Skip to main content

Qatar to build new plant to produce blue ammonia

Several Gulf states are experimenting with blue ammonia and carbon capture technology, which has energy-related potential but a mixed impact on the environment.

Qatar ammonia
(L to R) The CEO of Uhde Business Unit at thyssenkrupp Dortmund, Cord Landsmann; the CEO of Qatar Fertiliser Company, Abdulrahman al-Suwaidi; Qatar's Minister of State for Energy Affairs and President and CEO of QatarEnergy, Saad Sherida al-Kaabi; CEO of German industrial conglomerate Thyssenkrupp, Martina Merz; and Consolidated Contractors Company area managing Director in Qatar, Oussama el-Jerbi, pose after the signing ceremony of the World-Scale Blue Ammonia Project in the Qatari capital Doha, on Aug. 31, 2022. Qatar will build the world's biggest plant for blue ammonia, a new fuel being touted as a cleaner energy source. The plant would cost $1.1 billion and start production in early 2026. — KARIM JAAFAR/AFP via Getty Images

Qatar’s state-owned energy company announced a new blue ammonia energy project Thursday.

QatarEnergy affiliates agreed to develop the roughly $1 billion Ammonia-7 project. The facility will be able to capture and sequester 1.5 million tons of carbon dioxide (CO2) per year, supply 35 megawatts of renewable electricity via solar panels, and market the product as blue ammonia, the official Qatar News Agency reported. 

What is blue ammonia? Blue ammonia is derived from hydrocarbons such as crude oil. The key criteria is that the carbon dioxide emitted during the ammonia formation is captured and stored, as opposed to being released into the atmosphere, according to the Texas-based tech company KBR. 

Why it matters: Blue ammonia has the potential to be less harmful to the environment due to the carbon capture. However, the process itself typically only removes 90% of the carbon dioxide, according to the International Energy Agency. Blue ammonia also requires a relatively large amount of carbon to produce, according to the US Department of Energy.

SUBSCRIBER EXCLUSIVE

Continue reading this exclusive analysis

Original reporting and analysis unavailable elsewhere. Subscribe to AL-MONITOR to read this story and access everything we publish