Japan’s Mitsui & Co. alongside UAE’s TA’ZIZ, an ADNOC unit, Fertiglobe, and South Korea’s GS Energy Corporation, have agreed to commence construction of a clean ammonia production facility in the UAE. To finance the project, Mitsui & Co. signed a loan agreement with Japan Bank for International Cooperation. Sumitomo Mitsui Banking Corp co-financed the loan, providing a $27 million loan in total.
The project involves the construction of an ammonia production facility in Al Ruwais. Mitsui & Co. expects the plant, upon completion in 2027, to produce 1 million tons per year of ammonia with lower CO2 emissions compared to conventional ammonia.
Carbon dioxide capture to reduce emissions
To reduce carbon dioxide emissions, the plant will include additional facilities to capture and store CO2 emissions from the manufacturing process. The ammonia production plant plans to begin production of clean ammonia by 2030.
In addition to its participation in the production facility in Al Ruwais, Mitsui & Co. will offtake a certain volume of the UAE plant’s clean ammonia to supply Japan and other Asian markets. Therefore, it will be contributing to the decarbonization of society as a whole through its use in fuel applications, chemical and fertilizer feedstock applications, and other industries.
The Japanese company has been handling ammonia for about 50 years now and continues to be the largest importer to Japan for many years. Mitsui & Co. and ADNOC have been jointly developing and managing a liquefied natural gas (LNG) plant in the UAE since the 1970s.
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Decarbonization efforts
“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,” said the company in a statement.
In its medium-term Management Plan 2026, Mitsui & Co. has designated global energy transition as one of its key strategic initiatives. Moreover, the company positioned clean ammonia, which does not emit CO2 during combustion, as one of the promising options for next-generation fuels. Therefore, it will strive to contribute to the realization of a decarbonized society through this business initiative.
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