Memorandum of understanding on strategic ammonia collaboration

Polymer manufacturer Covestro has signed a memorandum of understanding with ammonia and urea exporter Fertiglobe and chemical producer TA’ZIZ to explore collaboration across the ammonia and nitric acid value chains. The MoU reflects the parties’ shared interest in assessing both near-term supply solutions and longer-term opportunities supporting the transition toward lower-carbon production pathways. The agreement was signed during the visit of German Chancellor Friedrich Merz to the UAE.

Under the terms of the agreement, Covestro and Fertiglobe intend to explore short-term ammonia supply opportunities from Fertiglobe’s facilities to Covestro’s sites in China and the United States. In parallel, they will assess longer-term supply options to sites in Europe, China and the United States, based on low-carbon ammonia produced using carbon capture technologies, as well as green ammonia from renewable sources, including projects developed by Fertiglobe. Ammonia is a key raw material for Covestro’s production of MDI (diphenylmethane diisocyanate) and TDI (toluene diisocyanate).

“The potential strategic supply arrangement with Fertiglobe could strengthen our access to a critical raw material while supporting the gradual transition towards lower-carbon production pathways,” said Dr. Markus Steilemann, CEO of Covestro. “Reliable low-carbon ammonia supply enhances operational flexibility across our sites and helps manage long-term cost and availability risks. At the same time, the agreement is a first concrete step in translating our partnership with XRG into tangible business impact.”

“We see strong potential in combining our ammonia production portfolio with Covestro’s industrial expertise and global footprint,” said Ahmed El-Hoshy, CEO of Fertiglobe. “The Memorandum of Understanding creates a structured basis to assess concrete projects and opportunities – from supply and infrastructure to downstream applications.”