emirates7 - ADNOC has completed its acquisition of OCI Global’s 50 percent plus one share in Fertiglobe plc, raising its ownership stake to 86.2 percent, while the remaining 13.8 percent will continue to be publicly traded on the Abu Dhabi Securities Exchange (ADX).
Fertiglobe is the largest global exporter of urea and ammonia by sea, serving 53 countries and holding a combined market share of approximately 10 percent in these products worldwide.
This acquisition is a significant step in ADNOC’s ambitious strategy to expand its chemicals sector and low-carbon fuels business, positioning the company to become one of the top five players in the global chemicals market.
With this acquisition, Fertiglobe will serve as the foundation for ADNOC’s growth in fertilizers and low-carbon ammonia. ADNOC plans to transfer its stakes in existing and upcoming low-carbon ammonia projects to Fertiglobe at cost, thereby establishing a world-class platform for low-carbon ammonia, which is crucial for energy transition. This includes two low-carbon ammonia projects in Abu Dhabi and other initiatives from ADNOC’s global portfolio.
Consolidating these two Abu Dhabi projects will increase Fertiglobe’s total sellable capacity to 8.6 million tonnes per annum (mtpa) of net ammonia and urea combined, more than doubling its current merchant ammonia capacity of 1.6 mtpa.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC’s Managing Director and Group CEO, stated, “ADNOC’s majority shareholding in Fertiglobe is another achievement in our international chemicals growth strategy and our ambition to be a top player in the chemicals sector. Fertiglobe is an exceptional company, and it will be the vehicle for ADNOC's low-carbon ammonia initiatives, contributing to a fair and equitable global energy transition. We see substantial growth prospects for Fertiglobe, and I am confident that under the dedicated leadership of Ahmed El-Hoshy, the company will more value for its shareholders.”
Fertiglobe’s current management team, including CEO Ahmed El-Hoshy, will remain in place, reflecting ADNOC’s confidence in their expertise. El-Hoshy has 15 years of experience in expanding OCI’s US and European businesses in ammonia and methanol through various growth strategies, generating significant shareholder value.
El-Hoshy remarked, “The completion of the ADNOC transaction is a historic milestone for Fertiglobe, reinforcing our positive long-term outlook and unique market position while elevating our ambitions. As ADNOC’s platform for global ammonia growth, Fertiglobe is well-positioned to meet rising global demand for low-carbon solutions and contribute to a sustainable future. We look forward to integrating with ADNOC’s ecosystem, maximizing shareholder value, and balancing disciplined growth with dividend distributions.”
Fertiglobe plans to continue expanding its low-carbon fuels business following its success in the recent H2Global bid, where it secured a €397 million contract for renewable ammonia deliveries to Europe at €1,000 per tonne until 2033. The project requires limited capital expenditure, yielding attractive returns for the company.
Fertiglobe aims for robust double-digit internal rates of return (IRRs) on all future growth projects, focusing on disciplined and value-accretive expansion to capitalize on projected global low-carbon ammonia demand growth, which is expected to reach 24 million tonnes by 2032, compared to nearly zero currently.
Industry consultants estimate that demand growth for low-carbon ammonia will outpace supply growth by approximately 11 million tonnes by 2032, driven by increased applications for low-carbon ammonia. ADNOC aims to capture 5 percent of the global low-carbon hydrogen market by 2030, in alignment with the UAE’s National Hydrogen Strategy.
Fertiglobe plans to present its detailed value creation and growth strategy during its Capital Markets Day in Q1 2025.
Fertiglobe is the largest global exporter of urea and ammonia by sea, serving 53 countries and holding a combined market share of approximately 10 percent in these products worldwide.
This acquisition is a significant step in ADNOC’s ambitious strategy to expand its chemicals sector and low-carbon fuels business, positioning the company to become one of the top five players in the global chemicals market.
With this acquisition, Fertiglobe will serve as the foundation for ADNOC’s growth in fertilizers and low-carbon ammonia. ADNOC plans to transfer its stakes in existing and upcoming low-carbon ammonia projects to Fertiglobe at cost, thereby establishing a world-class platform for low-carbon ammonia, which is crucial for energy transition. This includes two low-carbon ammonia projects in Abu Dhabi and other initiatives from ADNOC’s global portfolio.
Consolidating these two Abu Dhabi projects will increase Fertiglobe’s total sellable capacity to 8.6 million tonnes per annum (mtpa) of net ammonia and urea combined, more than doubling its current merchant ammonia capacity of 1.6 mtpa.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC’s Managing Director and Group CEO, stated, “ADNOC’s majority shareholding in Fertiglobe is another achievement in our international chemicals growth strategy and our ambition to be a top player in the chemicals sector. Fertiglobe is an exceptional company, and it will be the vehicle for ADNOC's low-carbon ammonia initiatives, contributing to a fair and equitable global energy transition. We see substantial growth prospects for Fertiglobe, and I am confident that under the dedicated leadership of Ahmed El-Hoshy, the company will more value for its shareholders.”
Fertiglobe’s current management team, including CEO Ahmed El-Hoshy, will remain in place, reflecting ADNOC’s confidence in their expertise. El-Hoshy has 15 years of experience in expanding OCI’s US and European businesses in ammonia and methanol through various growth strategies, generating significant shareholder value.
El-Hoshy remarked, “The completion of the ADNOC transaction is a historic milestone for Fertiglobe, reinforcing our positive long-term outlook and unique market position while elevating our ambitions. As ADNOC’s platform for global ammonia growth, Fertiglobe is well-positioned to meet rising global demand for low-carbon solutions and contribute to a sustainable future. We look forward to integrating with ADNOC’s ecosystem, maximizing shareholder value, and balancing disciplined growth with dividend distributions.”
Fertiglobe plans to continue expanding its low-carbon fuels business following its success in the recent H2Global bid, where it secured a €397 million contract for renewable ammonia deliveries to Europe at €1,000 per tonne until 2033. The project requires limited capital expenditure, yielding attractive returns for the company.
Fertiglobe aims for robust double-digit internal rates of return (IRRs) on all future growth projects, focusing on disciplined and value-accretive expansion to capitalize on projected global low-carbon ammonia demand growth, which is expected to reach 24 million tonnes by 2032, compared to nearly zero currently.
Industry consultants estimate that demand growth for low-carbon ammonia will outpace supply growth by approximately 11 million tonnes by 2032, driven by increased applications for low-carbon ammonia. ADNOC aims to capture 5 percent of the global low-carbon hydrogen market by 2030, in alignment with the UAE’s National Hydrogen Strategy.
Fertiglobe plans to present its detailed value creation and growth strategy during its Capital Markets Day in Q1 2025.