RIYADH: In a significant development, Sahara International Petrochemical Co., known as Sipchem, has received the green light from the Ministry of Energy to kickstart the establishment of a blue ammonia plant in Saudi Arabia.
The plant, slated to be situated within Jubail Industrial City, will have an annual production capacity of 1.2 million tons, according to the company’s statement.
Blue ammonia is known for its low carbon footprint, and Sipchem plans to use advanced energy and feedstock technologies for efficient operations.
The facility, slated to be situated within Jubail Industrial City, is primed to churn out a staggering 1.2 million tons of ammonia annually, marking a notable stride in sustainable industrial practices.
Blue ammonia is known for its low carbon footprint, created from natural gas as a feedstock while capturing and storing the CO2 emissions produced in its manufacturing.
Sipchem expressed its commitment to implementing the latest advancements in energy and feedstock technologies to ensure maximum operational efficiency.
This initiative aligns with Saudi Arabia’s Vision 2030, which emphasizes supporting and empowering national companies in the sector.
Sipchem holds assets valued at $6.3 billion and a market capitalization of around $5.3 billion. It’s listed on Tadawul and part of the MSCI Emerging Markets Index.
The company witnessed strong demand for its products in Europe in the second quarter of 2022, driving a 4 percent increase in half-year sales.