Adnoc agrees to explore production of blue ammonia

9 July, 2021 12:00 AM printer

DUBAI: Abu Dhabi National Oil Company (Adnoc) signed a joint study agreement with three Japanese companies to explore the commercial production of blue ammonia in the UAE.

The new deal was signed with Inpex Corporation, Jera and government-owned Japan Oil, Gas and Metals National Corporation, Adnoc said in a statement on Thursday, report agencies.

“For almost five decades, the UAE and Japan have enjoyed a deep-rooted and successful strategic relationship, underpinned by long-standing energy partnerships,” Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc, said.

“As we increase our focus on the potential of new lower carbon fuels and navigate the energy transition, the UAE and Adnoc are keen to build and strengthen our existing partnerships and seize growth opportunities with Japan that can help produce more energy with fewer emissions.”

The development comes following a virtual meeting between Dr Al Jaber and Kajiyama Hiroshi, Japan’s minister of economy, trade, and industry (Meti).

Currently, Adnoc is developing a world-scale blue ammonia production facility at the Ta’ziz Industrial Chemicals Zone in Ruwais which will have a capacity of 1,000 kilotonnes per year. It is also exploring further opportunities under the new agreement.

“This joint study agreement with Inpex, Jera and Jogmec provide a roadmap for us to deepen access to Japanese markets for Adnoc’s products and further strengthen the UAE’s hydrogen value proposition,” Dr Al Jaber, said. Blue ammonia is a more easily transportable fuel source made from blue hydrogen, a by-product of carbon dioxide that has been captured and stored. It 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.

In January, the UAE and Japan agreed to cooperate on fuel ammonia and carbon recycling technologies following the signing of a cooperation agreement between Adnoc and Japan’s Meti.