnergies, attends Adipec session on 'What is the New Normal for Demand?' -
Yaser Al Mazrouei, executive director of Upstream Directorate at Adnoc, attends the Adipec session on 'What is the New Normal for Demand?' -
Lorenzo Simonelli, chairman and chief executive of Baker and Hughes, during the Adipec session on 'What is the New Normal for Demand?' -
Mansoor Al Hamed, chief executive of Mubadala Petroleum, attends the Adipec session on 'What is the New Normal for Demand?' -
Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, attends the opening ceremony at the 37th Abu Dhabi International Petroleum Conference and Exhibition. Photo: @HHMansour via Twitter -
Sheikh Mansour bin Zayed and Dr Sultan Al Jaber take in the atmosphere at the 37th Adipec. Photo: @HHMansour via Twitter
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Adnoc already produces 300,000 tonnes of hydrogen on an annual basis for its downstream operations and plans to increase its output significantly.
Mitsui and GS Energy in return for their equity participation will offtake significant volumes of blue ammonia, to meet the growing demand for energy and industry in Japan and South Korea, respectively.
Earlier this year, Adnoc sold volumes of blue ammonia to Japan's Inpex, Idemitsu as well as trading house Itochu for use in fertiliser production.
Hydrogen has been earmarked for industrial decarbonisation in Japan.
Saudi Aramco has also prioritised the development of blue and green hydrogen. The green variant is produced through electrolysis powered by renewable sources such as solar and wind. The company said it was exploring opportunities in blue hydrogen and is actively looking at exporting to key markets in Asia.
