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.



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.