Fertiglobe’s $1bn blue ammonia bet hinges on Asia

Abu Dhabi-listed Fertiglobe will invest $1 billion in expanding its blue ammonia plant capacity if Asian countries commit to buying.

The final decision on the investment depends on securing contracts from Japan and South Korea, who have plans to subsidise imports of blue ammonia, CEO Ahmed El-Hoshy told Bloomberg.

The increased production will come through the upgrade of Fertiglobe’s existing project at Ta’ziz in Ruwais, he said.

Work on the facility started in June 2024, with the plant expected to produce one million tonnes per year of ammonia with lower CO2 emissions from 2027.

Headquartered in Abu Dhabi, the company employs more than 2,700 people and was formed as a strategic partnership between OCI Global, a Dutch producer and distributor of nitrogen, methanol and hydrogen products, and state-run Abu Dhabi National Oil Company (Adnoc).

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Last October, state-run Adnoc acquired Amsterdam-based OCI Global’s 50 percent stake plus one share in Fertiglobe. 

The company, which is the largest nitrogen fertiliser producer in the Middle East and North Africa, intends to sell the ammonia for €1,000 ($1,049) a tonne, charging a premium over grey ammonia that is produced from natural gas, Bloomberg said.