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Aramco and SABIC Agri-Nutrients Receive World’s First TÜV Certificate of Accreditation for ‘Blue’ Hydrogen, Ammonia Products

Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
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Aramco and SABIC Agri-Nutrients Receive World’s First TÜV Certificate of Accreditation for ‘Blue’ Hydrogen, Ammonia Products

Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov

Aramco and the SABIC Agri-Nutrients Company (“SABIC AN”), have obtained the world’s first independent certifications recognizing “blue” hydrogen and ammonia production, Aramco said in a statement on Thursday.

The certifications were granted by TÜV Rheinland, a leading independent testing, inspection and certification agency based in Germany, to SABIC AN, in Jubail, for 37,800 tons of “blue” ammonia and to Aramco’s wholly-owned refinery (SASREF), also in Jubail, for 8,075 tons of “blue” hydrogen, said the statement.

To certify ammonia and hydrogen as “blue”, a significant part of the CO2 associated with the manufacturing process needs to be captured and utilized in downstream applications, it said.

The certifications “signify a major milestone in our efforts to develop clean energy solutions, and advance our hydrogen and ammonia export capabilities,” said Aramco Vice President of Chemicals Olivier Thorel.

“This independent recognition reinforces the work of Aramco and SABIC in decarbonizing multiple sectors, including energy, aviation, transportation chemicals and fertilizer industries.”

SABIC Agri-Nutrients CEO Abdulrahman Shamsaddin said: “We are confident of further boosting growth with our low carbon portfolio helping our fertilizers as well as chemicals customers achieve their very own sustainability ambitions.”

“We are fully aware that the current global industry challenges related to climate change and greenhouse gas emissions will require us to accelerate our pace of innovation to further strengthen our sustainability commitment. We are well positioned to move forward in this direction,” he added.

As for SABIC Vice President, Energy Efficiency and Carbon Management Fahad Al-Sherehy, he said: “To help achieve Saudi Arabia’s target for net-zero by 2060 as part of the Saudi Green Initiative, SABIC recognizes that hydrogen will play an essential role in decarbonization and it is part of SABIC’s overall roadmap toward carbon neutrality by 2050, with a 20% reduction target in carbon emissions by 2030. Furthermore, SABIC is exploring opportunities to utilize hydrogen for green chemistry to strengthen its sustainable solution offerings.”

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Argentina Seals $20 Billion IMF Deal, Tears Down Currency Controls

Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva and Argentina's President Javier Milei talk ahead of a session on Artificial Intelligence (AI), Energy, Africa and Mediterranean on the second day of the G7 summit in Borgo Egnazia, Italy, June 14, 2024. (Reuters)
Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva and Argentina's President Javier Milei talk ahead of a session on Artificial Intelligence (AI), Energy, Africa and Mediterranean on the second day of the G7 summit in Borgo Egnazia, Italy, June 14, 2024. (Reuters)
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Argentina Seals $20 Billion IMF Deal, Tears Down Currency Controls

Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva and Argentina's President Javier Milei talk ahead of a session on Artificial Intelligence (AI), Energy, Africa and Mediterranean on the second day of the G7 summit in Borgo Egnazia, Italy, June 14, 2024. (Reuters)
Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva and Argentina's President Javier Milei talk ahead of a session on Artificial Intelligence (AI), Energy, Africa and Mediterranean on the second day of the G7 summit in Borgo Egnazia, Italy, June 14, 2024. (Reuters)

Argentina sealed a $20 billion, 48-month Extended Fund Facility deal with the International Monetary Fund on Friday and, in a major policy move ahead of the deal, dismantled key parts of its years-long currency controls and loosened its grip on the peso.

The IMF will disburse $12 billion by next Tuesday, while another $2 billion will become available by June.

The deal is expected to help Argentina "catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets," the IMF said.

"Key pillars of the program include maintaining a strong fiscal anchor, transitioning towards a more robust monetary and FX regime, with greater exchange rate flexibility," it added in a statement.

Earlier, the South American nation's central bank announced it would undo a fixed currency peg from Monday, letting the peso freely fluctuate within a moving band between 1,000 and 1,400 pesos per dollar, versus 1,074 at the close on Friday.

Argentina will eliminate major parts of the so-called "cepo" capital controls that have restricted access to foreign currency, the central bank said in a statement.

Companies, from this year, will also be able to repatriate profits out of the country, a key demand from businesses that could unlock more investment.

"As of Monday, we will be able to put an end to the foreign exchange restrictions which were imposed in 2019 and which limit the normal functioning of the economy," Economy Ministry Luis Caputo said at a press conference.

Libertarian President Javier Milei addressed the nation in a televised speech on Friday night and stated that Argentina was "in a better position than ever to withstand external turbulences."

However, an IMF staff report on the $20 billion deal warned that "downside risks remain elevated," as program implementation could be challenged by rising global trade tensions and, domestically, by the volatility added by the upcoming electoral cycle and fragile social conditions.

'THIS IS A DEVALUATION'

The new exchange rate system could allow the peso to weaken almost a third if the currency were to hit the weaker edge of the band, although the central bank is likely to have some tools to intervene. The band will expand 1% each month, the bank said.

The policy move came ahead of the final IMF nod for what is the 23rd program in a long and mottled history between the grains-producing nation and the Washington-based lender.

Funds from the IMF deal will be used to recapitalize Argentina's central bank and the government expects they will help usher in a healthier currency, reduce inflation and allow for tax cuts, Caputo said.

Other multi-year disbursements were also announced, including $12 billion from the World Bank and $10 billion from the Inter-American Development Bank.

Argentina needs the financial firepower to bolster depleted foreign currency reserves that are in the red on a net basis and have been falling in recent weeks, amid sticky inflation and a country risk index that has started to rise again.

The funds are also key to unlocking the currency controls, which will likely prompt a period of local market volatility already stirred up by the international tariff war between the United States and its trade partners.

"This is a devaluation, which rather goes against what the government would have intended to calmly get to elections," said economist Ricardo Delgado, referring to midterm legislative elections later in the year.

"It's a bit surprising that at this time of global volatility, the controls are being lifted," he added.