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.



Saudi Arabia: Global Mining Needs $6 Trillion in Investments to Meet Demand

Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef speaks at the start of the event. (Asharq Al-Awsat)
Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef speaks at the start of the event. (Asharq Al-Awsat)
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Saudi Arabia: Global Mining Needs $6 Trillion in Investments to Meet Demand

Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef speaks at the start of the event. (Asharq Al-Awsat)
Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef speaks at the start of the event. (Asharq Al-Awsat)

The global mining industry requires $6 trillion in investments over the next decade to meet rising demand, presenting a major challenge for the sector. This figure was revealed by Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef during an international meeting of mining ministers.

The announcement underscores the mining sector’s appetite for investments, coinciding with Saudi Arabia’s increasing focus on making mining the third pillar of its national industrial strategy.

The meeting was part of the Future Minerals Forum hosted by Saudi Arabia under the theme “Creating Impact,” which gathered representatives from nearly 90 countries and over 50 organizations. The conference highlighted the vital role of mining in Saudi Arabia and the global economy.

Key topics discussed included boosting value addition in mineral-producing countries and developing green metals using advanced technologies and renewable energy.

The ministerial meeting facilitated the signing of several memorandums of understanding aimed at strengthening international partnerships and advancing Saudi Arabia’s mining and minerals sector.

In 2022, Saudi Arabia increased its estimated untapped mineral wealth from $1.3 trillion to $2.5 trillion, a move intended to support the Kingdom’s efforts to diversify its economy.

Global mining investments

In his opening remarks, Al-Khorayef stated that the global mining industry would need investments of $6 trillion over the next decade to meet growing demand, particularly driven by the global energy transition. He emphasized that metals are the foundation of supply chains and are essential for meeting the increasing demand for critical materials.

The minister also stressed the importance of continuing three initiatives launched at last year’s conference, namely, the International Framework for Critical Minerals, a network of centers of excellence to build mining expertise in the Middle East, and a priority-based approach to supply chain development.

He proposed forming a ministerial-level steering committee to oversee these initiatives and called on multilateral organizations to develop a roadmap to mitigate investment risks and enhance collaboration.

In remarks to Asharq Al-Awsat on the sidelines of the conference, Al-Khorayef said that Saudi Arabia is working closely with Arab countries, particularly those with established mining sectors like Morocco, Jordan and Egypt.

The minister highlighted the need for regional integration in mining, as companies often operate across multiple areas, stressing that mining is a key component of Saudi Vision 2030, particularly as the world shifts toward sustainable energy solutions and technologies that require large quantities of minerals.

Yonis Ali Guedi, Djibouti’s Minister of Energy and Natural Resources told Asharq Al-Awsat that his country had signed a new cooperation agreement with Saudi Arabia to enhance collaboration in the mining sector and exchange training expertise. The agreement also includes resource-sharing and highlights Djibouti’s need for Saudi investments, he added.

The minister underlined the significant role Saudi companies could play in developing Djibouti’s mining sector, while also acknowledging progress in local industries. On a broader level, Guedi pointed to the growth of Africa’s mining sector and underscored the importance of maintaining this momentum to meet global demand.

Focus on critical minerals

In comments to Asharq Al-Awsat, Julius Maada Bio, Sierra Leone’s Minister of Mines and Mineral Resources, said that financing remains the greatest challenge for his country’s mining sector.

Exploration of critical minerals, he explained, requires significant investments with high risks, a challenge faced by many African nations. Bio underscored the importance of improving Sierra Leone’s infrastructure and value chain capabilities, from exploration to processing, and expressed interest in leveraging Saudi expertise in mining.

He added that Sierra Leone is seeking to strengthen international cooperation to create a comprehensive framework for critical minerals, with a focus on sustainability.

Malaysia’s Minister of Natural Resources, Environment, and Climate Change Nik Nazmi Nik Ahmad highlighted that the key challenge for his country’s mining sector is its technological gap. He noted that advanced technologies for producing and processing rare earth minerals are concentrated in a few major countries, limiting Malaysia’s competitiveness in global markets.

The minister also pointed to geopolitical tensions disrupting global supply chains, which has complicated matters for countries like Malaysia that rely on trade with both China and the United States.

Despite these challenges, Ahmad stated that his country is working to boost its domestic processing capabilities for rare earth minerals, aiming to reduce its reliance on raw material exports.

Yemeni Minister of Minerals Dr. Saeed Al-Shamasi emphasized Yemen’s valuable mineral resources, including lithium, which is essential for batteries and renewable energy technologies. Yemen also holds reserves of copper and other strategic minerals.

He called for urgent foreign investments to develop the sector, given Yemen’s lack of advanced infrastructure. Al-Shamasi also highlighted Yemen’s efforts to strengthen cooperation with Saudi Arabia, noting the establishment of a Saudi-Yemeni Business Council to facilitate investment across various sectors.

International agreements

During the ministerial meeting, Al-Khorayef signed cooperation agreements with six countries: Djibouti, the United Kingdom, Jordan, Zambia, Austria and France. These agreements aim to strengthen international partnerships and advance the Kingdom’s mining sector.

The accompanying exhibition featured cutting-edge technologies and innovations in mining, promoting global collaboration to achieve sustainability in the sector.

Meanhwile, two global alliances, including local and international companies, won exploration licenses for six mining sites in Saudi Arabia during the seventh round of mining competitions, according to the Ministry’s statement on Tuesday.