QatarEnergy’s affiliates QatarEnergy Renewable Solutions and Qatar Fertiliser Company (QAFCO) have signed agreements to build a blue ammonia plant in the country.

The facility, Ammonia-7 project, will be the largest blue ammonia facility in the world with a production capacity of 1.2 million tonnes per annum (MTPA).

Blue ammonia is produced by capturing carbon dioxide generated during conventional ammonia production. It can be used in power stations as a fuel to produce low-carbon electricity.

A consortium of ThyssenKrupp and Consolidated Contractors Company (CCC) has secured a nearly $1bn engineering, procurement, and construction (EPC) contract to deliver the project.

Ammonia-7 project will be located in Mesaieed Industrial City (MIC).

Qatar Minister of State for Energy Affairs and QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “Ammonia-7 is a landmark project for Qatar and for the industry as a whole. It builds on our expertise in installing, operating, and maintaining conventional ammonia plants to produce fertilisers.

“We are also building on our unique position in the renewables and carbon capture and sequestration space, as well as on our ideal logistical capabilities and advantages to supply differentiated, low carbon products and fuels to the world.

“Our investment in this project speaks to the concrete steps we are taking to lower the carbon intensity of our energy products, and is a key pillar of QatarEnergy’s sustainability and energy transition strategy.”

As agreed, QAFCO will operate the plant as part of its integrated facilities.

On the other hand, QatarEnergy Renewable Solutions will develop and manage integrated CCS facilities that will capture and sequester around 1.5 million tonnes of carbon dioxide per annum for the Ammonia-7 plant.

Additionally, QatarEnergy Renewable Solutions will deliver more than 35MW of renewable electricity from its PV Solar Power Plant in MIC to the plant as well as develop and lead the process to certify the final product.

The company will also be the sole off-taker and marketer of all blue ammonia produced by the facility.