Japan’s Idemitsu receives blue ammonia cargo from UAE’s ADNOC for chemical use

Japan’s Idemitsu Kosan Co has received a blue ammonia shipment from the UAE’s Abu Dhabi National Oil Co, it said Dec. 13, as the country’s second-largest refiner seeks to lower its carbon footprint.

Fertiglobe, an UAE-listed company in which Dutch chemical firm OCI and ADNOC have stakes, produced the blue ammonia at its Fertil plant in the industrial hub of Ruwais in the emirate of Abu Dhabi, ADNOC said in a statement Aug. 10. ADNOC didn’t disclose the size or the value of the sale.

“Idemitsu will continue to contribute to the realization of a carbon-neutral society, aiming at the early construction of a supply chain of CO2-free ammonia through cooperation with various domestic and foreign companies,” it said in the Dec. 13 statement.

Idemitsu, which didn’t disclose the size of the shipment, said the cargo was delivered to Yokkaichi Refinery of Showa Yokkaichi Sekiyu Co and will be used “as a chemical application.”

The CO2 from Fertil was recovered and stored for enhanced oil recovery, it said.

ADNOC and Idemitsu “jointly conducted this demonstration of international transportation with the target of constructing a new energy supply chain called CO2-free blue ammonia.”

Premium sale
The Idemitsu cargo, sold at a premium to grey ammonia, comes amid a planned scale-up of blue ammonia production capabilities in Abu Dhabi, which is expected to include a low-cost debottlenecking program at Fertil, ADNOC said at the time.

A joint study agreed July 8 between state-owned Japan Oil, Gas and Metals National Corp. (Jogmec), INPEX and JERA as well as ADNOC will explore the possibility of producing 1 million mt/year of blue ammonia in Abu Dhabi and transporting it to Japan, a Jogmec source previously told S&P Global Platts.

The agreement follows the Japanese Ministry of Economy, Trade and Industry’s first fuel ammonia deal in cooperation with ADNOC in January as Tokyo intends to develop its supply chain of blue ammonia, possibly in the Middle East, by the late 2020s.

Fertiglobe will join ADNOC and sovereign wealth fund ADQ as a partner in a 1 million mt/year blue ammonia project at the TA’ZIZ industrial complex in Ruwais, ADNOC said in June.

Hydrogen price
The design contract for this project has been awarded, with a final investment decision expected in 2022 and startup targeted for 2025.

Platts in November launched new low-carbon hydrogen assessments in the Middle East as the region strives to become a major exporter of the energy carrier.

Platts on Dec. 10 assessed the UAE Hydrogen SMR with CCS (including CAPEX) at $5.7023/kg, an increase of 0.44% on the day.

Blue ammonia is made from nitrogen and blue hydrogen derived from natural gas feedstocks, with the CO2 by-product from hydrogen production captured and stored.

Platts on Dec.10 also assessed Ammonia FOB Middle East at $53.43/MMBtu, up 2.18% on the day.
Source: Platts