Saudi-listed SABIC Agri-Nutrients has signed an agreement to use Icelandic tech startup Atmonia’s technology for sustainable ammonia production in several Gulf countries.

The agreement covers Saudi Arabia, Bahrain, Kuwait and Oman, Atmonia said in a press statement.

“Today, 1-2 percent of the global anthropogenic carbon emissions are from ammonia production,” said the company’s General Manager T&I Munif-Al Munif.

He added that sustainably produced ammonia represents a promising carbon-free energy carrier (eFuel), with the potential to avoid up to an additional three percent of anthropogenic emissions due to shipping emissions.

Atmonia is developing catalysts for nitrogen electrolysers that will enable the production of ammonia in a single-step process using only water, nitrogen from the air and clean electricity at a low capital cost, CEO Guðbjörg Rist said.

(Writing by D Madhura; Editing by Anoop Menon)