Qatar is establishing the world's largest blue ammonia facility with a capacity of 1.2mn tonnes per annum as part of the country's strategy to offer low-carbon energy solution for a sustainable future.
QatarEnergy’s affiliates, QatarEnergy Renewable Solutions (QRS) and Qatar Fertiliser Company (Qafco) signed the agreements for the construction of the Ammonia-7 project, the industry’s first world-scale as well as the largest blue ammonia train, which is expected to come into operation by the first quarter of 2026.
Blue ammonia is produced when the carbon dioxide generated during conventional ammonia production is captured and stored. It can be transported using conventional ships and then be used in power stations to produce low-carbon electricity.
The new plant, which is estimated to cost $1.156bn, will be located in the Mesaieed Industrial City (MIC) and will be operated by Qafco as part of its integrated facilities.
The announcement was made at a ceremony held yesterday at QatarEnergy’s headquarters to sign the project agreements, including the engineering, procurement, and construction (EPC) contract. Valued at approximately $1bn, the EPC contract was awarded to a consortium of ThyssenKrupp and Consolidated Contractors Company (CCC).
The ceremony was attended by HE Saad Sherida al-Kaabi, the Minister of State for Energy Affairs, president and chief executive officer (CEO) of QatarEnergy; Abdulrahman al-Suwaidi, CEO of Qafco; Martina Merz, CEO of ThyssenKrupp; Dr. Cord Landsmann, CEO of ThyssenKrupp Uhde; and Oussama El-Jerbi, CCC area managing director (Qatar).
"Potential customers have expressed a desire for low carbon fuels including blue ammonia and we have reacted in a pragmatic and meaningful manner with scale," al-Kaabi said.
The QRS will build specialised facilities that will capture and sequester around 1.5mn tonnes of carbon dioxide per annum from the ammonia production process, and will provide more than 35MW of renewable electric power to the Ammonia-7 facility from its solar power plant, which is currently under construction in Mesaieed, he said.
It would develop and lead the process for certifying the product produced by the Ammonia-7 facility as blue ammonia, with the involvement of leading industry experts and relevant independent bodies; and be the sole off-taker and marketer of all blue ammonia produced by Ammonia-7.
Terming the Ammonia-7 as a "landmark" project for Qatar and for the industry as a whole; al-Kaabi said it builds on the expertise in installing, operating, and maintaining conventional ammonia plants to produce fertilisers.
"We are also building on our unique position in the renewables and carbon capture and sequestration (CCS) space, as well as on our ideal logistical capabilities and advantages to supply differentiated, low carbon products and fuels to the world,” he added.
QRS is a wholly-owned affiliate of QatarEnergy charged with investing in and marketing of renewable energy and sustainability products and solutions within Qatar and across the globe. Qafco is the world’s largest integrated single-site producer of ammonia and urea, with current production capacity of 4Mtpa of ammonia and 6Mtpa of urea.
The investment in blue ammonia and the expanded CCS facilities are part of the steps QatarEnergy is taking to deliver on its sustainability strategy, which emphasises its commitment, as a major energy producer, to the responsible production of clean and affordable energy to facilitate the energy transition.
The strategy stipulates multiple initiatives to reduce greenhouse gas emissions, including flagship projects such as the further deployment of carbon capture and storage technology to capture over 11mn tonnes per annum of carbon dioxide in Qatar by 2035.
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