ADNOC moves forward plans for 1 million mt blue ammonia plant

London, (Quantum Commodity Intelligence) – Abu Dhabi National Oil Company (ADNOC) has moved to the design phase for its plans to build a 1 million mt/year "blue" ammonia production facility, after signing a series of agreements in recent months to explore supply to customers in Asia, the company announced Monday.

Blue ammonia is standard ammonia produced using carbon-saving "blue" hydrogen as a feedstock and can be used in a range of important industrial applications, power generation and potentially as fuel in shipping.

Blue hydrogen is made using natural gas followed by a carbon capture and storage (CCUS) process, which stores away damaging emissions instead of releasing them into the atmosphere.

"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," said Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.

"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," he added.

ADNOC signed an agreement with Japan's Ministry of Economy, Trade and Industry (METI) in January to cooperate on ammonia supply, followed by another deal in April to cooperate on hydrogen.

South Korean refiner SK Energy entered into an agreement in March to develop blue hydrogen in the UAE, while it is investing 18.5 trillion won ($16.4 bn) in a 280,000 mt/year hydrogen system in Incheon, South Korea.