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Expansion of low-carbon ammonia project in the UAE in the engineering stage Abu Dhabi-based Fertiglobe, the largest nitrogen fertiliser producer in the Middle East and North Africa (MENA), anticipates final investment decision (FID) on two clean hydrogen and ammonia projects in the US and Egypt in 2025, according to the ADX-listed company’s fourth quarter 2024 result update. The company said it expects a final investment decision (FID) on the ADNOC-ExxonMobil low-carbon hydrogen and ammonia project in the US this year. “The FID on the project [located in Baytown, Texas] is expected in 2025 with anticipated start-up in 2029,” the results statement said. ADNOC’s equity stake of 35 percent will be transferred to Fertiglobe at cost when the project is ready for start-up. “Contingent on supportive government policy and necessary regulatory permits, the projects capacity is 1 billion cubic feet (bcf) daily of low-carbon hydrogen (~98% CO2 removed) and 1 million tonnes per annum (mtpa) of low-carbon ammonia,” the statement said. Egypt Green Hydrogen The Egypt Green Hydrogen project expects to reach FID in the first half of 2025 on the back of demand and pricing support secured from H2Global, the statement said. The project comprises a 100 negawatts (MW) electrolyser facility to produce renewable hydrogen to be used as feedstock for the production of renewable ammonia (around 74,000 tons) at Fertiglobe’s existing ammonia facilities in Ain Sokhna, Egypt. Production is planned to start in 2027. UAE low-carbon ammonia projects Meanwhile, construction has started on the 1-mtpa low-carbon ammonia project in the UAE in the third quarter of 2024, with operations expected to commence in 2027. “A preliminary Life Cycle Assessment study estimates that Phase 1 of the plant will produce 50 percent lower-carbon intensity ammonia compared to conventional ammonia. In the second stage, this plant will further reduce its carbon intensity via capturing and sequestering CO2 emissions,” the statement noted. Fertiglobe owns a 30 percent stake in the project and will consolidate ADNOC’s stake at cost when ready for start-up, taking its ownership to 54 percent. Also, development and engineering work is underway for the projects planned 1-mtpa capacity expansion. “[The] project is currently in the development and engineering stage with Fertiglobe closely involved in its development until FID and potential start of commercial operations,” the statement said. ADNOC’s full equity stake in the project will be transferred to Fertiglobe at cost when ready for start-up. |
