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
  • Consultants submit bids for Saudi Arabia’s GCC rail link

    20 July 2026

     

    Consultants submitted proposals on 14 July for a contract to provide design consultancy services for the Saudi Arabian section of the GCC railway network, which is intended to link all six member states.

    Saudi Arabia Railways (SAR) issued the tender on 7 May, MEED previously reported.

    The tender covers the concept, preliminary and issued for construction design stages. SAR requires the selected consultant to review, update and complete the existing preliminary design.

    The consultants who submitted bids include: 

    • Atkins with Khatib & Alami
    • DeutscheBahn with ARX
    • Egis with Sener
    • Idom with Dal al-Handasah
    • Systra

    Saudi Arabia’s section of the railway will start at Al-Khafji in the Eastern Province, near the border with Kuwait, and end at Al-Batha, on Saudi Arabia’s border with the UAE. The route length in Saudi Arabia will be about 672 kilometres (km).

    The railway will interface with the Kuwait National Rail Road (KNRR) project on the Kuwaiti side. Last year, MEED exclusively reported that the KNRR design contract was awarded to Turkiye’s Proyapi Muhendislik ve Musavirlik Anonim Sirketi.

    The KNRR forms part of the wider GCC rail network. GCC railway projects have gained renewed momentum since the six member states signed the Al-Ula Declaration in January 2021.

    In October last year, Qatar’s cabinet approved a draft agreement paving the way for a railway link between Qatar and Saudi Arabia as part of the GCC railway network.

    GCC railway line

    Under the overall plan, the railway will run from Kuwait, pass through Dammam in Saudi Arabia, reach Bahrain via a planned causeway, and continue from Dammam to Qatar, the UAE and, ultimately, Muscat via Sohar in Oman. The railway is reported to span about 2,186km in total.

    The route length within each member state is as follows: 684km in the UAE, 672km in Saudi Arabia, 306km in Oman, 283km in Qatar, 145km in Kuwait and 36km in Bahrain.

    The railway is designed for passenger trains travelling at 220km/h and freight trains operating at 80-120km/h.

    With high levels of project activity, governments in spending mode and renewed cooperation under the Al-Ula Declaration, the latest efforts to restart the GCC railway project may make more progress than previous attempts. If completed, the railway could prove transformational for a region that is globally connected but still divided by national borders.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17705320/main.gif
    Yasir Iqbal
  • Chinese firm wins Dubai drainage contract

    20 July 2026

    China State Construction Engineering Corporation (CSCEC) has announced it has won a contract to deliver a stormwater drainage pipeline package under Dubai Municipality’s Tasreef programme.

    The contract is for the TF-15-C2 stormwater drainage network project located along Umm Suqeim Road in the Al-Barsha and Al-Quoz areas of Dubai. 

    MEED exclusively revealed in May that the contractor had been selected for the engineering, procurement and construction (EPC) contract. The project is estimated to cost $162m.

    The scope of work includes the construction of about 20 kilometres of new stormwater pipelines, together with associated inspection and intake manholes. The project is located west of the Dubai Canal and will connect the Al-Quoz 3 and Al-Quoz 4 industrial areas with Al-Quoz 1.

    It is being delivered as part of Dubai’s Tasreef strategic plan, which supports the Dubai 2040 Urban Master Plan. Once completed, the new drainage infrastructure is expected to improve the emirate’s stormwater network, increase flood protection and enhance the resilience of Dubai’s infrastructure.

    In February, the municipality confirmed it had awarded contracts for five new projects under phase two of the programme to expand and strengthen Dubai’s stormwater drainage network.

    These include a separate contract awarded to CSCEC for the TF-11-C1 stormwater drainage project in the Dubailand area.

    Also in February, Dubai Municipality invited consultants to qualify for a contract to supervise construction on the TF-15-C2 stormwater drainage projects along with two other projects (TF-13-C1 and TF-16-C1) under the Tasreef programme.

    According to a source, a consultant has yet to be appointed.

    TF-16-C1 involves upgrading and rehabilitating the stormwater system east of the Dubai Canal, while TF-13-C1 involves building a water pipeline stormwater drainage system at Al-Marmoum, Al-Qudra and Al-Yalayis 2 & 3.

    Bids are currently under evaluation for the EPC contracts for both projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17705058/main.jpg
    Mark Dowdall
  • Dubai receives eight bids for Hassyan SWRO pipeline contract

    20 July 2026

    Register for MEED’s 14-day trial access 

    Eight contractors have made offers for a contract to supply, install, test and commission glass-reinforced epoxy (GRE) water transmission pipelines and associated works for the Hassyan seawater reverse osmosis (SWRO) phase two network in Dubai.

    The contract relates to project one of the Hassyan pipeline network expansion being undertaken by state utility Dubai Electricity & Water Authority (Dewa).

    Local firm Binladin Contracting Group submitted the lowest offer of AED335.92m ($91.5m), according to results published by the utility.

    The other bids were:

    • Green Oasis General Contracting (UAE) – AED345.00m ($93.9m)
    • Al-Nasr Contracting (UAE) – AED391.54m ($106.6m)
    • Wade Adams Contracting (UAE) – AED393.80m ($107.2m)
    • RMB Contracting (UAE) – AED437.96m ($119.3m) 
    • Tristar Engineering & Construction (UAE) – AED441.55m ($120.2m)
    • Shapoorji Pallonji Mideast (UAE/India) – AED451.47m ($122.9m)
    • Gulf Petrochemical Services Trading (UAE) – AED495.20m ($134.8m)

    RMB also submitted a conditional discounted offer of AED427.02m ($116.3m). Three companies submitted regret notices, while one offer was rejected after no valid commercial offer was received. 

    In January, Dewa announced that construction of the 180-million-imperial-gallon-a-day phase one of the Hassyan SWRO independent water project was 90% complete.

    Dewa has two other contracts out for tender for GRE water transmission pipeline work related to the Hassyan SWRO phase two network.

    Project two was tendered on 22 January and has a bid submission deadline of 21 July. Project three was tendered on 26 January and has a bid submission deadline of 29 July.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17704940/main.jpg
    Mark Dowdall
  • Abu Dhabi launches E20 highway expansion project

    20 July 2026

    Abu Dhabi’s Department of Municipalities and Transport (DMT) has announced the E20 highway expansion project.

    The scheme covers widening the main carriageway from three to five lanes, constructing more than 10 kilometres (km) of new ramps and loops, and building four bridges.

    Works also include 1.5km of internal roads and the addition of eight signalised junctions across Khalifa City and the Zayed International airport precinct.

    The project includes utility works, comprising 62km of stormwater drainage, 37km of irrigation networks and the installation of 485 streetlights.

    The E20 expansion is one of the major infrastructure schemes being overseen by DMT in Abu Dhabi.

    Separately, DMT is evaluating bids for a design-and-build contract to construct two bridges serving Hudayriyat Island in Abu Dhabi.

    The scope includes a two-lane bridge connecting 32nd Street to Shakhbout Bin Sultan Street, and a single-lane bridge on 8th Street. It also includes upgrades to signalised intersections.

    Shakhbout Bin Sultan Street is a two-way road with three lanes in each direction, providing access to and from Hudayriyat Island.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17704696/main.jpg
    Yasir Iqbal
  • Firms given more time for Mid Island Parkway prequalifications

    20 July 2026

     

    Abu Dhabi’s Modon Infrastructure has extended the deadline to 31 July for firms to submit expressions of interest and prequalification statements for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will be developed as a public-private partnership (PPP).

    The previous deadline was 15 July. MEED understands the prequalification notice was issued in June, following Modon Infrastructure’s invitation in May for firms to register their interest.

    Modon Infrastructure will act as the lead developer and will hold a majority equity stake in the project company. It will award contracts for engineering, procurement and construction; operations and maintenance; and project advisory services.

    Phase two of the MIPP involves the construction of about 11 kilometres (km) of highways, comprising a mix of three-, four- and five-lane sections. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.

    The scope also includes the construction of three interchanges – E20, E10 and Dumbbell – on Al-Sammaliyyah Island.

    The project includes several major structures, including the E20 interchange, which will feature cast-in-place box-girder and void-slab bridges, and the E10 interchange, which will feature cast-in-place box-girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.

    Further elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island; a tunnel between Al-Sammaliyyah Island and Bilrimaid Island; and a cut-and-cover (open) tunnel on Bilrimaid Island. Another tunnel will connect Bilrimaid Island to Um-Yifeenah Island.

    Abu Dhabi awarded three packages for phase one of the MIPP in 2024. The contract for Package 1A was awarded to a joint venture of Turkish contractor Dogus Construction and UAE firm Gulf Contractors. Package 1B was awarded to a joint venture of Yas Projects (Alpha Dhabi Holding) and China Railway International Group. Beijing-headquartered China Harbour Engineering Company and the UAE’s Agility Engineering & Contracting Company won the contract for Package 1C.

    Phase one starts at the existing Saadiyat Interchange, connecting the E12 to the MIPP, and ends at the recently constructed Um-Yifeenah Highway.

    It comprises a dual main road with a total length of 8km, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17704765/main.jpg
    Yasir Iqbal