Blue Ammonia Increasingly Getting Traction in Global Markets
- 06-Aug-2021 3:00 PM
- Journalist: Motoki Sasaki
Affirmative action towards the climate and development in that direction was never that important as it is today. In lieu of that, Blue Ammonia is gaining attention worldwide. Blue Ammonia because of its low carbon nature and viable economics is experiencing demand rise as countries are moving towards a low carbon future.
In order to meet the rising demand, various supply chains are being developed in Asia to support the Blue Ammonia market. Japan in particular is ahead with already developed supply chain. Japan’s Itochu will be receiving its first Blue Ammonia imports for use in the production of fertilizers from Abu Dhabi National Oil Company (ADNOC) and Fertiglobe. The Ammonia sold will be produced by Fertiglobe which is a joint venture between OCI and ADNOC at its Fertil plant in the Ruwais Industrial Complex in Abu Dhabi. The shipments will be sold at an attractive premium to Grey Ammonia which is an indicator of viable economics for Blue Ammonia as an upcoming low carbon energy source.
Another major investment in this sphere was heard from Europe recently where the port of Rotterdam announced forward with its decision to become a leader in the already emerging Hydrogen sector. The port is exploring the idea of net-zero carbon emission capabilities of Blue Ammonia which can be revolutionary step in decarbonizing the shipping industry. It is looking to take lead in creating beneficial supply chains for Hydrogen and Ammonia from sources where the cost of producing Ammonia is lower. In this regard the port of Rotterdam will be working in collaboration with a Norwegian Start-up, Horisont Energi, to explore a partnership to ship Blue Ammonia. Horisont is looking forward towards this move and will be developing its production plant near Hammerfest in Norway. The plant is projected to have a production capacity of 600 tons per day of Blue Hydrogen and 3000 tons per day of Blue Ammonia.
Russia has also shown interest in Blue Ammonia as its Gas Major Obsky Gas Chemistry Complex (OGCC), a subsidiary of Novatek, is exploring prospects for potential Blue Ammonia and Hydrogen reserves.