25-06-2024
Construction begins on clean ammonia production facility in UAE
Mitsui & Co., Ltd, alongside TA'ZIZ, Fertiglobe, and South Korea's GS Energy Corporation, has agreed to commence construction of an ammonia production facility in the United Arab Emirates. In addition, Mitsui has signed a loan agreement with Japan Bank for International Cooperation to finance the development of the project.
The project involves the construction of an ammonia production facility in Al Ruwais, UAE. Starting from 2027, the plant is expected to produce 1 million tons per year of ammonia with lower CO2 emissions compared to conventional ammonia. To achieve CO2 emission reductions, additional facilities will be installed in the plant to capture and store CO2 emitted in the manufacturing process, with plans to begin production of clean ammonia by 2030. In addition to its participation in the project, Mitsui will offtake a certain volume of the clean ammonia produced at the plant for supplying Japan and other Asian markets, thereby contributing to the decarbonization of society as a whole, through its use in fuel applications, chemical and fertilizer feedstock applications, and other industries.
Mitsui has been handling ammonia for about 50 years, and continues to be the largest importer to Japan for many years. Mitsui and ADNOC have been jointly developing and managing liquefied natural gas (LNG) plant in the UAE since the 1970s. By combining cross-industry expertise and partnerships cultivated through our existing businesses, we will promote the establishment of a clean ammonia supply chain, and respond to the decarbonization needs of each country and region.
In its Medium-term Management Plan 2026, Mitsui has designated Global Energy Transition as one of its Key Strategic Initiatives, and positioned clean ammonia, which does not emit CO2 during combustion, as one of the promising options for next-generation fuels, and will strive to contribute to the realization of a decarbonized society through this business initiative.
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