QatarEnergy Renewable Solutions and Qatar Fertiliser Company (Qafco) have joined forces to build the Ammonia-7 Project, which will have a capacity to produce 1.2 million tonnes per annum (MTPA) of blue ammonia.
The two companies are affiliates of the QatarEnergy group.
The new plant in Mesaieed Industrial City is expected to start production in the first quarter of 2026, and will be operated by Qafco as part of its integrated facilities, QatarEnergy said on Wednesday.
The announcement was made during a ceremony held at QatarEnergy’s Doha headquarters to sign the project agreements, including the engineering, procurement, and construction contract.
Valued at $1 billion, the contract was awarded to a consortium comprising ThyssenKrupp and Consolidated Contractors Company.
Saad Al Kaabi, Qatar's Minister of State for Energy Affairs, and president and chief executive of QatarEnergy, said Ammonia-7 is a milestone project for the kingdom and the industry as a whole.
“It builds on our expertise in installing, operating and maintaining conventional ammonia plants to produce fertilisers,” Mr Al Kaabi said.
“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.”
Blue ammonia is produced when the carbon dioxide (CO2) generated during conventional ammonia production is captured and stored. Blue ammonia, which can be transported using conventional ships, can then be used in power stations to produce low-carbon electricity.
QatarEnergy Renewable Solutions, wholly owned by QatarEnergy, is charged with investing in and marketing of renewable energy and sustainability products.
Qafco is one of the largest integrated single-site producers of ammonia and urea, with a current production capacity of approximately 4MTPA of ammonia and 6MTPA of urea.
As per the agreement, QatarEnergy Renewable Solutions will develop and manage integrated carbon capture and storage (CCS) infrastructure capable of capturing and sequestering about 1.5 million tonnes of CO2 per annum, to cater for the new Ammonia-7 plant.
It will also supply more than 35 megawatts of renewable electricity to the Ammonia-7 factory from its photovoltaic solar power plant in Mesaieed Industrial City, which is currently under construction.
The investment in blue ammonia and the expanded CCS facilities are part of QatarEnergy's sustainability strategy. The strategy includes various initiatives to reduce greenhouse gas emissions. This includes projects such as the further deployment of CCS technology to capture over 11MTPA of CO2 in Qatar by 2035.