Fertiglobe and AD Ports unite on ammonia storing and shipping

September 18, 2023, by Aida Čučuk

Fertiglobe, a strategic partnership between UAE’s ADNOC and Dutch OCI Global, has signed a non-binding memorandum of understanding (MoU) with UAE’s AD Ports Group to explore logistics and supply chain opportunities for storing and shipping urea and ammonia at ports in Egypt and the UAE.

Illustration only; Archive; Courtesy of NYK

According to Fertiglobe, the two companies will explore opportunities to leverage AD Ports Group’s cargo handling and storage infrastructure as Fertiglobe strengthens its urea and ammonia storage and shipping capabilities, reduces its greenhouse gas (GHG) footprint, enhances operational efficiency and further automates its logistical activities.

Fertiglobe noted that by capitalizing on AD Ports Group’s supply chain capabilities and sustainable modes of inland transportation, it seeks to further optimize its logistics’ cost structure, a key component of its recently introduced cost optimization program, targeting $50 million in recurring annualized cost savings by the end of 2024.

Fertiglobe further said that the two companies will also explore potential collaboration opportunities in other geographies, as well as the development of supply chain solutions for green ammonia, a hydrogen carrier, with Fertiglobe’s existing operations strategically located near key shipping routes.

Ahmed El-Hoshy, CEO of Fertiglobe, commented: “Today, our strategically located production facilities benefit from direct access to international ports and distribution hubs, allowing us to easily access major end markets and regions with high demand. This MoU will enable us to expand our partnership beyond Egypt and the UAE as well as to the shipping and storage of green ammonia, in line with our commitment to deliver more sustainable products to the world.”

Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, stated: “We anticipate that this will become a remarkable step towards a greener, more efficient future… We are pleased that, by leveraging our integrated portfolio and extensive infrastructure and supply chain expertise, Fertiglobe can strengthen its urea and ammonia storage and shipping capabilities.”