The Japan Bank for International Cooperation (JBIC) signed a $12 million loan agreement with Mitsui for ammonia production and sales business to be conducted through its UAE-subsidiary Ammonia Project Company (APC).

The loan is co-financed with Sumitomo Mitsui Banking Corporation (SMBC), bringing the total co-financing amount to approximately $27 million, JBIC said in a press statement.

The loan is intended to provide the funds necessary for Mitsui to invest in APC for the ammonia production and sales business in the UAE, the statement added.

On Tuesday, Mitsui announced that its consortium with TA'ZIZ, Fertiglobe, and South Korea's GS Energy Corporation has agreed to start construction of a low-carbon ammonia production facility in Al Ruwais, UAE. The plant, which is expected to start operations from 2027, will produce 1 million tonnes per year of ammonia with lower CO2 emissions compared to conventional ammonia.

Mitsui said the plant will also incorporate a carbon capture and storage facility to begin production of clean ammonia by 2030, adding that it will offtake a certain volume of the clean ammonia for supplying Japan and other Asian markets.

Last month, Maire announced that its unit Tecnimont has received from Fertiglobe the notice to proceed with the construction activities related to the low-carbon ammonia plant under development in TA’ZIZ Derivatives Park, in the Ruwais region. The Engineering, Procurement and Construction (EPC) contract was awarded in July 2022.

In a separate statement last month, TA'ZIZ had disclosed that construction is set to begin in the third quarter of 2024,

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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