The Abu Dhabi-based Fertiglobe said it has signed a collaboration agreement with renewable energy company Masdar and the French energy and services group Engie to jointly develop a green hydrogen facility in the UAE with a 200 megawatts (MW) capacity to help produce green ammonia.

The three companies will study the development, design, financing, procurement, construction, operation, and maintenance of an industrial-scale and globally cost-competitive green hydrogen facility in Al Ruwais, Abu Dhabi, to be installed near Fertiglobe’s ammonia production plants.

The facility is targeted to be operational in 2025, with Fertiglobe the sole long term off-taker. Fertiglobe is a joint venture between Dutch chemical producer OCI and state energy company ADNOC.

“With green hydrogen seen as essential to support decarbonization of industry, food, transport and energy, there is a huge opportunity for green ammonia to deliver green hydrogen all over the world to fuel the clean economy and meet growing demand for renewable sources of clean energy,” said Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe.

Fertiglobe, the largest producer of nitrogen fertilizers and ammonia in the Middle East and North Africa, with a combined production capacity of 6.7 million tons of urea and merchant ammonia, will use the green hydrogen to produce green ammonia.

The agreement was signed on the sidelines of Abu Dhabi Sustainability Week (ADSW) 2022, taking place in the UAE capital.

(Reporting by Brinda Darasha; editing by Daniel Luiz)

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