Fertiglobe aims to secure more long-term sales contracts for low-carbon ammonia, following Adnoc’s acquisition of a majority stake in the company, according to its chief executive.
The move will “accelerate” exports of the commodity, in which the carbon dioxide emitted during production is captured and stored underground, and it will do so on a “cost-advantage” basis, Ahmed El Hoshy told The National in an interview.
“With the work Fertiglobe has already been doing, combined with Adnoc now integrating into it, our ability to market this to end users for long-term, enduring contracts will [improve],” he said.
On Tuesday, the Abu Dhabi-based energy company announced the completion of its acquisition of Netherlands-based OCI Global’s stake in Fertiglobe, increasing its share in the company to 86.2 per cent.
In December, they entered into a binding agreement for Adnoc to purchase OCI's entire stake in Fertiglobe for $3.62 billion.
Adnoc will transfer its stakes in all current and future low-carbon ammonia projects, including two in Abu Dhabi, to Fertiglobe at cost, Mr El Hoshy said.
The Abu Dhabi plants will add about two million tonnes per annum (mtpa), more than doubling Fertiglobe's merchant ammonia capacity to 1.6 mtpa and increasing its total sellable capacity to 8.6 mtpa of ammonia and urea.
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, with roughly 10 per cent collective market share of global trade in those products, according to Adnoc.
Mr El Hoshy said that expanding the company's involvement in low-carbon ammonia production can help stabilise its earnings.
“We can get a delivered price that's just based on our gas costs. We can create that kind of predictable revenue stream,” he said.
Nitrogen fertiliser prices have experienced significant volatility in recent years, largely due to the Covid-19 pandemic, the Russia-Ukraine war, and the resulting supply chain disruptions.
Fertiglobe expects low-carbon ammonia to make up most of the company’s ammonia output in the longer-term, with production of the fuel expected to “double and potentially triple”, Mr El Hoshy said.
This year, the company won Germany-based H2Global’s first pilot auction for renewable ammonia. Fertiglobe will produce up to 397,000 tonnes of renewable ammonia by 2033, starting with an initial output of 19,500 tonnes in 2027, an H2Global entity said at the time.
In upcoming projects that will be transferred to Fertiglobe by Adnoc upon completion, “every single incremental tonne will be low-carbon, at least 50 per cent lower carbon than a typical grey ammonia tonne”, Mr El Hoshy said.
Currently, the company mainly produces grey ammonia, which is used as a component in fertilisers and chemicals. However, the production process releases carbon dioxide emissions that are not captured.
EU carbon tax
The UAE's move into cleaner forms of ammonia comes as the EU prepares to fully implement the Carbon Border Adjustment Mechanism (CBAM) in 2026.
CBAM, which seeks to protect European companies that pay for their emissions under the EU's trading system from unfair competition, will impose a carbon price on certain goods imported into the bloc.
The regulation currently focuses on carbon-intensive goods such as cement, iron and steel, aluminium, fertilisers, electricity and hydrogen products.
“There's no price of carbon that's properly implemented yet, CBAM will be the first taste of that in 2026 and … then [we will be] able to get an advantage if we produce less carbon when we make the ammonia,” Mr El Hoshy said.
“This is going to allow us to accelerate the decarbonisation of our ammonia production. That allows us not only to have the gas advantage we have sitting in the Middle East … but also the CO2 cost advantage.”
With Adnoc's international ammonia projects set to become a part of Fertiglobe, the company could explore beneficial strategies such as product exchanges, Mr El Hoshy said.
For example, instead of shipping US-produced ammonia through the Panama Canal to Asia, the US plant can supply Europe, saving on freight costs, while the Abu Dhabi plant ships to Asia. This would reduce both shipping expenses and emissions, he added.
Last month, Adnoc announced the acquisition of a 35 per cent equity stake in oil major ExxonMobil’s proposed blue hydrogen and ammonia production facility in Texas.
The project, set to be the “world’s largest” of its kind, will be capable of producing up to one billion cubic feet daily of blue hydrogen, with about 98 per cent of carbon dioxide removed, and more than one million tonnes of low-carbon ammonia per year, Adnoc said at the time.
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Haltia.ai%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Arto%20Bendiken%20and%20Talal%20Thabet%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20AI%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2041%0D%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20About%20%241.7%20million%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self%2C%20family%20and%20friends%26nbsp%3B%3C%2Fp%3E%0A
Zayed Sustainability Prize
Killing of Qassem Suleimani
More from Neighbourhood Watch:
UAE currency: the story behind the money in your pockets
Mohammed bin Zayed Majlis
The biog
Favourite book: Animal Farm by George Orwell
Favourite music: Classical
Hobbies: Reading and writing
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
The five pillars of Islam
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival
More from Neighbourhood Watch:
Killing of Qassem Suleimani
More from Neighbourhood Watch:
More on animal trafficking
A%20QUIET%20PLACE
%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Lupita%20Nyong'o%2C%20Joseph%20Quinn%2C%20Djimon%20Hounsou%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EMichael%20Sarnoski%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
More from Rashmee Roshan Lall
The Indoor Cricket World Cup
When: September 16-23
Where: Insportz, Dubai
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
Read more about the coronavirus
MADAME%20WEB
%3Cp%3EDirector%3A%20S.J.%20Clarkson%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Dakota%20Johnson%2C%20Tahar%20Rahim%2C%20Sydney%20Sweeney%3C%2Fp%3E%0A%3Cp%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
More coverage from the Future Forum
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
More on Quran memorisation:
KILLING OF QASSEM SULEIMANI
HIJRA
Starring: Lamar Faden, Khairiah Nathmy, Nawaf Al-Dhufairy
Director: Shahad Ameen
Rating: 3/5
MATCH INFO
Manchester United 1 (Fernandes pen 2') Tottenham Hotspur 6 (Ndombele 4', Son 7' & 37' Kane (30' & pen 79, Aurier 51')
Man of the match Son Heung-min (Tottenham)
We Weren’t Supposed to Survive But We Did
We weren’t supposed to survive but we did.
We weren’t supposed to remember but we did.
We weren’t supposed to write but we did.
We weren’t supposed to fight but we did.
We weren’t supposed to organise but we did.
We weren’t supposed to rap but we did.
We weren’t supposed to find allies but we did.
We weren’t supposed to grow communities but we did.
We weren’t supposed to return but WE ARE.
Amira Sakalla
The years Ramadan fell in May
Mohammed bin Zayed Majlis
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
More from Neighbourhood Watch
The%20specs%3A%202024%20Mercedes%20E200
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%20four-cyl%20turbo%20%2B%20mild%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E204hp%20at%205%2C800rpm%20%2B23hp%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C800rpm%20%2B205Nm%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E9-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E7.3L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENovember%2FDecember%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh205%2C000%20(estimate)%3C%2Fp%3E%0A
MATCH INFO
Argentina 47 (Tries: Sanchez, Tuculet (2), Mallia (2), De La Fuente, Bertranou; Cons: Sanchez 5, Urdapilleta)
United States 17 (Tries: Scully (2), Lasike; Cons: MacGinty)
Killing of Qassem Suleimani
Killing of Qassem Suleimani
More on animal trafficking
The specs: 2019 Mercedes-Benz GLE
Price, base / as tested Dh274,000 (estimate)
Engine 3.0-litre inline six-cylinder
Gearbox Nine-speed automatic
Power 245hp @ 4,200rpm
Torque 500Nm @ 1,600rpm
Fuel economy, combined 6.4L / 100km
The Bio
Ram Buxani earned a salary of 125 rupees per month in 1959
Indian currency was then legal tender in the Trucial States.
He received the wages plus food, accommodation, a haircut and cinema ticket twice a month and actuals for shaving and laundry expenses
Buxani followed in his father’s footsteps when he applied for a job overseas
His father Jivat Ram worked in general merchandize store in Gibraltar and the Canary Islands in the early 1930s
Buxani grew the UAE business over several sectors from retail to financial services but is attached to the original textile business
He talks in detail about natural fibres, the texture of cloth, mirrorwork and embroidery
Buxani lives by a simple philosophy – do good to all
More from Neighbourhood Watch:
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
