Fertiglobe Becomes ADNOC’s Global Platform for Low-Carbon Ammonia Growth

On October 15, 2024, ADNOC announced the successful acquisition of OCI Global’s 50% plus one share in Fertiglobe plc, raising its ownership stake in the company to 86.2%. The remaining 13.8% of shares will continue to be publicly traded on the Abu Dhabi Securities Exchange (ADX). Fertiglobe stands as the largest seaborne exporter of urea and ammonia, supplying products to 53 countries and capturing approximately 10% of the global market for these commodities. This acquisition marks a pivotal achievement in ADNOC’s strategic vision for growth within the chemicals sector, particularly its commitment to expanding low-carbon fuel initiatives, thereby positioning itself among the top five global chemicals producers.

Fertiglobe will serve as ADNOC’s primary platform for advancing its fertilizer and low-carbon ammonia operations. To ensure disciplined growth and value creation for Fertiglobe, ADNOC plans to transfer its interests in existing and upcoming low-carbon ammonia projects to Fertiglobe, effectively establishing a world-class platform for ammonia production as a critical component of energy transition. Among these projects are two lower-carbon ammonia facilities located in Abu Dhabi, which, when operational, are expected to add around 2 million tons per annum (mtpa) of capacity. This will more than double Fertiglobe’s current merchant ammonia capacity of 1.6 mtpa and elevate its total sellable capacity to 8.6 mtpa for combined net ammonia and urea, alongside other global initiatives.

His Excellency Dr. Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, emphasized that achieving majority ownership in Fertiglobe signifies a substantial step toward ADNOC’s international chemicals growth strategy. He expressed confidence in Fertiglobe’s potential for expansion under the continued leadership of CEO Ahmed El-Hoshy. El-Hoshy has a robust background, having spent 15 years enhancing OCI’s ammonia and methanol operations in the U.S. and Europe.

El-Hoshy remarked that the completion of the ADNOC acquisition marks a historic moment for Fertiglobe, reinforcing its promising long-term prospects and strategic position in the market. He highlighted the company’s commitment to meeting the rising global demand for low-carbon solutions and its integration into ADNOC’s ecosystem to maximize shareholder value while maintaining a balanced approach to growth and dividends.

Fertiglobe will also continue to expand its low-carbon fuels segment, having recently secured a landmark contract through the H2Global initiative for €397 million in renewable ammonia sales to Europe at a price of €1,000 per ton, effective until 2033. With an emphasis on maintaining robust double-digit internal rates of return for future growth initiatives, Fertiglobe is poised to capitalize on projected increases in low-carbon ammonia demand, which is expected to reach 24 million tons by 2032. ADNOC aims to capture 5% of the global low-carbon hydrogen market by 2030, aligning with the UAE's National Hydrogen Strategy. Fertiglobe will present a comprehensive value creation and growth strategy during its Capital Markets Day scheduled for Q1 2025.