Blue ammonia has emerged as one of the alternative fuels for oil-dependent Middle East nations. QatarEnergy, formerly Qatar Petroleum, has announced its plans to construct the world’s largest blue ammonia plant by the first quarter of 2026, with a capacity to produce 1.2 million tonnes per year. 

The cost of the Ammonia-7 project is approximately $1.06 billion, according to QatarEnergy subsidiary, Industries Qatar. 

During a news conference, Chief Executive and Minister for Energy Saad al-Kaabi said, “We see an increasing interest in using ammonia as fuel, driven by the need to reduce CO2 emissions in the energy ecosystem.” 

Blue ammonia is made from nitrogen and “blue” hydrogen derived from natural gas feedstocks, with the carbon dioxide by-product from hydrogen production captured and stored. Ammonia can be used as a low-carbon fuel for transportation, power generation, steel, cement, and fertilizer production. 

While conventional ammonia production emits CO2 if made with fossil fuel, any carbon dioxide generated during the production of blue ammonia is captured and stored.

The facility will capture and sequester 1.5 million tonnes of carbon dioxide a year through the manufacturing process, the minister added.

In June, state-owned oil producer Saudi Aramco announced it would cut carbon emissions and ramp up production of blue ammonia in the next decade as the company strives to hit its energy transition goals.

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