Doha: Industries Qatar (IQ) on Tuesday announced the award of a $1.06bn engineering, procurement and construction (EPC) contract for the construction of the world’s largest Blue Ammonia train (Ammonia-7) by Qatar Fertilizer Company (QAFCO), a wholly owned subsidiary of IQ.
The EPC contract for new the Ammonia-7 train was awarded to a consortium of ThyssenKrupp and Consolidated Contractors Company (CCC).
The announcement was made during a ceremony held at QatarEnergy’s headquarters in Doha to sign the project agreements, including the EPC contract.
The ceremony was attended by HE Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, Chairman and Managing Director of Industries Qatar, Abdulrahman Al-Suwaidi, the Managing Director & CEO of QAFCO and Martina Merz, CEO Thyssenkrupp AG, Dr. Cord Landsmann, CEO Thyssenkrupp Uhde, Oussama El Jerbi, the CCC Area Managing Director (Qatar), as well as, senior executives of QatarEnergy, IQ, QAFCO, ThyssenKrupp and CCC.
Speaking on the occasion, HE Al Kaabi said: “Ammonia-7 is a landmark project for Qatar and for the industry as a whole. It builds on our expertise in installing, operating, and maintaining conventional ammonia plants to produce fertilizers. We are also building on our unique position in the renewables and carbon capture and sequestration space, as well as on our ideal logistical capabilities and advantages to supply differentiated, low carbon products and fuels to the world.”
“Our investment in this project speaks to the concrete steps we are taking to lower the carbon intensity of our energy products and is a key pillar of QatarEnergy’s sustainability and energy transition strategy,” he added.
Al-Kaabi thanked the QAFCO executive leadership team, led by its MD/CEO, and the employees for their hard work and dedication, and the QatarEnergy team for their great contributions to the development of Qatar’s energy sector.
"In conclusion, I would like to express our deep gratitude to His Highness the Amir Sheikh Tamim bin Hamad Al Thani for his wise leadership and for his unwavering support and guidance to the energy sector,” he said.
The project will be located in Mesaieed Industrial City (MIC) and will be operated by QAFCO as part of its integrated facilities. QAFCO is the world’s largest integrated single-site producer of ammonia and urea, with a current production capacity of approximately 4 MTPA of ammonia and 6 MTPA of urea.
The new train will be more energy-efficient and fully funded by QAFCO’s internal sources of funds. The new train is intended to be operational by 1st quarter of 2026 and will have a designed capacity upto 1.2 million tons per annum (MTPA) of Blue Ammonia, making it the world’s largest facility.
Strategic partnership with QatarEnergy Renewable Solutions (QERS) for expanding into Blue Ammonia
Pursuant to the agreements signed today, QERS will develop and manage integrated Carbon capture and storage (CCS) facilities capable of capturing and sequestering about 1.5 million tons of CO2 per annum.
It will also supply more than 35 MW of renewable electricity to the Ammonia-7 train from its Photovoltaic (PV) Solar Power Plant in MIC, which is currently under construction; as well as develop and lead the process for certifying the product produced by the Ammonia-7 facility as Blue Ammonia, with the involvement of leading industry experts and relevant independent bodies.
Lastly, it will be the sole off-taker and marketer of all Blue Ammonia produced by Ammonia-7.
Blue Ammonia is produced when the CO2 generated during conventional Ammonia production is captured and stored. Blue Ammonia, which can be transported using conventional ships, can then be used in power stations to produce low-carbon electricity.
