Production of ammonia is lucrative with market size of around $48.65 billion in 2016, according to Grand View Research. The facility, which has moved to the design phase, will be developed at the new TA’ZIZ industrial ecosystem and chemicals hub in Ruwais. Photo shows fertilizer laboratory. Courtesy Adnoc
Production of ammonia is lucrative with market size of around $48.65 billion in 2016, according to Grand View Research. The facility, which has moved to the design phase, will be developed at the new TA’ZIZ industrial ecosystem and chemicals hub in Ruwais. Photo shows fertilizer laboratory. Courtesy Adnoc
Production of ammonia is lucrative with market size of around $48.65 billion in 2016, according to Grand View Research. The facility, which has moved to the design phase, will be developed at the new TA’ZIZ industrial ecosystem and chemicals hub in Ruwais. Photo shows fertilizer laboratory. Courtesy Adnoc
Production of ammonia is lucrative with market size of around $48.65 billion in 2016, according to Grand View Research. The facility, which has moved to the design phase, will be developed at the new

What is blue ammonia?


Jennifer Gnana
  • English
  • Arabic

Abu Dhabi National Oil Company announced the development of a 1,000-kilotonne blue ammonia facility at its downstream industrial hub of Ruwais on Monday.

But what is blue ammonia and what role does it have in the UAE's rapidly-evolving hydrogen strategy?

What is ammonia?

Ammonia is a chemical compound that is important to the global fertiliser industry. It consists of nitrogen and hydrogen and is formed with one molecule of the former and three of the latter.

Apart from fertilisers, ammonia has a variety of other uses - in pharmaceuticals, textiles, cleaning products and for wastewater treatment. The production of ammonia is a lucrative market valued at $72.8 billion last year, according to the Ammonia Market 2021 report.

How is ammonia manufactured?

Ammonia is an inorganic compound, which is a term for chemicals that do not contain both carbon and hydrogen. It is produced through a chemical reaction between hydrogen and nitrogen at high pressure and temperatures of 450 degrees Celsius. The process is highly energy-intensive - ammonia production accounts for up to 2 per cent of energy consumption and 3 per cent of carbon emissions worldwide. The process also uses up to 5 per cent of global gas consumption.

What is blue ammonia?

Blue ammonia is a low-carbon method of producing the chemical compound, using steam methane reformation. Hydrogen is first derived as a byproduct of carbon dioxide, which has been captured and stored. It is then combined with nitrogen to produce ammonia.

Green ammonia can also be produced through electrolysis powered by renewable energy. The decarbonisation of ammonia production is an integral part of the global transition to net-zero emissions by 2050.

What role does it play in the hydrogen economy?

With the surge of interest in hydrogen as a fuel, ammonia has become an easily transportable way to store it. Hydrogen, a clean-burning fuel with no carbon emissions, can be obtained by reconverting ammonia into the gas to use in applications such as fuel cells for cars.  As investment pours into developing blue and green hydrogen in the Gulf countries, ammonia produced in this manner could become a viable fuel source for the future.

Blue ammonia is seen as a useful fuel for power industrial heating, heavy road transport and shipping.

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Four reasons global stock markets are falling right now

There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:

1. Rising US interest rates

The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.

Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”

At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.

2. Stronger dollar

High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.” 

3. Global trade war

Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”

4. Eurozone uncertainty

Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.

Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”

The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”

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Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.

Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines: 

Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.

Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.

Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.

Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.

Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.

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