Abu Dhabi National Oil Company (ADNOC) announced that it will develop a world-scale blue ammonia production facility in Ruwais, Abu Dhabi, in the United Arab Emirates (UAE), according to ADNOC’s press release.

The facility will be developed at the new TA’ZIZ industrial ecosystem and chemicals hub in Ruwais, which is now in the design phase. Blue ammonia is made of nitrogen and blue hydrogen derived from natural gas feedstocks, with the carbon dioxide by-product from hydrogen production captured and stored.

Ammonia can be utilized as a low-carbon fuel in various industries, including transportation, power generation and industries including steel, cement and fertilization products. The facility’s capacity will be 1,000 kilotons per year.

ADNOC has recently inked a number of agreements to explore hydrogen supply opportunities with customers in key demand centers including Japan and Korea. The company is already a major producer of hydrogen and ammonia, with over 300,000 tons of hydrogen produced per year at the Ruwais Industrial Complex.

Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said “this is a significant milestone in the development of our blue hydrogen and ammonia business, building on the UAE’s strong position as a producer of competitive, low carbon natural gas and our leadership role in carbon capture and underground storage. As we collectively navigate the global energy transition, we believe hydrogen, and its carrier fuels such as ammonia, offer promise and potential as zero carbon energy sources.”

It should be noted that, the final investment decision for the project is expected in 2022. Targeted start-up is by 2025.