ADNOC continues vertical integration for low-emission ammonia and derivatives
By on February 15, 2026
In a series of recent agreements, UAE-based ADNOC has reinforced an emerging, low-emission ammonia supply chain centred on the Middle East.
Supplying Fertiglobe’s ammonia to Covestro’s global manufacturing sites
Click to learn more about the new partnership between Fertiglobe, Covestro and TA’ZIZ to develop an ammonia supply chain centered on the Middle East.
In December 2025, ADNOC’s lower-carbon investment arm XRG acquired Covestro, a globally leading manufacturer of polymers. Covestro had already entered into agreements for the supply of low-emissions ammonia as a feedstock for key polymer products, and is now directly connected to another ammonia supplier, Fertiglobe (themselves an ADNOC subsidiary since 2023).
Covestro, Fertiglobe, and developers of the emerging chemicals ecosystem in the TA’ZIZ industrial zone (Al Ruwais, UAE) will collaborate across the ammonia and nitric acid value chains, and explore “short-term” ammonia supply opportunities from Fertiglobe’s production facilities to Covestro’s sites in China and the United States (potentially with longer-term supply options to Covestro sites in Europe, China and the United States).
The potential strategic supply arrangement with Fertiglobe could strengthen our access to a critical raw material while supporting the gradual transition towards lower-carbon production pathways. Reliable low-carbon ammonia supply enhances operational flexibility across our sites and helps manage long-term cost and availability risks. At the same time, the agreement is a first concrete step in translating our partnership with XRG into tangible business impact.
Markus Steilemann, CEO of Covestro, in Fertiglobe’s official press release, 6 Feb 2026
We see strong potential in combining our ammonia production portfolio with Covestro‘s industrial expertise and global footprint. The Memorandum of Understanding creates a structured basis to assess concrete projects and opportunities – from supply and infrastructure to downstream applications.
Ahmed El-Hoshy, CEO of Fertiglobe, in his organisation’s official press release, 6 Feb 2026
This Memorandum of Understanding highlights the strategic potential of the UAE’s expanding chemicals landscape.Together with Covestro and Fertiglobe, we see significant growth opportunities across the ammonia value chain, underpinned by TA’ZIZ’s role in building an ecosystem that enables sustainable growth, attracts global partners, and positions the UAE at the forefront of future chemical production.
Mashal Saoud Al Kindi, CEO of TA’ZIZ, in Fertiglobe’s official press release, 6 Feb 2026
Fertiglobe is currently overseeing two low-emissions ammonia production sites: the Egypt Green project (which won the first H2Global tender in July 2024 and recent funding from the European Investment Bank), and a CCS-based mega-project near the TA’ZIZ zone. Ammonia is a key raw material for Covestro’s production of MDI (diphenylmethane diisocyanate) and TDI (toluene diisocyanate), essential components for polyurethane hard and soft foams.