20-07-2020
Industries Qatar (“Industries Qatar” or the “Company” and its symbol in the Qatar Stock Exchange: IQCD) announced today that Qatar Fertilizer Company (QAFCO), one of its wholly owned subsidiaries, has awarded an engineering, procurement and construction (EPC) contract ( EPC) to create the world's largest blue ammonia production line (Ammonia-7). The contract, valued at approximately $1.06 billion, was awarded to a consortium including ThyssenKrupp and CCC.
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.
The ceremony was attended by His Excellency Eng. Saad Sherida Al Kaabi, Minister of State for Energy Affairs, Chairman and Managing Director of Industries Qatar, Mr. Abdul Rahman Al Suwaidi, Managing Director and CEO of QAFCO, Ms. Martina Merz, CEO of ThyssenKrupp AG, and Dr. Cord Landsmann, CEO of Thyssenkrupp Uhde, and Mr. Osama Al-Jerbi, Area Manager (Qatar) at CCC, as well as a number of executives from Qatar Energy, Industries Qatar, QAFCO, thyssenkrupp and Consolidated Contractors.
Commenting on this occasion, His Excellency Engineer Saad Sherida Al Kaabi said: "The Ammonia-7 project is a pioneering project for the State of Qatar and for this industry in particular. It will be built 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.”
Minister Al-Kaabi added: "This investment represents an important evidence of the tangible steps we are taking to reduce the carbon intensity of our energy products, and is a key pillar in Qatar's energy strategy for sustainability and the transition to low-carbon energy."
Minister Al Kaabi concluded his statement by saying: “I would like to take this opportunity to express my heartfelt thanks to Mr. Abdul Rahman Al Suwaidi, Managing Director and CEO of QAFCO, the Executive Leadership Team and all the company’s employees for their great efforts. I also thank the Executive Management and Qatar Energy’s employees for their efforts. In conclusion, I am honored to extend to His Highness Sheikh Tamim bin Hamad Al Thani, the Emir of the country, may God protect him, with sincere thanks and gratitude for his unlimited support to the energy sector.”
New production line (Ammonia-7)
The project is located in Mesaieed Industrial City and will be operated by QAFCO within its integrated facilities. It should be noted that QAFCO is the largest integrated producer of ammonia and urea in the world from one site, with a current production capacity of about 4 million tons per year of ammonia and 6 million tons per year of urea.
The new production line, which will be financed from QAFCO's financial resources, is highly energy efficient. It is scheduled to be operational by the first quarter of 2026 with a design capacity of 1.2 million tons per year of blue ammonia, making it the largest facility of its kind in the world.
Strategic partnership with Qatar Energy Company for renewable energy solutions to produce blue ammonia
Under the terms of the agreements signed today, Qatar Energy for Renewable Energy Solutions will: (a) establish and manage integrated facilities capable of capturing and storing approximately 1.5 million tons of carbon dioxide annually; (b) Providing more than 35 megawatts of renewable electricity for the production line (Ammonia-7) from its solar photovoltaic power plant, which is currently being constructed in the Mesaieed Industrial City; (c) develop and lead the certification process for the product to be produced by the Ammonia-7 plant as blue ammonia, with the participation of leading industry experts and relevant independent bodies; (D) To be the sole buyer and marketer of the production of blue ammonia that will be produced by the (Ammonia-7) plant.