Fertiglobe set to be ADNOC’s ‘vehicle for low-carbon ammonia growth globally’

ADNOC has announced the completion of its acquisition of OCI’s 50%+1 holding in Fertiglobe, raising its stake in the company to 86.2% with 13.8% remaining in free float on the Abu Dhabi Securities Exchange (ADX).

In a statement issued today (15 October), ADNOC that it now intends to integrate its domestic and global portfolio of projects in low-carbon ammonia and make Fertiglobe its ‘vehicle for low-carbon ammonia growth globally’.

In line with this strategy, ADNOC said that it will transfer its stakes in existing and future low-carbon ammonia projects to Fertiglobe ‘at cost and when ready for startup’, with a view to creating a ‘world-class growth platform for low-carbon ammonia as a key energy transition fuel’.

This transfer will include ADNOC’s two ‘lower carbon ammonia’ projects in Abu Dhabi and other projects in its global portfolio. Together the two projects in Abu Dhabi would add around 2 mtpa. When they are added to the mix, Fertiglobe’s merchant ammonia capacity will more than double from its current level of 1.6 mtpa.

Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, said: ‘ADNOC’s majority shareholding in Fertiglobe marks another milestone in the delivery of our ambitious international chemicals growth strategy and goal to become a top five chemicals player. Fertiglobe is a world-class company, and it will be the vehicle through which ADNOC advances its low-carbon ammonia business, supporting our efforts to enable a just, orderly, and equitable global energy transition. We see significant growth opportunities for Fertiglobe and I am confident that under the continued and dedicated leadership of Ahmed El-Hoshy, the company will deliver greater value for its shareholders.’

Ahmed El-Hoshy, who will continue as Fertiglobe’s CEO and step down from his role at OCI Global, added: ‘Positioned as the vehicle of ADNOC’s plans to establish a global growth platform for ammonia, Fertiglobe is poised to meet the increasing global demand for low-carbon solutions and bring us closer to a more sustainable future. We look forward to joining ADNOC’s integrated ecosystem and unlocking the full potential of our product portfolio while maximizing shareholder value and maintaining our commitment to balancing disciplined growth with dividend distributions.’

Image: ADNOC