Covestro, Fertiglobe, and TA’ZIZ Sign MoU to Explore Low-Carbon Ammonia Supply and Infrastructure

Covestro, Fertiglobe, and TA’ZIZ Sign MoU to Explore Low-Carbon Ammonia Supply and Infrastructure

(IN BRIEF) Covestro, Fertiglobe, and TA’ZIZ have signed a Memorandum of Understanding to explore collaboration across the ammonia and nitric acid value chains, with a particular focus on securing access to low-carbon and green ammonia for Covestro’s global production sites. The partners will assess short-term ammonia supply from Fertiglobe to Covestro facilities in China and the United States while evaluating longer-term options for Europe, China, and the U.S. based on carbon-captured and renewable ammonia, supporting Covestro’s transition toward lower-emission manufacturing of key polyurethane precursors such as MDI and TDI. The agreement also includes joint evaluation of storage, transport, and broader infrastructure needs, reflecting the strategic alignment of Covestro, Fertiglobe, and TA’ZIZ within XRG’s Global Chemicals platform and the UAE’s growing role in sustainable chemicals production.

(PRESS RELEASE) LEVERKUSEN, 7-Feb-2026 — /EuropaWire/ — Covestro, Fertiglobe, and TA’ZIZ have entered into a Memorandum of Understanding (MoU) to explore cooperation across the ammonia and nitric acid value chains, with a focus on strengthening access to low-carbon and green ammonia for Covestro’s global operations. The agreement was signed during the visit of German Chancellor Friedrich Merz to the United Arab Emirates and signals a shared commitment to advancing more sustainable chemical production pathways.

The MoU establishes a framework for evaluating both near-term supply opportunities and longer-term strategic collaboration, reflecting the evolving structure of Covestro within XRG’s Global Chemicals platform following XRG’s acquisition of the company in December 2025. The partners see potential for enhanced integration across international markets, leveraging Fertiglobe’s position as a leading ammonia producer and TA’ZIZ’s role in developing a world-scale chemicals ecosystem in Abu Dhabi.

Under the initial phase of the agreement, Covestro and Fertiglobe will assess short-term ammonia supply options from Fertiglobe’s existing production sites to Covestro’s facilities in China and the United States. In parallel, they will examine longer-term supply scenarios for sites in Europe, China, and the U.S., prioritising ammonia produced through carbon capture technologies and renewable-based green ammonia projects led by Fertiglobe.

Ammonia is a critical feedstock for Covestro’s production of MDI (diphenylmethane diisocyanate) and TDI (toluene diisocyanate), key components used in the manufacture of polyurethane hard and soft foams across a wide range of industrial applications. Securing reliable access to lower-carbon ammonia is therefore strategically important for Covestro’s decarbonisation roadmap and supply chain resilience.

Dr. Markus Steilemann, Chief Executive Officer of Covestro, stated that a potential strategic supply arrangement with Fertiglobe could enhance the company’s access to a vital raw material while supporting its gradual transition toward lower-carbon production methods. He highlighted that such an agreement would improve operational flexibility across Covestro’s global sites, mitigate long-term cost and availability risks, and demonstrate tangible progress within the broader partnership between Covestro and XRG.

Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe, emphasised that combining Fertiglobe’s ammonia production portfolio with Covestro’s industrial expertise and international footprint creates significant opportunities. He noted that the MoU provides a structured basis for assessing concrete projects, spanning supply, infrastructure, and downstream applications.

Mashal Saoud Al Kindi, Chief Executive Officer of TA’ZIZ, described the agreement as a strong endorsement of the UAE’s expanding chemicals landscape. He stated that the collaboration aligns with TA’ZIZ’s mission to foster sustainable industrial growth, attract global partners, and position the UAE as a leading hub for future chemical production.

Beyond supply discussions, the three parties will jointly evaluate enabling infrastructure such as storage, transportation, and logistics solutions. They will also explore broader business opportunities across the ammonia value chain, both in the UAE and internationally, with the aim of building more integrated and resilient industrial ecosystems.

About Fertiglobe
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, and an early mover in sustainable ammonia. Fertiglobe’s production capacity comprises of 6.6 million tons of urea and merchant ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest producer of nitrogen fertilizers in the Middle East and North Africa (MENA), and benefits from direct access to six key ports and distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Headquartered in Abu Dhabi and incorporated in Abu Dhabi Global Market (ADGM), Fertiglobe employs more than 2,700 employees. Fertiglobe is listed on the Abu Dhabi Securities Exchange (“ADX”) under the symbol “FERTIGLB” and ISIN “AEF000901015.

To find out more, visit: www.fertiglobe.com

About TA’ZIZ
TA’ZIZ is a critical enabler of the UAE’s industrial development and economic diversification ambitions. Founded in 2020 as a joint venture between ADNOC and ADQ, TA’ZIZ is a manufacturing, industrial services, logistics and utilities ecosystem, that drives, supports, and enables the production of transition fuels and new products across the chemicals value chain.

Once completed in 2028, the TA’ZIZ Industrial Chemicals Zone will be set to produce 4.7 million tonnes per annum (mtpa) of chemicals. This includes a 1 mtpa ammonia plant, a 1.8 mtpa methanol plant and 1.9 mtpa of marketable products from its integrated polyvinyl chloride (PVC) complex. The PVC complex, which produces PVC, ethylene dichloride (EDC), vinyl chloride monomer (VCM), and caustic soda, will be one of the world’s top three largest single site PVC complexes.

The first phase of the TA’ZIZ ecosystem is expected to contribute $50 billion (AED183 billion) to the UAE economy, creating 20,000 construction jobs and 6,000 operational roles while enabling local manufacturers to produce hundreds of new end products for the first time, supporting national industrial growth and ADNOC’s ambition to become a top three global chemicals player.

To find out more, visit: www.taziz.com.

About Covestro: 
Covestro is one of the world’s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Covestro supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Covestro are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself.

The company is geared completely to the circular economy. In addition, Covestro aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group’s Scope 3 emissions are also set to be climate neutral by 2050. Covestro generated sales of EUR 14.2 billion in fiscal year 2024. At the end of 2024, the company had 46 production sites worldwide and employed approximately 17,500 people (calculated as full-time equivalents).

Forward-Looking Statements 
This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Media Contacts:

Przemyslaw Jedrysik
Global Head of Corporate Communications
przemyslaw.jedrysik@covestro.com
+49 214 6009 7861
+49 162 38 60218

Svenja Paul
Global Financial and Business Media Relations
svenja.paul@covestro.com
+49 173 3056862

SOURCE: Covestro