Qatar is beginning construction on what they are calling the world’s largest blue ammonia facility as the country seeks to diversify and expand its energy industry. Already one of the world’s largest exporters of LNG and rapidly expanding its north field, QatarEnergy plans to add blue ammonia, citing the ability to leverage its experience in gas.
Blue Ammonia is produced when the CO2 generated during conventional ammonia production is captured and stored. Blue Ammonia can be transported using conventional ships and be used in power stations to produce low-carbon electricity and potential future applications in other hard to decarbonize industries.
QatarEnergy’s affiliates, QatarEnergy Renewable Solutions and Qatar Fertilizer Company (QAFCO) signed agreements for the construction of the Ammonia-7 Project, which will have a capacity of 1.2 million tons per annum (MTPA) of Blue Ammonia. With a target start-up date of the first quarter of 2026, they expect it will become the industry’s first world-scale and largest Blue Ammonia project.
The new plant will be located in Mesaieed Industrial City and will be operated by QAFCO as part of its integrated facilities. QAFCO is already among the top ammonia and urea producers in the world, with an annual production capacity of 3.8 million MT of ammonia and 5.6 million MT of urea. QAFCO is reported to be the world’s largest single-site producer of ammonia and urea.
“Ammonia-7 is a landmark project for Qatar and the industry as a whole,” said His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs. “It builds on our expertise in installing, operating and maintaining conventional ammonia plants to produce fertilizers. 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.”
During a ceremony in Doha, the companies entered into project agreements valued at approximately $1 billion for the engineering, procurement, and construction of the facility. The contracts were awarded to a consortium of ThyssenKrupp and Consolidated Contractors Company (CCC).
QatarEnergy Renewable Solutions will develop and manage integrated CCS facilities capable of capturing and sequestering about 1.5 million tons of CO2 per annum, to cater to the new Ammonia-7 plant. They also committed to supplying more than 35 MW of renewable electricity to the Ammonia-7 facility from its PV Solar Power Plant in MIC, which is currently under construction. They will also develop and lead the process for certifying the product produced by the Ammonia-7 facility as Blue Ammonia, and once in production will be the sole off-taker and marketer of all Blue Ammonia produced by Ammonia-7.
The minister highlighted the project as a demonstration of Qatar’s steps to lower the carbon intensity of its energy products, and as a key pillar of QatarEnergy’s sustainability and energy transition strategy.