Japan’s Mitsui starts building ammonia plant in UAE

Japanese trading house Mitsui & Co. announced on Tuesday the commencement of construction on a new ammonia production facility in the United Arab Emirates (UAE), in partnership with Abu Dhabi National Oil Company (ADNOC).

This move aligns with Mitsui’s focus on building global supply chains for clean fuels like ammonia and hydrogen, aimed at accelerating the energy transition and combating climate change.

Mitsui has inked a loan agreement with the Japan Bank for International Cooperation (JBIC) to fund the project development. The partners in this venture include TA’ZIZ, a subsidiary of ADNOC, Fertiglobe, and South Korea’s GS Energy.

The plant, located in Al Ruwais, UAE, is set to commence production of one million metric tons of ammonia annually by 2027, with reduced carbon dioxide (CO2) emissions compared to traditional methods.

The facility will be equipped with additional facilities designed to capture and store CO2 emissions generated during the manufacturing process. This paves the way for clean ammonia production, with a target launch by 2030.

Mitsui’s commitment extends beyond initial production. The plant will be equipped with additional facilities designed to capture and store CO2 emissions generated during the manufacturing process. This paves the way for clean ammonia production, with a target launch by 2030.

Mitsui has secured offtake rights for a specific volume of the clean ammonia produced. This will allow them to supply markets in Japan and other Asian countries, catering to applications including fuel, chemical feedstock, and fertiliser production.

The two companies have a successful history of co-developing and managing a liquefied natural gas (LNG) plant in the UAE since the 1970s.

Attribution: Reuters