An EPC (Engineering, Procurement and Construction) contract was recently awarded for the Ta’ziz low-carbon ammonia plant project in Abu Dhabi. The contract was awarded to Tecnimont S.p.A, a company under Maire SpA (Maire). The latter is a provider of civil engineering, technology, and construction services formerly Maire Tecnimont SpA.
The contract award was announced recently during the Make It in the Emirates forum. According to reports, Fertiglobe awarded the contract valued at approximately USD 1.3 billion. As per the contract, Tecnimont S.p.A scope of work entails complete engineering services, equipment and material supply and erection in addition to construction activities.
Who is Fertiglobe in the project development
Fertiglobe is a leading nitrogen fertilizer, ammonia producer and distributor, and the largest producer in the MENA region. It is one of the partner companies developing the Ta’ziz low-carbon ammonia plant project. The company came aboard the project in Q4 2022 through a partnership agreement signed with Abu Dhabi Chemicals Derivatives Company RSC Ltd (“TA’ZIZ”). TA’ZIZ is a joint venture between the Abu Dhabi National Oil Company (ADNOC) and the Abu Dhabi Developmental Holding Company PJSC, (ADQ).
Other partner companies in the Ta’ziz low-carbon ammonia plant project include Mitsui & Co., Ltd. and GS Energy Corporation. Mitsui is one of Japan’s largest general trading companies and a major component of the Mitsui group while GS Energy is a leading energy solution company headquartered in Seoul, the capital of South Korea.
The partnership builds on ADNOC’s deep experience in Carbon Capture, Utilization and Storage (CCUS), Fertiglobe’s world-leading ammonia capabilities, and Mitsui and GS Energy’s leading roles in industrial decarbonization.
Ta’ziz low-carbon ammonia plant project development timeline and expectations
The project implementation is set to begin in the third quarter of 2024. It is expected to reach mechanical completion in 2026 while operations are scheduled to commence in the following year, 2027.
In its first phase of operations, the 1 million tons per annum (mtpa) low-carbon ammonia production facility will reportedly prioritize the domestic production of six chemicals. The chemicals in question are ammonia, methanol, ethylene dichloride, polyvinyl chloride, vinyl chloride monomer and caustic.
With these chemicals, the TA’ZIZ Industrial Chemicals Zone-based facility will set the foundation for manufacturing hundreds of new end-products in the UAE for the first time. Consequently, further diversification and industrialization opportunities will be unlocked in the country.
This project phase is projected to create a multi-billion-dollar investment in the country’s GDP and generate thousands of jobs in the next two decades.
Plans for future expansion
A design process for a future, multi-billion-dollar expansion project that will more than double the Ta’ziz low-carbon ammonia plant production capacity and increase its focus on decarbonization through clean power and carbon capture has already been launched.
Noteworthy, a preliminary life cycle assessment study estimates that the project’s initial phase will produce 50% lower-carbon intensity ammonia compared to conventional ammonia. In the second phase, the plant will reduce carbon intensity by capturing and sequestrating carbon dioxide emissions.
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