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Nitrogen+Syngas 394 Mar-Apr 2025

19 March 2025

Fertiglobe expects FID on green ammonia projects soon

UNITED ARAB EMIRATES

Fertiglobe expects FID on green ammonia projects soon

In its 4Q 2024 results presentation, Abu Dhabi-based Fertiglobe said that it expects to reach a final investment decision (FID) on two clean hydrogen and ammonia projects in the US and Egypt in 2025. Fertiglobe confirmed that FID on the ADNOC-ExxonMobil low-carbon hydrogen and ammonia project in Baytown, Texas, is expected in 2025, with operations anticipated to begin in 2029. ADNOC’s 35% equity stake in the project will be transferred to Fertiglobe at cost once the project is operational.

An FID for the Egypt Green Hydrogen project is also expected in the first half of 2025, backed by demand and pricing support from H2Global, according to Fertiglobe. The project will feature a 100 MW electrolyser facility, producing renewable hydrogen as feedstock for approximately 74,000 t/a of renewable ammonia at Fertiglobe’s existing ammonia facilities in Ain Sokhna, Egypt. Production is scheduled to commence in 2027.

Meanwhile, construction of a 1.0 million t/a blue ammonia facility in the UAE began in Q3 2024, with operations set to start in 2027. A preliminary life cycle assessment study estimates that Phase 1 of the plant will produce ammonia with 50% lower carbon intensity compared to conventional methods. In its second phase, the facility aims to further reduce carbon emissions through CO₂ capture and sequestration. Fertiglobe currently holds a 30% stake in the project and will consolidate ADNOC’s share at cost upon start-up, increasing its ownership to 54%.

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Safi floods likely to impact phosphate supply from OCP

Flash floods in the Moroccan port city of Safi killed at least 37 people in December and injured many others, with knock on effects also likely to impact exports from phosphate producer OCP. Jorf Lasfar is the phosphate giant's main export hub for phosphate fertilizers and phosphoric acid, while Safi exports smaller volumes of phosphoric acid, TSP and animal feed products. Phosphate rock exports are largely concentrated at the port of Casablanca further north. OCP produces around 420,000 t/a triple superphosphate and 1.63 t/a phosphoric acid at Safi, as well as around 62,000 t/a dicalcium phosphate and 70,000 t/a monocalcium phosphate.

Development funding for green ammonia plant

The African Development Bank has approved a $10 million loan to Hyphen Hydrogen Energy, a Namibian green hydrogen development company, to support a green ammonia project valued at more than $10 billion, and with the potential to position Namibia as a pioneer in the global green hydrogen economy. The loan, sourced from the Sustainable Energy Fund for Africa (SEFA), will support frontend engineering design (FEED) studies for solar and wind generation, battery energy storage systems, and electrolyser capacity and desalination infrastructure, aiming to de-risk the project and attract the financing required for its realisation.