Labworx

The UAE has taken a significant step forward in reducing the carbon intensity of ammonia produced in the country through the awarding of a construction contract for its low-carbon ammonia production plant in Abu Dhabi. The tender was won by Tecnimont, a subsidiary of the MAIRE Group, and work is expected to begin later this year.

Once operational in 2027, the plant will be capable of producing one million tonnes of ammonia per annum, but with just 50% of the attendant carbon intensity in its first phase. That figure is expected to fall even further as it enters its secondary phase, thus helping to boost the environmental credentials of the country’s energy portfolio.

A TA’ZIZ undertaking

The facility is the brainchild of TA’ZIZ, which is the Abu Dhabi Chemicals Derivatives Company. TA’ZIZ is affiliated with the Abu Dhabi National Oil Company (ADNOC) and first penned a shareholder agreement to construct the plant with three other parties – Fertiglobe, GS Energy Corporation and Mitsui & Co – early last year.

Now, it has taken the further step of selecting a company to undertake the construction and commissioning of the plant. Tecnimont, which has substantial experience in the industry, has won the contract and will begin its task in the third quarter of this year. If all goes to plan, it will become operational during 2027 and will be able to provide enough ammonia to power hundreds of thousands of Emirati homes.

What’s more, a large portion of the value of the contract is set to be funnelled back into the Emirati economy, under the terms of ADNOC’s In-Country Value (ICV) policy. In this way, the facility is expected to boost the national economy, strengthen ammonia supply chains and enhance the country’s manufacturing capacity, all while improving the carbon profile of the energy sector.

A key transitional fuel

Ammonia has long been viewed as an important transitional fuel as the world attempts to ween itself away from oil and gas. However, conventional methods of ammonia production (often known as brown ammonia) still rely on fossil fuels to provide the hydrogen and the power necessary to combine it with nitrogen to produce ammonia. As such, it necessarily entails the emission of greenhouse gases.

Blue ammonia (which the TA’ZIZ plant will focus on) attempts to negate these undesirable outcomes by utilising carbon capture and storage (CCS) technologies. By isolating the carbon at the point of production and removing it from the flue stream, it can slash the carbon intensity of ammonia. In the plant’s first phase, it’s expected that it will have a carbon intensity of just 50% that of traditional methods of production, falling even further as the project progresses.

“As a key transition fuel, ammonia is used in a range of energy applications and represents an unparalleled opportunity to bridge the gap between traditional energy sources and a low-carbon future,” explained Mashal Saoud al-Kindi, CEO of TA’ZIZ.