Qatar Energy Company for Renewable Solutions and Qatar Chemical Fertilizer Company (QAFCO) - two subsidiaries of Qatar Energy - signed today, Wednesday, agreements to build the Ammonia-7 project worth $1.1 billion.
The project is the first and largest blue ammonia project in the world with a production capacity of 1.2 million tons per year, and it will enter production in the first quarter of 2026.
The announcement came during a ceremony held today at Qatar Energy's headquarters in Doha to sign the project agreements, including the engineering, procurement and construction contract awarded to a consortium of ThyssenKrupp and CCC. .
The ceremony was attended by Saad bin Sherida Al Kaabi, Minister of State for Energy Affairs and the Managing Director and CEO of Qatar Energy.
Al-Kaabi said during the press conference, "The ammonia project is a pioneering project for the State of Qatar and for this industry in particular, and it will be established based on our expertise in installing, operating and maintaining traditional ammonia plants to produce fertilizers."
"We are also building on our unique position in the field of renewable energy sources and carbon capture and sequestration, as well as our logistics capabilities and ideal advantages to provide the world with different, low carbon products and fuels," he added.
Al Kaabi added, "This investment represents important evidence of the tangible steps we are taking to reduce the carbon intensity of our energy products, and forms a key pillar of Qatar's energy strategy for sustainability and the transition to low-carbon energy."
Blue ammonia is produced when the carbon dioxide produced during conventional ammonia production is captured and stored. The blue ammonia, which can then be transported using conventional ships, can then be used in power plants to produce low-carbon electricity.
Qatar Energy Company for Renewable Solutions is a wholly owned company of Qatar Energy and is tasked with investing in renewable energy products and solutions (Al Jazeera)
Under the terms of the agreements signed today, Qatar Energy Company for Renewable Solutions will develop and manage integrated carbon capture and storage facilities capable of capturing and storing about 1.5 million tons of carbon dioxide annually, and providing more than 35 megawatts of electricity to the plant from solar energy from the solar power plant. which is currently being established in Mesaieed Industrial City.
The certification process for the product to be produced by the Ammonia Plant-7 as Blue Ammonia will be developed and led with the participation of leading industry experts and relevant independent bodies, and Qatar Power Company will be the sole buyer and marketer of blue ammonia production from the Ammonia Plant.
The investment in blue ammonia and in expanded carbon dioxide capture and storage facilities is part of the steps that Qatar Energy is taking to implement its sustainability strategy, which emphasizes its commitment as a major energy producer to the responsible production of clean and affordable energy to facilitate the transition to low carbon energy.
The strategy identifies multiple initiatives to reduce greenhouse gas emissions, including pilot projects to expand the use of carbon capture and storage technology to capture more than 11 million tons per year of carbon dioxide in Qatar by 2035.
In a separate context, Al-Kaabi expected Qatar Energy to achieve good growth in its profits during the current year as a result of the rise in prices in international markets.
Qatar Energy Company for Renewable Solutions is a wholly owned subsidiary of Qatar Energy and is mandated to invest in and market renewable energy and sustainability products and solutions within the State of Qatar and around the world.
QAFCO is also the largest integrated producer of ammonia and urea from a single site in the world, with a production capacity of about 4 million tons per year of ammonia and 6 million tons per year of urea.