Abu Dhabi National Oil Company (Adnoc) has announced that it will advance a world-scale “blue” ammonia production facility in Ruwais, Abu Dhabi, in the UAE.

Adnoc is an early pioneer in the emerging hydrogen market, driving the UAE’s leadership in creating local and international hydrogen value chains, while contributing to economic growth and diversification in the UAE. The facility, which has moved to the design phase, will be developed at the new TA’ZIZ industrial ecosystem and chemicals hub in Ruwais.

Blue ammonia is made from nitrogen and “blue” hydrogen derived from natural gas feedstocks, with the carbon dioxide by-product from hydrogen production captured and stored. Ammonia can be used as a low-carbon fuel across a wide range of industrial applications, including transportation, power generation and industries including steel, cement and fertiliser production. The facility’s capacity will be 1,000 kilotonnes per annum.

In recent months, Adnoc has signed a number of agreements to explore hydrogen supply opportunities with customers in key demand centres including the Ministry of Economy, Trade and Industry of Japan and Korea’s GS Energy. This builds on the mandate given to Adnoc from the Supreme Petroleum Council in November 2020, to explore opportunities in hydrogen and hydrogen carrier fuels such as blue ammonia, with the ambition to position the UAE as a hydrogen leader. Adnoc is already a major producer of hydrogen and ammonia, with over 300,000 tonnes of hydrogen produced per annum at the Ruwais Industrial Complex.

Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO, said: “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. As we collectively navigate the global energy transition, we believe hydrogen, and its carrier fuels such as ammonia, offer promise and potential as zero carbon energy sources.

“The development also signals that the TA’ZIZ industrial ecosystem is moving ahead at speed in Ruwais. With TA’ZIZ as a key catalyst, we are well placed to further strengthen our position as a leading destination for local and international investment, leveraging technology to further grow the UAE’s advanced manufacturing and industrial base.”

The project will build on the UAE’s position as a major producer and reserves holder of natural gas and leadership in Carbon Capture Utilisation and Storage (CCUS).