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
  • Entries now open for MEED Projects Awards 2026

    21 April 2026

    Enter the awards

    The MEED Projects Awards in association with Mashreq 2026 have officially opened for entries, inviting companies, developers, contractors and project teams to submit their projects for the region’s most prestigious construction awards.

    For over 15 years, the MEED Projects Awards have celebrated the Middle East and North Africa’s most ambitious and transformative projects, recognising technical excellence, innovation, sustainability and delivery impact. Past editions have highlighted landmark developments that set new benchmarks for the region’s built environment, including internationally recognised projects such as Burj Khalifa and Louvre Abu Dhabi.

    “The MEED Projects Awards are the gold standard for recognising outstanding achievements in construction across Mena, showcasing the region’s technical and design excellence while bringing the industry together to celebrate and connect over the very best projects of the year,” said Ed James, head of content and research at MEED.

    “As a long-standing partner of the MEED Projects Awards, Mashreq is proud to support a programme that is recognised for its independence, credibility and industry impact. These awards celebrate projects that set benchmarks for excellence and contribute meaningfully to the region’s development,” said Arun Mathur, executive vice-president and global head of contracting finance at Mashreq.

    Winners are chosen through a rigorous, independent judging process, led by a panel of more than 50 senior industry experts representing developers, contractors, engineers and project specialists. The awards celebrate projects across a wide range of sectors, including Building, Transport, Energy, Water, Healthcare, Education, Hospitality, Culture, Industrial, Power, Small Projects and Developments.

    Being shortlisted or winning a MEED Projects Award places a project among the region’s elite, offering regional recognition, global exposure and industry credibility.

    Submissions are now open, with full category details and entry guidelines available on the official entry platform.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16487756/main.gif
    MEED Editorial
  • Nakheel awards $143m Dubai Islands infrastructure deal

    20 April 2026

    Register for MEED’s 14-day trial access 

    Dubai-based developer Nakheel, now part of Dubai Holding, has awarded a AED527m ($143m) contract for the construction of the primary infrastructure and utilities works on Island B at the Dubai Islands development.

    The contract was awarded to local firm Al-Nasr Contracting Company.

    The scope covers the construction of roads, water networks, electrical and telecommunications networks, drainage and sewerage systems, and integration with the district cooling plant network at Island A.

    In October last year, Nakheel awarded Al-Nasr Contracting Company a AED169m ($46m) contract for the construction of the internal roads and utilities for the Bay Villas development at Dubai Islands.

    In August, MEED reported that Nakheel had awarded a AED2.6bn ($708m) contract to Abu Dhabi-based Fibrex Contracting to build the Bay Villas project at Dubai Islands. The contract includes the construction of 636 villas.

    The Dubai Islands development consists of five islands spanning 18.6 square kilometres. It features more than 59 kilometres (km) of waterfront and 20km of beaches, as well as parks, golf courses, promenades and cycling paths.

    The offshore island project gained renewed momentum in 2022, when Nakheel unveiled a new masterplan and rebranded it as Dubai Islands.

    The reclaimed islands were originally part of the Palm Deira project, which was partially completed before being put on hold in 2008.

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

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16476987/main.jpg
    Yasir Iqbal
  • Borouge International appoints chief financial officer

    20 April 2026

    Newly formed chemicals giant Borouge Group International AG (Borouge International) has appointed Patrick Jany as chief financial officer (CFO). He will take office from 1 May, until which time Daniel Turnheim will continue to serve as interim CFO.

    Jany joins Borouge International with more than three decades of international finance leadership across industrial, logistics and chemical businesses. “With 20 years’ CFO experience in publicly listed companies, he brings deep financial expertise and a disciplined approach to capital management,” Borouge International said in a statement.

    Most recently, Jany served as executive vice-president and CFO of Danish shipping company A P Moller-Maersk, where he joined the executive board in 2020 and played a central role in strengthening financial discipline, portfolio management and value creation during a period of major strategic transformation.

    Prior to Maersk, he spent 25 years at Swiss specialty chemicals company Clariant AG, holding a range of senior finance, general management and corporate development roles across Europe, Asia and the Americas, eventually becoming group CFO. Earlier in his career, he held finance leadership roles at Sandoz AG, Clariant’s predecessor.

    Jany holds a Master of Business Administration degree from ESCP Business School.

    “As CFO, he will be part of a strong management team, leading and shaping Borouge International into a global industrial leader with scale, reach and financial discipline, supporting its long-term growth ambitions,” the company said in its statement.

    Chemicals giant

    Abu Dhabi National Oil Company’s (Adnoc Group) overseas investment arm XRG and Austrian energy major OMV completed the creation of Borouge International, a global chemicals giant with the fourth-largest polyolefins production capacity in the world, on 31 March.

    The new entity was formed by the merger of Adnoc Group and OMV’s respective shareholdings in Abu Dhabi chemicals producer Borouge and Austria-based Borealis, as well as the acquisition of Canada-based Nova Chemicals.

    Adnoc and OMV started the transaction to merge their interests in Borouge and Borealis, as well as acquire Nova Chemicals, in March last year. In July, Adnoc announced it would transfer its stake in Borouge International to XRG upon completion of the transaction.

    Borouge International is headquartered and tax-domiciled in Austria, with regional headquarters in Abu Dhabi, UAE. The new company will operate corporate hubs across North America, Europe and Asia, with innovation centres in the UAE, Austria, Canada, Finland and Sweden.

    Financial prospects

    Borouge International will benefit from a superior resilient margin profile and well over $500m in identified earnings before interest, taxes, depreciation, and amortisation (ebitda) run-rate synergies per annum, with 75% expected to be realised within the first three years, XRG said at the time of creation of the entity.

    “The company’s global reach, combined with long-term shareholders and a robust capital structure, will deliver resilience throughout the business cycle and an enhanced ability to drive consistent performance and sustainable value for shareholders,” XRG said in its statement.

    The new company has also secured credit ratings of A (Negative) / Baa1 (Stable) / A- (Stable) ratings from S&P, Moody’s and Fitch, respectively, “confirming its robust financial position and capital structure and ability to access a range of long-term financing options”.

    “XRG and OMV are committed to maintaining investment-grade credit ratings for Borouge International,” they said.

    Additionally, Adnoc and OMV plan to tender an offer to convert Borouge Plc shares to Borouge International AG shares, thereby “creating a simplified structure that will enable value creation from the new global growth platform”.

    The tender offer is expected to take place in 2027, subject to market conditions and approval by the UAE Capital Market Authority, with its timing “aligning with the new company’s future equity raise, to maximise value for all shareholders”.

    Until then, Borouge International will be privately held, and Borouge Plc shares will remain listed on the Abu Dhabi Securities Exchange (ADX). The recently received credit ratings factor in the impact and flexibility on timing of both the future equity raise and the planned acquisition of Borouge 4 at cost by Borouge International.

    Borouge International also recently announced a dividend payment of $1.32bn for 2025, “reflecting the company’s strong operational performance and record sales”.

    The final shareholder-approved dividend payment for 2025 amounts to $658m (8.1 fils per share), bringing the total 2025 dividend to approximately $1.32bn (16.2 fils per share). The dividend will be paid on or around 7 May to all shareholders of record as of 17 April.

    Including this dividend, Borouge Plc will have distributed $4.89bn in dividends since listing, one of the largest payout levels on the ADX over this period.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16476909/main.gif
    Indrajit Sen
  • Saudi firms sign $3bn PPA for Rabigh 2 IPP expansion

    20 April 2026

    Acwa and Saudi Energy (formerly Saudi Electricity Company) have signed a 31-year power purchase agreement (PPA) with Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), for the Rabigh 2 independent power project (IPP) expansion.

    The project involves the development of a combined-cycle gas turbine (CCGT) plant in the Mecca region. It will have a total capacity of 2,313.5MW.

    The contract is valued at SR11.5bn ($3.07bn), the companies said in separate stock exchange filings.

    The carbon-capture-ready power plant will be implemented under a build, own and operate contract, with Acwa and Saudi Energy each owning a 40% stake in the project.

    The scope also includes financing and expansion of a 380kV electrical substation.

    According to regional project tracker MEED Projects, construction works have commenced on the project and a joint venture of Egypt's Elsewedy Electric and China's Sinohydro has been working as the main contractor.

    Rabigh 1 extension

    In January, Saudi Energy announced a spearate energy conversion agreement with SPPC for the purchase of electricity from the Rabigh 1 power plant expansion.

    The contract is valued at SR5.33bn ($1.42bn).

    It covers the development, financing, construction, ownership and operation of the gas-fired power plant, which will have a generation capacity of 1,179MW.

    A joint venture of Elsewedy Electric and Germany’s Siemens Energy is undertaking the engineering, procurement and construction work for the project, which is expected to be completed by the end of 2026.

    US/India-based Synergy Consulting is the financial advisory consultant to Saudi Energy on this project.

    Last October, Saudi Energy signed two further PPAs with SPPC for the PP13 and PP14 CCGT power plants in Riyadh.

    The plants have a total capacity of 3,356MW.

    Under the contracts, valued at SR12.83bn ($3.4bn), SPPC will purchase the power generated by the plants for 21 years.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16476898/main.jpg
    Mark Dowdall
  • Dubai’s RTA opens Hessa Street upgrade

    20 April 2026

    Dubai’s Roads & Transport Authority (RTA) has opened Hessa Street for public traffic after announcing that the construction of the road’s expansion has been completed.

    The scope of the project included expanding Hessa Street from two to four lanes in each direction and developing four intersections with Sheikh Zayed Road, First Al-Khail Street, Al-Asayel Street and Al-Khail Road. 

    The project increases the road’s capacity from 8,000 to 16,000 vehicles an hour in both directions.

    It reduces the travel time from Sheikh Zayed Road to Hessa Street from 15 minutes to just four minutes.

    The Sheikh Zayed Road intersection upgrade included building a two-lane road heading from Sheikh Zayed Road to Hessa Street, eastwards to Emirates Road.

    The upgrade of the First Al-Khail intersection involved increasing the number of lanes from three to four in each direction on the existing Hessa Street Bridge.

    The third improvement covered upgrading the Hessa Street and Al-Asayel Street intersection by increasing the number of lanes from two to four in each direction.

    The Hessa Street and Al-Khail Road intersection upgrade included the construction of a two-lane road to serve traffic travelling northwards to Al-Khail Road in the direction of Sharjah.

    The project mainly serves residential areas, including Al-Sufouh 2, Al-Barsha and Jumeirah Village Circle.

    In February 2024, MEED exclusively reported that the RTA had awarded a AED689m ($187.5m) contract to Turkiye’s Gunal Construction for the first phase of the Hessa Street improvement project.

    The RTA recently started the construction works on the second phase of the project.

    The scope covers upgrade works on three intersections, including the construction of bridges totalling 8.8 kilometres (km), a 480-metre tunnel, and enhancements to access points on surrounding roads to improve entry and exit flow on a 3km stretch between Al-Khail Road and Sheikh Mohammed Bin Zayed Road.

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

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16475593/main.jpg
    Yasir Iqbal