Mitsui And JBIC Partner For Clean Ammonia Production In UAE

The Japan Bank for International Cooperation (JBIC) signed a USD 12 million loan agreement with MITSUI & CO., LTD. to support ammonia production through its subsidiary, Ammonia Project Company RSC LTD, in the United Arab Emirates (UAE). This funding, co-financed with Sumitomo Mitsui Banking Corporation, totals approximately USD 27 million and aims to bolster MITSUI’s investment in ammonia production and sales operations in the UAE.

The initiative aligns with Japan’s strategic goal of achieving carbon neutrality by promoting hydrogen and its derivatives as vital energy sources, free from CO2 emissions during combustion. MITSUI plans to utilize the ammonia produced in the UAE as both a fuel source and a raw material for chemical and fertilizer production in Japan. This initiative not only supports MITSUI’s overseas business expansion but also contributes to establishing a robust supply chain for hydrogen derivatives, essential for Japan’s long-term energy security and sustainability goals.

Under Japan’s Basic Hydrogen Strategy and the Sixth Energy Basic Plan, JBIC plays a pivotal role in mobilizing financial resources to develop resilient hydrogen supply chains globally. By facilitating investments in clean energy projects abroad, JBIC aims to secure stable energy resources and accelerate the transition towards a decarbonized society.

In addition to the loan agreement, MITSUI, alongside partners including TA’ZIZ, Fertiglobe, and GS Energy Corporation, is set to commence construction of an advanced ammonia production facility in Al Ruwais, UAE. Expected to start operations in 2027, the facility aims to produce 1 million tons annually of low-CO2 emission ammonia, with plans to introduce carbon capture and storage technology by 2030. Mitsui’s involvement in this project underscores its commitment to global decarbonization efforts, aiming to supply clean ammonia to Japan and other Asian markets for various industrial applications.

Drawing on its extensive experience in the ammonia sector and strategic partnerships, Mitsui is poised to establish a sustainable clean ammonia supply chain, addressing the decarbonization needs of diverse regions and industries. As outlined in its Medium-term Management Plan 2026, Mitsui prioritizes the Global Energy Transition as a strategic initiative, positioning clean ammonia as a pivotal component in achieving a carbon-neutral future.

This collaborative effort between MITSUI and JBIC represents a significant step towards fostering clean energy solutions and enhancing global energy security amidst the evolving challenges of climate change and sustainable development.