QatarEnergy breaks ground on $1.2 billion ammonia project

Qatar’s state-owned energy giant QatarEnergy has laid the foundation stone for the 1.2 million tons per annum (mtpa) blue ammonia facility, said to be the largest of its kind in the world, marking a milestone in its strategy to expand into the cleaner energy sector.

QatarEnergy held the groundbreaking ceremony for the blue ammonia project in Mesaieed Industrial City on November 26, 2024, under the patronage of HH Sheikh Tamim bin Hamad Al Thani, the Amir of the State of Qatar, and HH Sheikh Abdullah bin Hamad Al Thani, the Deputy Amir.

Involving an investment of about QAR 4.4 billion (around $1.2 billion), the plant will be built in Mesaieed Industrial City, which offers a strategic location, integrated infrastructure, ideal capabilities, and a port that is considered one of the largest petrochemical export facilities in the Middle East. 

The facility will consist of an ammonia production unit with a capacity of 1.2 mtpa and an additional unit for CO2 injection and storage, with a capacity of 1.5 mtpa. QatarEnergy plans to provide the new plant with more than 35 MW of electricity from the solar power plant currently being built in Mesaieed Industrial City.

The plant is expected to start production in the second quarter of 2026. The consortium implementing the project consists of ThyssenKrupp and CCC.

Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, President and CEO of QatarEnergy, said: “In building this facility, we will rely on our own capabilities and expertise in the construction and operation of ammonia plants used for the production of fertilizers. This will be carried out in cooperation between QatarEnergy and Qatar Fertiliser Company – QAFCO.

“The blue ammonia plant joins a list of QatarEnergy’s large and ambitious expansion projects in Qatar and around the world covering LNG, oil and gas exploration and production, petrochemicals, fertilizers, solar power, and more.”