The Abu Dhabi National Oil Company (ADNOC) has sold its first cargo of blue ammonia to Itochu in Japan, for use in fertilizer production. The sale builds upon recently unveiled joint efforts to enhance industrial cooperation between the UAE and Japan and support the development of new UAE-Japan blue ammonia supply chains.

Fertiglobe, a 58:42 partnership between OCI and ADNOC, will produce blue ammonia at its Fertil plant in the Ruwais Industrial Complex in Abu Dhabi for delivery to ADNOC’s customers in Japan. The shipments, which were sold at an attractive premium to grey ammonia, underscore the favorable economics for blue ammonia as an emerging source of low-carbon energy. In addition, it was announced in June that Fertiglobe will join ADNOC and ADQ as a partner in a new 1 MM metric t per annum blue ammonia project at TA’ZIZ in Ruwais, subject to regulatory approvals.

While the ammonia Fertil produces is typically considered as “grey” ammonia, the plant will be fitted with CO₂ liquefaction units, and CO₂ will be transferred to - and reinjected into - underground reservoirs by the ADNOC Al Reyadah carbon capture and storage plant to facilitate the production of blue ammonia. 

Ammonia can be used as a low-carbon fuel across a wide range of industrial applications, including transportation, power generation, refining and industries including steel, wastewater treatment, cement and fertilizer production. For Japan, in particular, hydrogen and its carrier fuels, such as blue ammonia, are expected to play an important role in the country’s ongoing industrial decarbonization efforts. 

ADNOC announced in May that it will advance a world-scale blue ammonia production facility at the TA’ZIZ industrial ecosystem in Ruwais, Abu Dhabi. The design contract for this project has already been awarded, with a final investment decision for the project expected in 2022, and start-up targeted for 2025. The facility’s capacity will be 1 MMt per annum. In June, Fertiglobe entered an agreement to join the project, subject to regulatory approvals.

"Starting with this trial of blue ammonia for fertilizer applications, we aim to create a wide range of ammonia value chains for existing industrial applications as well as future energy use. By collaborating with ADNOC and Fertiglobe, we expect to initiate and enhance our industrial portfolio in the fertilizer sector while achieving our commitments towards decarbonization activities in other industries," said Masaya Tanaka, Executive Officer of ITOCHU Corporation, President of the Energy & Chemicals Company and COO of the Power & Environmental Solution Division.