TA’ZIZ, Japan’s Mitsui to build ammonia plant in UAE

Japan’s Mitsui has agreed to begin the construction of an ammonia production facility in the UAE with partners TA’ZIZ, a unit of ADNOC Group, Fertiglobe and South Korea’s GS Energy.

The Japanese trading firm said, in a statement, that the facility in Abu Dhabi’s Al Ruwais will have the capacity to produce one million tonnes of low-carbon ammonia per year starting in 2027.

Facilities will be installed in the plant to capture and store carbon dioxide (CO2) emitted during the manufacturing process, with plans to begin production of clean ammonia by 2030.

Mitsui said it will offtake a certain volume of the clean ammonia produced at the plant to supply Japan and other Asian markets, which will be used for fuel, chemical, fertiliser feedstock, and other industrial applications.

The company said it signed a loan agreement with the Japan Bank for International Cooperation to finance the development of the project. The financing facility is co-financed with Sumitomo Mitsui Banking Corporation, providing a total loan of $27m.

Ammonia, primarily produced from hydrogen derived from natural gas and nitrogen extracted from the air, does not emit CO2 when burned. It is principally used as a raw material for fertiliser and chemicals, but it can also serve as a low-carbon fuel in power generation and marine bunker operations.

Mitsui has been operating in the UAE since the 1970s, jointly developing and managing a liquefied natural gas (LNG) plant with ADNOC.

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