Qatar intends to invest $1 billion in the production of blue ammonia, a fuel that can be converted into hydrogen in countries seeking to reduce carbon emissions.
Qatar Energy and Qatar Chemical Fertilizers signed agreements to develop a blue ammonia plant capable of producing up to 1.2 million tons per year, according to the Minister of Energy and CEO of Qatar Energy Company Saad Sherida al-Kaabi.
Production is expected to start in the first quarter of 2026 in Mesaieed Industrial City (MIC).
The contract to build the Ammonia-7 plant has been awarded to Germany’s Thyssen Krupp AG and Greece’s Consolidated Contractors Co, according to a statement from Qatar Energy.
The global market for ammonia is nascent, but it is expected to grow as it can be shipped and converted into hydrogen, which is considered clean fuel because it emits no CO2.
According to the statement, once the blue ammonia plant is operational in the first quarter of 2026, approximately 1.5 million tons of carbon dioxide will be captured and sequestered (removed) from the ammonia-making process annually.
Qatar plans to build carbon capture and storage facilities capable of sequestering up to 11 million tons of CO2 annually by 2035.
