QatarEnergy and QAFCO launch world’s largest blue ammonia facility

QatarEnergy to build ‘world’s largest blue ammonia facility’

QatarEnergy’s affiliates QatarEnergy Renewable Solutions and Qatar Fertiliser Company (QAFCO) have signed agreements for the construction of the Ammonia-7 Project, the ‘first world-scale and largest blue ammonia facility’ project.

Courtesy of QatarEnergy
QatarEnergy and QAFCO launch world’s largest blue ammonia facility
Courtesy of QatarEnergy

QatarEnergy is to build this large blue ammonia plant that will come online in the first quarter of 2026. The facility is to produce 1.2 million tonnes per year of blue ammonia. According to the company, this makes it the world’s largest such facility.

The project will be located in Mesaieed Industrial City (MIC) and will be operated by QAFCO as part of its integrated facilities.

Therefore, QatarEnergy Renewable Solutions (owned 100 per cent by QatarEnergy) and QAFCO (owned 100 per cent by QatarEnergy’s subsidiary, Industries Qatar) have joined hands to establish the Ammonia-7 Project.

The announcement was made during a ceremony held today at QatarEnergy’s headquarters in Doha to sign the project agreements, including the engineering, procurement, and construction (EPC) contract.

Valued at approximately $1 billion USD, the EPC contract was awarded to a consortium of ThyssenKrupp and Consolidated Contractors Company (CCC).

Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and CEO of QatarEnergy, said: “Ammonia-7 is a landmark project for Qatar and for the industry as a whole. …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 added.

Blue ammonia is produced when the CO2 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.

QatarEnergy Renewable Solutions will develop and manage integrated CCS facilities capable of capturing and sequestering about 1.5 million tonness of CO2 per annum, to cater to the new Ammonia-7 plant. It will also supply more than 35 megawatts of renewable electricity to the Ammonia-7 facility from its PV Solar Power Plant in MIC, which is currently under construction.

In addition, it will develop and lead the process for certifying the product produced by the Ammonia-7 facility as blue ammonia, with the involvement of industry experts and relevant independent bodies.

The company will be the sole off-taker and marketer of all blue ammonia produced by Ammonia-7.

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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 emphasizes QatarEnergy’s commitment to facilitating 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 CO2 in Qatar by 2035.