ADNOC grabs bigger stake in Fertiglobe, gears up for ammonia boom

In the UAE, ADNOC completed its acquisition of a majority stake in Fertiglobe, raising its ownership to 86.2% and marking a pivotal moment in ADNOC’s ambition to become a global leader in low-carbon ammonia. As part of ADNOC’s plan to become a top global player in low-carbon fuels, Fertiglobe is set to expand its ammonia production capacity to 8.6 million tons annually, focusing heavily on low-carbon ammonia for global decarbonization efforts.

A notable milestone for Fertiglobe is the recent €397 million offtake agreement under the H2Global initiative. This deal secures the supply of renewable ammonia to Europe at a delivered price of €1,000 per ton until 2033. This contract, a first of its kind, reflects the rising demand for low-carbon ammonia in key sectors, including maritime fuel, where ammonia is viewed as a potential clean alternative to reduce emissions.

ADNOC plans to integrate its portfolio of low-carbon ammonia projects under Fertiglobe, including two projects in Abu Dhabi, which are expected to more than double Fertiglobe’s current ammonia capacity. This expansion will help Fertiglobe meet the rising global demand for low-carbon ammonia, which is projected to grow to 24 million tons by 2032.

More on the story.