Fertiglobe, Covestro, and TA’ZIZ sign MoU to explore low-carbon and green ammonia collaboration, supply, and infrastructure opportunities globally.
Fertiglobe, Covestro, and TA’ZIZ have entered into a strategic Memorandum of Understanding (MoU) aimed at exploring collaboration opportunities across the ammonia and nitric acid value chains, underscoring a shared commitment to advancing more sustainable chemical production. The agreement was signed during the official visit of German Chancellor Friedrich Merz to the United Arab Emirates, highlighting the broader importance of international cooperation in industrial transformation and decarbonization.
Covestro, a global leader in high-performance polymer materials, Fertiglobe, the world’s largest seaborne exporter of urea and ammonia, and TA’ZIZ, Abu Dhabi’s rapidly developing world-scale chemicals ecosystem, will jointly assess both immediate and long-term opportunities related to ammonia supply and infrastructure. The collaboration reflects a mutual interest in securing reliable feedstock supply while supporting the gradual shift toward lower-carbon production pathways in line with global sustainability goals.
The MoU follows the completion of XRG’s acquisition of Covestro in December 2025, a milestone that has brought Covestro and Fertiglobe under XRG’s Global Chemicals platform. This integration has created new opportunities for collaboration by combining Fertiglobe’s large-scale ammonia production capabilities with Covestro’s global manufacturing footprint and downstream industrial expertise. With enhanced international reach, the partners aim to unlock synergies across regions and value chains.
In the near term, Fertiglobe and Covestro plan to evaluate ammonia supply options from Fertiglobe’s existing production facilities to Covestro’s manufacturing sites in China and the United States. These discussions are intended to address immediate operational needs and strengthen Covestro’s access to a critical raw material. Over the longer term, the parties will assess supply solutions for facilities in Europe, China, and the United States that are based on low-carbon ammonia produced using carbon capture technologies, as well as green ammonia generated from renewable energy sources. Fertiglobe’s ongoing and planned projects in low-carbon and renewable ammonia production will play a central role in these evaluations.
Ammonia is a vital input for Covestro’s production of methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI), both of which are essential components in the manufacture of polyurethane hard and soft foams used across construction, automotive, appliances, and consumer goods industries. Ensuring a stable and increasingly sustainable ammonia supply is therefore critical to Covestro’s long-term operational resilience.
Covestro CEO Dr. Markus Steilemann emphasized that a potential strategic supply arrangement with Fertiglobe could enhance access to a key raw material while supporting the company’s transition toward lower-carbon manufacturing. He noted that reliable low-carbon ammonia supply would improve flexibility across Covestro’s global sites and help mitigate long-term risks related to cost volatility and availability, while also representing an early tangible outcome of the partnership within XRG.
Fertiglobe CEO Ahmed El-Hoshy highlighted the strong alignment between Fertiglobe’s ammonia portfolio and Covestro’s industrial capabilities. He stated that the MoU establishes a structured framework to evaluate concrete opportunities, spanning supply logistics, infrastructure development, and downstream applications.
TA’ZIZ CEO Mashal Saoud Al Kindi described the agreement as a reflection of the UAE’s growing role in the global chemicals industry. He noted that, together with Covestro and Fertiglobe, TA’ZIZ sees significant potential across the ammonia value chain, supported by its mission to build an integrated ecosystem that enables sustainable growth, attracts international partners, and positions the UAE as a future hub for advanced chemical production.
Beyond supply arrangements, the partners will also explore enabling infrastructure such as storage and transportation solutions, along with broader business opportunities across the global ammonia value chain and within the United Arab Emirates.
