meed-logo

line1 line2 line3
SIGN IN / REGISTER

Fertiglobe begins next growth chapter in Abu Dhabi

23 December 2024

 

The majority acquisition of ammonia-based fertilisers producer Fertiglobe by Abu Dhabi National Oil Company (Adnoc Group) could be an inflection point in its growth story, CEO Ahmed El-Hoshy says.

Fertiglobe is already the world’s largest seaborne exporter of urea and ammonia combined, exporting to 53 countries with a collective market share of about 10% of global trade.

Moreover, the company has invested about $500m, along with South Korea’s GS Energy Corporation and Japanese investment firm Mitsui & Company, to build a blue ammonia production facility in the Taziz Industrial Chemicals Zone in Abu Dhabi’s Ruwais, with a production capacity of 1 million tonnes a year (t/y).

“Adnoc is thinking about the future. Not just the immediate future, but medium to long term, in line with the move by Dr Sultan [Al-Jaber; group CEO and managing director of Adnoc] to future-proof the business,” El-Hoshy says. 

“So, when you are looking at a molecule like ammonia – where we’re a global leader, and are selling into some of the key markets – it’s a really good meeting of a big integrated energy company that reaches all over the world in traditional energy sales with an existing incumbent in the ammonia space that is operating in it today,” he says. 

“[The process is] not starting from scratch, but you’re starting from existing operations and expanding from there,” El-Hoshy tells MEED.

Adnoc, in a transaction completed in October, increased its shareholding in Fertiglobe to 86.2% through the acquisition of 50% + 1 share held by Netherlands-based OCI Global, which is backed by Egyptian billionaire Nassef Sawiris. The Abu Dhabi energy giant previously held a 36.2% stake in Fertiglobe.

The remaining 13.8% of Fertiglobe’s shares trade on the Abu Dhabi Securities Exchange, following the company’s stock listing in October 2022.

“I was previously at OCI for 15 years. Growing that business in the US and Europe is what I struggled with a little bit, because OCI was not a household name, like Adnoc is. To be able to go into Japan and South Korea, to the big power generators and utilities, to the governments in Europe, and having this long, far-reaching ability with Adnoc really can accelerate that,” the CEO says.

Fertiglobe is also studying the prospect of investing in another blue ammonia production facility in Abu Dhabi 

Ruwais project

In February 2023, the Fertiglobe-led joint venture awarded Italian firm Tecnimont the main contract for executing the engineering, procurement and construction works on the Taziz blue ammonia project.

El-Hoshy says construction work on the project is under way, with piling works ongoing and some of the civil foundation works to take place over the next six months. He expects the blue ammonia complex to enter operations in 2027. 

“We own 30% of the project currently. Mitsui and GS Energy own 10% stakes each. Adnoc, via Taziz, [Abu Dhabi’s industrial holding company] ADQ and some local shareholders own the remaining 50%. But Fertiglobe has now become the low-carbon ammonia vehicle for Adnoc. “So today we are at 30% in the project, and Adnoc is covering the costs till the project becomes operational. Once the project is commissioned, we will be able to acquire, at cost, almost double that of our stake today. Almost 55% that is,” the CEO says.

“To give you a sense, a project like this in the US would comfortably cost north of $1.2-$1.3bn. So that’s a big advantage on the capex side. Also, from the logistics perspective, being able to get to Asia is a huge advantage, versus in the US through the Panama Canal and all the way across the Pacific,” El-Hoshy says of the capex investment in the project. 

“So, there are a lot of key advantages here, obviously with the support of government and regulatory regime and the availability of renewable electricity here, whether it’s nuclear or solar or otherwise.

“Also, being able to share infrastructure in the broader Ruwais area in Abu Dhabi is another big advantage. We’re going to be using shared infrastructure for storage, for exports and for power utilities,” he says.

Second investment

Fertiglobe is also studying the prospect of investing in another blue ammonia production facility in Abu Dhabi, which could also be located within the Taziz industrial complex.

“Outside the one with GS and Mitsui, there’s another 1 million-t/y blue ammonia project that is pre-final investment decision that we’re doing [the] engineering [study] on. It’s called the Rabdan project,” he reveals.

“Adnoc/Fertiglobe is the sole developer of the Rabdan project. But we are going to bring in partners. The project will be handed over to Fertiglobe at cost and operations. But we are involved right from the start in commercialising and developing it,” the CEO says. 

El-Hoshy adds that Fertiglobe will not wait until the commissioning of the first blue ammonia project to make progress on the Rabdan project, and that work on both projects could proceed in parallel.

“We’ve done quite a bit of engineering work, some of it in-house. We we’re still in the [front-end engineering and design] feed stage now, but we’re yet to award any feed contract,” El-Hoshy says.

“Depending upon what the offtakes [agreements with potential customers] look like, we will be able to decide when to pull the trigger on the second [Rabdan] project,” he adds. 

The two projects in Abu Dhabi could add 2 million t/y of output potential, more than doubling Fertiglobe’s current commercial ammonia capacity of 1.6 million t/y and increasing its total sellable capacity to 8.6 million t/y of net ammonia and urea combined, in addition to other announced global projects.

Blue vs green ammonia

Fertiglobe is today, perhaps, one of the only companies in the world that has investments or stakes in both blue and green hydrogen/ammonia production. The company is also involved in a green ammonia project in Egypt, where it signed a 20-year ammonia offtake agreement with Egypt Green Hydrogen in July this year. Fertiglobe will supply the renewable ammonia to Germany’s Hydrogen Intermediary Network Company (Hint.co) following an offtake agreement between the two companies in August.

The signing of the offtake agreement with Hint.co came after Fertiglobe’s successful bid in the first tender by H2Global Foundation to supply green hydrogen-derived ammonia from Egypt to Europe.

“I'd say there is demand for both forms of ammonia right now. But I think when carbon has a price globally, like the carbon border adjusting mechanism in Europe that starts in 2026, you'll start seeing that blue will get the premium over time as that [EU tax] gets implemented. And blue definitely, in terms affordability, is much cheaper than green. So, I say, definitely blue kind of eats green's lunch,” El-Hoshy says.

“Green has technology risk. By technology risk I mean that, you might build all this and then the electrolysers don't work, or you have degradation, or they are up and down. They're very tough to operate, they're very temperamental and they haven't been proven over long periods of time,” he says. 

“And lastly, the EU carbon border tax just focuses on scope 1 and scope 2 emissions, and not scope 3. Scope 1 and 2 emissions for a blue plant, if done in the right way – where you use renewable electricity instead of regular electricity, and you capture over 99% of the CO2, which we intend to do with our blue projects – can be almost identical for a green molecule as a blue,” El-Hoshy says.

“So you think about me producing a much cheaper blue [molecule] without the technology risk and the headache, and I get the same carbon charge as green … that makes a lot more sense.”

https://image.digitalinsightresearch.in/uploads/NewsArticle/13140434/main.gif
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Oman awards exploration blocks to state upstream firm

    28 September 2026

    Oman’s Ministry of Energy & Minerals (MEMR) has awarded state-owned upstream firm OQ Exploration & Production (OQEP) exploration rights for three hydrocarbon blocks in the sultanate.

    OQEP, which is 75% owned by Omani state energy group OQ, has secured rights for Blocks 36, 43A and 66.

    Under the agreements, OQEP will conduct geological and geophysical surveys, analysis and modelling, and drill exploratory wells at the three blocks, with the aim of developing recoverable reserves.

    Neither MEMR nor OQEP disclosed the blocks’ locations, areas or prospective reserves in their statement.

    OQEP’s portfolio comprises 14 upstream oil and gas exploration and production assets in Oman, covering onshore and offshore operations and assets held under service contracts.

    Formerly known as Oman Oil Company Exploration & Production, OQEP’s flagship assets include Block 60, which contains the Abu Tubul and Bisat oil fields, and Block 48. The company also holds strategic interests in gas-producing Blocks 9, 10 and 61.

    Offshore expansion

    OQEP has been expanding its offshore exploration portfolio. In February, the company acquired a 30% participating interest in offshore Block 18, following MEMR’s award of exploration rights to a joint venture between OQEP subsidiary OQ Exploration & Production Al-Batinah Offshore and PC Oman Ventures, a wholly owned subsidiary of Malaysia’s Petronas.

    Located off Oman’s northeastern coast, Block 18 covers more than 21,000 square kilometres in the Sea of Oman, with water depths ranging from 50 metres to 3,000 metres. No confirmed discoveries have previously been reported in the block.

    ALSO READ: Concession deals boost momentum in Oman mining

    Under the concession agreement, Petronas holds a 70% participating interest and operatorship, while OQEP holds the remaining 30%.

    OQEP has also expanded its producing portfolio through the acquisition of a 35% interest in onshore Block 27 from Japan's Mitsui E&P Middle East in April. The transaction was valued at RO28.8m ($75m).

    Block 27 is operated by US-based Occidental Petroleum, which holds a 65% participating interest under an exploration and production-sharing agreement valid until 2035. 

    OQEP expects its interest in the block to contribute approximately 3,500 barrels of oil equivalent a day (boe/d) in additional net production this year.

    In June, MEMR signed an  with OQEP and state-owned Turkiye Petroller AO (TPAO), granting the companies exclusive exploration, appraisal, development and production rights for offshore Block 80.

    The block covers approximately 5,737 sq km in the Gulf of Oman, near the Strait of Hormuz and off Musandam governorate. It includes the producing Bukha and West Bukha oil and gas fields.

    The agreement stipulates a minimum exploration investment commitment of $90m over an initial eight-year exploration period. The work programme is divided into two phases to evaluate the block’s hydrocarbon potential.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20063097/main2825.jpeg
    Indrajit Sen
  • Saudi Arabia qualifies firms for gas-fired IPPs

    28 September 2026

    Register for MEED’s 14-day trial access 

    Principal buyer Saudi Power Procurement Company (SPPC) has qualified 13 companies to bid for the third round of Saudi Arabia’s combined-cycle gas turbine (CCGT) independent power producer (IPP) programme.

    The projects will comprise new CCGT plants developed on a build-own-operate basis. Each project will be implemented through a special-purpose project company wholly owned by the successful bidder.

    The qualified firms are:

    • Abu Dhabi National Energy Company [Taqa] (UAE)
    • Acwa (Saudi Arabia)
    • Al-Bawani Capital (Saudi Arabia)
    • Al-Jomaih Energy & Water (Saudi Arabia)
    • EDF (France)
    • Etihad Development Company (UAE)
    • Kepco (South Korea)
    • Marafiq (Saudi Arabia)
    • Mitsubishi Power (Japan)
    • Nesma Renewable Energy (Saudi Arabia)
    • PowerChina (China)
    • Saudi Energy (Saudi Arabia)
    • Sumitomo Corporation (Japan)

    Developers submitted statements of qualification for the round on 23 August, as exclusively reported by MEED.

    Some have already begun “the process of forming consortiums to bid” for the project, with up to three or four groups likely to make offers.

    Also in September, MEED exclusively reported that US-based GE Vernova was close to finalising a turbine reservation agreement with SPPC for the plants.

    The new plants will use advanced H-class or J-class gas turbine technology. Each IPP is expected to comprise two or three gas turbine generators, corresponding heat recovery steam generators with duct firing, and one or two steam turbine generators.

    The request for qualifications released by SPPC in July did not specify the number, locations or capacities of the projects, which mark the next stage of its CCGT IPP programme.

    The first round comprises Taiba 1, Taiba 2, Qassim 1 and Qassim 2, with a combined capacity of 7,200MW.

    The second round comprises Rumah 1, Rumah 2, Nairyah 1 and Nairyah 2, also with a combined capacity of 7,200MW.

    Saudi Arabia’s Acwa recently said it had begun initial commercial operations at the Taiba 1 and Qassim 1 CCGT power plants.

    US/India-based Synergy Consulting is the financial adviser for the procurement; Germany’s Fichtner is the technical adviser; and UK-headquartered Eversheds Sutherland is the legal adviser.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20055392/main.jpg
    Mark Dowdall
  • Dewa completes $2.7bn refinancing of Noor Energy 1

    28 September 2026

    Dubai Electricity & Water Authority (Dewa) has completed a $2.7bn refinancing of the 950MW Noor Energy 1 project, the fourth phase of Dubai’s Mohammed Bin Rashid Al-Maktoum Solar Park.

    Noor Energy 1 reached commercial operation in 2024. The project company was established to design, build and operate the plant. It is owned by Dewa (51%), Acwa (25%) and China’s Silk Road Fund (24%).

    The project combines 700MW of concentrated solar power (CSP) with 250MW of photovoltaic (PV) capacity. The CSP component comprises a 600MW parabolic trough facility and a 100MW solar tower.

    It has up to 15 hours of thermal energy storage, allowing it to supply dispatchable electricity beyond daylight hours. Dewa describes Noor Energy 1 as the world’s largest single-site CSP project.

    According to Dewa, the transaction strengthens the project’s financial structure and is expected to generate savings over the operational life of the plant. Saeed Mohammed Al-Tayer, managing director and CEO of Dewa, added that the refinancing demonstrates confidence from international, regional and local financial institutions.

    Abu Dhabi National Future Company (Masdar) is expected to commission the 1,800MW sixth phase of the MBR Solar Park by the end of this year.

    The $1.5bn facility is being implemented by Shuaa Energy 4, a special purpose vehicle jointly owned by Masdar (40%) and Dewa (60%).

    In August, MEED exclusively reported that Masdar is also likely to be awarded the contract to develop the seventh phase of the MBR Solar Park after submitting the lowest bid for the project.

    Phase seven will add 2,000MW from PV solar panels and include a 1,400MW battery energy storage system with a six-hour capacity, providing a total storage capacity of 8,400 megawatt-hours. 

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20055739/main.jpg
    Mark Dowdall
  • BP to drill new well in Egypt as part of $700m campaign

    28 September 2026

    London-headquartered BP has moved the Valaris DS-12 drilling rig to a new position ahead of drilling the planned Ghorab-1 exploration well, according to a statement from Egypt’s Ministry of Petroleum & Mineral Resources.

    The Ghorab-1 exploration well will be drilled in the offshore West Nile Delta (WND) concession and is part of a $700m drilling campaign that started in April this year.

    The rig was moved to the new position after drilling the Fayoum-4 well.

    The Ministry of Petroleum said the well had commenced production and was connected to the national natural gas grid, delivering approximately 80 million cubic feet a day of gas.

    Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi held a meeting with officials from BP last week to discuss progress on the drilling campaign.

    They discussed BP’s strategic direction and priorities, as well as its future business plans, according to the statement from the Ministry of Petroleum.

    Increased interest

    Amid the US and Israel’s ongoing conflict with Iran and the ongoing war between Russia and Ukraine, oil assets in North Africa have become increasingly appealing to international oil companies.

    Disruptions to oil and gas exports through the Strait of Hormuz have severely disrupted a range of countries, including Qatar, the UAE, Saudi Arabia, Iraq and Kuwait.

    London-headquartered Shell has also been pushing ahead with strategic projects in Egypt over recent months.

    In August, BG Delta, a Shell subsidiary, reached the final investment decision for phase 12a of the West Delta Deep Marine (WDDM) development project.

    The project will be implemented in partnership with Malaysia’s Petronas and state-owned Egyptian General Petroleum Corporation (EGPC).

    Shell, Petronas and EGPC formed a joint venture called Burullus Gas Company to operate the WDDM concession.

    Phase 12a includes drilling and completing three deepwater gas wells, with production expected to begin in 2028.

    The wells will be tied into existing subsea infrastructure, helping accelerate development, improve capital efficiency and limit the need for additional facilities.

    In April, Egypt’s Petroleum Marine Services (PMS) was awarded a contract for offshore works for phase 12 of the WDDM field development project.

    The contract awarded to PMS uses the engineering, procurement, installation and construction contract model.

    Under the scope of the contract, PMS will install the required electrical, hydraulic and mechanical connections in deep waters to tie three new gas wells into production as part of phase 12.

    The scope also includes the installation of three final triple tie-in spool bases to complete the connection between the wells.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20050585/main4559.jpg
    Wil Crisp
  • Oil company talks shape Libya licensing round

    28 September 2026

     

    Conversations with London-headquartered international oil companies (IOCs) are playing a key role in shaping plans for Libya’s next licensing round.

    Representatives from Shell and BP travelled to Libya earlier this month as part of a Libyan British Business Council (LBBC) delegation.

    During the trip, the oil companies’ representatives met with officials from Libya’s National Oil Corporation (NOC).

    Peter Millett, chair of the LBBC and a former British ambassador to Libya, told MEED: “NOC is considering its next licensing round and an important part of that process is talking to IOCs like BP and Shell about what kind of terms would make blocks appealing to them.

    “They are asking these oil companies what they can do differently in order to get more investment.”

    Libya’s NOC chairman is Masoud Suleman, who was formally appointed in October last year after serving as acting chairman since January 2025.

    Shortly after he became acting chairman, the NOC announced the results of its most recent licensing round, which was launched in March 2025 and was the country’s first in 17 years.

    A total of five blocks out of 22 available were ultimately awarded in the 2025 licensing round.

    One of the blocks, known as Block S4, was awarded to US-based Chevron, and the production-sharing agreement (PSA) for the block was signed in August.

    Investment drive

    Millett said Libya is seeking large investments from oil companies in order to boost national production.

    “The way that Masoud Suleman is running NOC is impressive and technocratic,” he said. “One of his focuses is making his organisation into a partner that IOCs want to work with.”

    “NOC has the ambition to produce more oil and export more oil, but they need investment in order to do this.

    “They received some money from the central bank for a budget, but it is just a fraction of what they need.

    “There’s a huge requirement to invest in infrastructure, such as processing facilities and pipelines, so they’re looking to outside companies to bring them investment and technology.”

    Amid the US and Israel’s ongoing conflict with Iran and the ongoing war between Russia and Ukraine, oil assets in North Africa have become increasingly appealing to IOCs.

    Disruptions to oil and gas exports through the Strait of Hormuz have severely affected a range of countries, including Qatar, the UAE, Saudi Arabia, Iraq and Kuwait.

    Millett believes Libya’s proximity to consumer markets could help it secure investment to develop its oil and gas sector.

    “Oil companies appear to be becoming increasingly willing to provide this investment in the current climate, because it is relatively easy to transport Libyan crude to customers,” he said.

    “The only strait that you might need to go through is the Strait of Gibraltar, and this is easy compared to the problems that countries like Iraq and Kuwait are having shipping their crude through the Strait of Hormuz at the moment.”

    Security challenges

    While Libya’s location offers significant benefits in terms of ease of exports, operating in the country comes with security challenges.

    Over recent weeks, both the Mellitah oil and gas complex and the Zawiya refinery in the west of the country have been disrupted by the actions of armed groups.

    On top of this, a key pipeline was shut down by militants, temporarily cutting national production by 130,000 barrels a day.

    While Libya has significant potential to expand its oil and gas sector, IOCs will likely watch for signs of deteriorating security before committing to large investment projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20050217/main.jpg
    Wil Crisp