UAE wants to invest $1bn in blue ammonia – only if Asia demand is there

Blue ammonia, which consists of hydrogen and nitrogen, holds key to addressing rise in global energy needs.

UAE’s Fertiglobe Plc has announced plans to invest over $1bn (£811m) for the production of blue ammonia if Asia is committed to buying it.

The comments were made by CEO Ahmed El-Hoshy in an interview with Bloomberg earlier this week.

Plans to subsidise imports of blue ammonia are on the table for Japan and South Korea. Mr El-Hoshy said that securing contracts under these subsidy programs this year would allow his firm to take a final investment decision on a blue ammonia project in the UAE.

Fertiglobe’s Ta’ziz project in Ruwais will get an upgrade if its proposal gets positive noise. Currently under construction, it is scheduled to begin ammonia production in 2027 using hydrogen from Borouge Plc, the joint venture between the Abu Dhabi Oil Company and Austria-based Borealis.

Blue ammonia is used to fuel power plants and transportation, in addition to being slated as a “climate-friendly” fertiliser.

It can also store and transport low-carbon hydrogen and is used in global supply chains.

In September 2020, Aramco and Japan’s Institute of Energy Economics, successfully demonstrated the production and shipment of 40 tonnes of high-grade blue ammonia  from Saudi Arabia to Japan with support from the Japanese Ministry of Economy, Trade and Industry.

The Abu Dhabi National Oil Company (ADNOC) announced its acquisition of a majority stake in Fertiglobe in October 2024. According to Fertiglobe, this will allow the company to utilise ADNOC’s global ammonia portfolio.