Qatar Energy has laid the foundation stone for a 4.4 billion Qatari rials ($1.2 billion) blue ammonia plant in Mesaieed Industrial City, the state-owned Qatar News Agency (QNA) reported on Tuesday.

The plant is expected to start production in the second quarter of 2026, the report quoted Minister of State for Energy Affairs and Qatar Energy’s President and CEO Saad bin Sherida Al Kaabi as saying.

The QNA report said the facility consists of an ammonia production unit with a capacity of 1.2 million tonnes per year, along with an additional unit for CO2 injection and storage, with a capacity of 1.5 million tonnes per year.

Qatar Energy will provide the new plant with more than 35 megawatts (MW) of electricity from the solar power plant currently being built in Mesaieed Industrial City.

"In building this facility, we will rely on our own capabilities and expertise in the construction and operation of ammonia plants used for the production of fertilisers. This will be carried out in cooperation between Qatar Energy and Qatar Fertiliser Company (QAFCO)," Al Kaabi said.

The project is being built by a consortium of ThyssenKrupp and Consolidated Contractors Company (CCC) supported by working teams from Qatar Energy and QAFCO.

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

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.