Aramco Announces World’s First Blue Ammonia Shipment

The logo of Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia (File photo: Reuters)
The logo of Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia (File photo: Reuters)
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Aramco Announces World’s First Blue Ammonia Shipment

The logo of Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia (File photo: Reuters)
The logo of Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia (File photo: Reuters)

Saudi Aramco announced it will be producing the first shipment of blue ammonia in partnership with the Institute of Energy Economics, Japan (IEEJ), and SABIC.

Aramco have successfully demonstrated the production and shipment of blue ammonia to Japan with support from the Japanese Ministry of Economy, Trade and Industry.

This step highlights the pathways within the concept of a global circular carbon economy, a framework in which CO2 emissions are reduced, removed, recycled and reused, rather than being released into the atmosphere.

Saudi Arabia has universally adopted the concept of the carbon economy. Last week, Riyadh chaired the 2020 Clean Energy Ministerial and Mission Innovation Ministerial virtual meetings to promote the carbon economy and support sustainable energy.

Through its current presidency of the G20, Saudi Arabia is pushing towards expanding the circular carbon economy, as a framework for promoting access to sustainable and reliable energy at a lower cost.

Riyadh reiterated the need to encourage the use of energy technologies based on research, development and innovation that enhance such an economy.

Aramco indicated that 40 tons of high-grade blue ammonia has already been dispatched to Japan for use in zero-carbon power generation.

This shows the role hydrogen will play in the global energy system.

Ammonia, a compound consisting of three-parts hydrogen and one-part nitrogen, can contribute to addressing the challenge of meeting the world’s growing energy demands in a reliable, affordable and sustainable manner.

It contains approximately 18 percent hydrogen by weight and is already a widely traded chemical around the world, and has the potential to make a significant contribution to an affordable and reliable low-carbon energy future.

SABIC and Mitsubishi Corporation, which is represented on the IEEJ study team involved in the project, are overseeing the transport logistics in partnership with JGC Corporation, Mitsubishi Heavy Industries Engineering, Mitsubishi Shipbuilding and UBE Industries.

The Saudi-Japan blue ammonia supply network includes the conversion of hydrocarbons to hydrogen and then to ammonia, as well as the capture of associated CO2 emissions.

The company overcame challenges associated with shipping blue ammonia to Japan by capturing 30 tons of CO2 during the process designated for use in methanol production at SABIC’s Ibn-Sina facility and another 20 tons used for Enhanced Oil Recovery at Aramco’s Uthmaniyah field.

Speaking on the occasion, Aramco’s Chief Technology Officer, Ahmad al-Khowaiter, expects the use of hydrogen to grow in the global energy system.

He indicated that the world’s first shipment is an exciting opportunity for Aramco to showcase the potential of hydrocarbons as a reliable and affordable source of low-carbon hydrogen and ammonia.

This milestone also highlights a successful transnational, multi-industry partnership between Saudi Arabia and Japan, according to Khowaiter.

He added that Aramco continues to work “with various partners to find solutions through the deployment of breakthrough technologies to produce low-carbon energy and address the global climate challenge.”

For his part, IEEJ Chairman Toyoda Masakazu asserted that blue ammonia is critical to Japan’s zero carbon emission ambitions to sustain the balance between the environment and the economy.

He indicated that about 10 percent of power in Japan can be generated by 30 million tons of blue ammonia.

The Vice President of Energy Efficiency and Carbon Management at SABIC, Fahad al-Sherehy, announced that SABIC can economically leverage the existing infrastructure for hydrogen and ammonia production with CO2 capture.

“Our experience in the full supply chain along with integrated petrochemicals facilities will play an important role in providing blue ammonia to the world.”

The Institute of Energy Economics, Japan was established in 1966 and became a certified incorporated foundation by the Ministry of International Trade and Industry in September that year.

The aim of its establishment was to carry out research activities specialized in energy from the viewpoint of the national economy in a bid to contribute to the development of Japanese energy-supplying and energy-consuming industries and help improve people’s life.

It objectively analyzes energy problems and provides basic data, information and reports necessary for the formulation of policies.

With the diversification of social needs, IEEJ expanded its activities to include topics such as environmental problems and international cooperation closely related to energy.

Saudi Aramco aims to become an integrated global leader in the field of energy and chemicals, as it is currently producing one barrel for every eight barrels of global oil supply.

Aramco continues to develop new energy technologies, focusing on the reliability and sustainability of its resources which help enhance stability and long-term growth around the world.



Where Things Stand in the US-China Trade War

FILE PHOTO: A person works at the Amazon warehouse, busy on Prime Day, in Melville, New York, US, July 11, 2023. REUTERS/Soren Larson/File Photo
FILE PHOTO: A person works at the Amazon warehouse, busy on Prime Day, in Melville, New York, US, July 11, 2023. REUTERS/Soren Larson/File Photo
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Where Things Stand in the US-China Trade War

FILE PHOTO: A person works at the Amazon warehouse, busy on Prime Day, in Melville, New York, US, July 11, 2023. REUTERS/Soren Larson/File Photo
FILE PHOTO: A person works at the Amazon warehouse, busy on Prime Day, in Melville, New York, US, July 11, 2023. REUTERS/Soren Larson/File Photo

US and Chinese officials meet this weekend in Geneva for their first formal talks aimed at resolving a grueling tit-for-tat tariff war that threatens hundreds of billions in trade and roiled global markets and supply chains.

AFP looks at how the trade row between the world's two economic superpowers is playing out:

What steps have the two sides taken so far?

The United States has raised tariffs on Chinese imports to 145 percent, with cumulative duties on some goods reaching a staggering 245 percent.

As well as the blanket levies, China has also been hit with sector-specific tariffs on steel, aluminium and car imports.

Sales of Chinese goods to the United States last year totaled more than $500 billion -- 16.4 percent of the country's exports, according to Beijing's customs data.

Beijing has vowed to fight the measures "to the end" and has unveiled reciprocal tariffs of up to 125 percent on imports of American goods, which totaled $143.5 billion last year, according to Washington.

China has filed complaints with the World Trade Organization (WTO), citing "bullying" tactics by the Trump administration.

And it has gone after US companies, scrapping orders for Boeing planes, probing Google for "anti-monopoly" violations and adding fashion group PVH Corp. -- which owns Tommy Hilfiger and Calvin Klein -- and biotech giant Illumina to a list of "unreliable entities".

Beijing has also restricted exports of rare earth elements -- critical for making a wide range of products including semiconductors, medical technology and consumer electronics.

- What's been the impact? -

Beijing has long drawn Trump's ire with a trade surplus with the United States that reached $295.4 billion last year, according to the US Commerce Department's Bureau of Economic Analysis.

Chinese leaders have been reluctant to disrupt that status quo.

But an intensified trade war could mean China cannot peg its hopes for strong economic growth this year on exports, which hit a record high in 2024.

US duties further threaten to harm China's fragile post-Covid economic recovery as it struggles with a debt crisis in the property sector and persistently low consumption.

The tariff war is already having an impact in the United States, with uncertainty triggering a manufacturing slump last month and officials blaming it for an unexpected economic contraction during the first three months of the year.

"Both countries have surely found out that it is not so easy to fully decouple," Teeuwe Mevissen, senior China economist at Rabobank, told AFP.

"Both the US and China lose economically with the current trade war," he said, adding that even in the case that one side gains the upper hand "it is still worse off economically than before the trade war started".

The head of the WTO warned in April that the US-China standoff could cut trade in goods between the two countries by 80 percent.

Beijing announced a raft of interest rate cuts on Wednesday aimed at boosting consumption -- a possible sign that it is starting to feel the pinch.

Analysts expect the levies to take a significant chunk out of China's gross domestic product, which Beijing's leadership have targeted to grow five percent this year.

Likely to be hit hardest are China's top exports to the United States -- this includes everything from electronics and machinery to textiles and clothing.

And because of the crucial role Chinese goods play in supplying US firms, the tariffs may also hurt American manufacturers and consumers, analysts have warned.

Is a breakthrough possible?

Both sides insist that economic pressures have driven the other to seek negotiations.

But while markets have welcomed the talks, a major breakthrough in Geneva seems unlikely.

China has insisted its position that the United States must lift tariffs first remains "unchanged" and vowed to defend its interests.

US Treasury Secretary Scott Bessent has said the meetings will focus on "de-escalation" -- and not a "big trade deal".

But analysts do expect some form of tariff reduction to be announced following Saturday's ice-breaking exercise.

"One possible outcome of the Switzerland talks is an agreement to pause most, if not all, of the tariffs that have been imposed this year while negotiations take place," Bonnie Glaser, managing director of the German Marshall Fund's Indo-Pacific program, told AFP.

Lizzi Lee from the Asia Society said she expected "a tentative, symbolic gesture -- designed to lower temperatures, not resolve core disputes".

"Stabilization and guardrails are the most likely outcomes."