Satyendra Pathak
Doha
QatarEnergy on Wednesday announced that it will build the world's largest 'blue' ammonia plant with a production capacity of 1.2 million tonnes per year.
To be built with a cost of $1.156 billion, the plant is expected to come online in the first quarter of 2026.
The announcement was made during a ceremony at QatarEnergy’s headquarters in Doha to sign the project agreements, including the engineering, procurement, and construction (EPC) contract. Valued at approximately $1 billion, the EPC contract was awarded to a consortium of ThyssenKrupp and Consolidated Contractors Company (CCC).
Called the Ammonia-7 project, the facility will capture and sequester 1.5 million tonnes of carbon dioxide a year through the manufacturing process.
QatarEnergy’s affiliates, QatarEnergy Renewable Solutions and Qatar Fertiliser Company (QAFCO) signed agreements for the construction of the Ammonia-7 Project, the industry’s first world-scale and largest blue ammonia project.
QatarEnergy Renewable Solutions (owned 100 percent by QatarEnergy) and QAFCO (owned 100 percent by QatarEnergy’s subsidiary, Industries Qatar which is listed on the Qatar Stock Exchange), have joined hands to establish the Ammonia-7 Project.
The new plant will be located in Mesaieed Industrial City (MIC) and will be operated by QAFCO as part of its integrated facilities.
Speaking on the occasion, Minister of State for Energy Affairs and QatarEnergy President and CEO HE Saad Sherida Al Kaabi said, "Ammonia-7 is a landmark project for Qatar and for the industry as a whole. It builds on our 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 space, as well as on our ideal logistical capabilities and advantages to supply differentiated, low carbon products and fuels to the world.”
"Our investment in this project speaks to the concrete steps we are taking to lower the carbon intensity of our energy products, and is a key pillar of QatarEnergy’s sustainability and energy transition strategy,” he said.
Blue ammonia is produced when the CO 2 generated during conventional Ammonia production is captured and stored. Blue Ammonia, which can be transported using conventional ships, can then be used in power stations to produce low-carbon electricity.
Pursuant to the agreements, QatarEnergy Renewable Solutions will develop and manage integrated CCS facilities capable of capturing and sequestering about 1.5 million tonnes of CO2 per annum to cater for the new Ammonia-7 plant and supply more than 35 MW of renewable electricity to the Ammonia-7 facility from its PV Solar Power Plant in MIC that is currently under construction.
It will 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.
QatarEnergy Renewable Solutions 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 a current production capacity of approximately 4 MTPA of Ammonia and 6 MTPA 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 QatarEnergy’s 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 11 million tonnes per annum of CO 2 in Qatar by 2035.
Replying to media persons during a press conference on the occasion, Kaabi said, "QatarEnergy is in negotiation with Asian and European buyers of liquefied natural gas (LNG). We are talking to everybody that wants to buy gas and stops in Qatar to have a discussion. When we're done (negotiating), we sign.”
The minister said he cannot determine whether Europe will face gas shortages this winter because the situation depends on how much gas flows to Europe from pipelines and how much can flow through terminals.
While nascent, the worldwide market for ammonia is expected to grow as it can be shipped and converted into hydrogen, which is considered clean fuel because it doesn’t produce carbon dioxide. Ammonia can also be burned to produce electricity or used as a fertiliser.
To make ammonia, hydrogen is combined with nitrogen. When hydrogen is extracted from natural gas and the carbon dioxide byproduct is captured, the resulting ammonia is considered "blue.”
Blue ammonia is principally used as a raw material for fertiliser and chemicals, but it can also be used as a low-carbon fuel in power stations.