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Japan’s IHI Corporation and Emirates National Oil Company Group (ENOC) have signed a memorandum of understanding to evaluate the feasibility of tapping the abundant solar resources of Dubai and neighboring emirates in the UAE to produce and sell green ammonia derived from renewables.

IHI Corporation, formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd., is a Japanese engineering corporation headquartered in Tokyo, while ENOC is a Dubai-based integrated global oil and gas player operating across the energy sector value chain.

This is Dubai’s first green ammonia feasibility study.

ENOC Group, and Japanese heavy-industry manufacturer IHI Corporation today signed a Memorandum of Understanding (MoU) to explore establishing a low-carbon hydrogen and low-carbon ammonia supply chain in the UAE. pic.twitter.com/z9fA8D5Pq9

— ENOC (@enoc_official) November 10, 2022

At present, commercially available ammonia derived from fossil fuels emits carbon dioxide during production, but using green ammonia in areas such as power generation, marine fuels, and raw materials for fertilizers makes keeping supply chain CO₂ emissions extremely low possible.

Also, technologies for green ammonia production, storage, and transportation are already well-established which will contribute to swift marketplace adoption.

Under the accord, IHI and ENOC group would manufacture green ammonia at the existing assets of ENOC. The two would explore exporting ammonia to Japan and elsewhere in Asia and selling it locally to electric utilities and as fuel for ships.

IHI would oversee technical studies and demand surveys in Japan, with ENOC handling local studies such as site selection, applicable regulations and availability of renewable energies and water as hydrogen source. They would build and operate a pilot plant after completing a feasibility assessment.

The UAE will host the 28th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change in 2023.

That nation has lifted its carbon dioxide emissions reduction target to 31% by 2030. It has accordingly embarked on a renewables plan that takes advantage of its ample land and sunshine. IHI and the ENOC will collaborate to swiftly establish an ammonia value chain to help materialize the carbon reduction goals of Japan and the UAE.