TA’ZIZ, one of the leading constructors in the diversification drive within the industrialized push for the UAE, announced that it would award an EPC contract, worth $1.7 billion, to South Korea’s Samsung E&A for the establishment of one of the world’s largest methanol plants located at Al Ruwais Industrial City in the region of Al Dhafra Abu Dhabi, enabling the broader aim of economic diversification within the UAE.

The First Methanol Production Plant in the UAE

The new facility will annually produce 1.8 million tons of methanol, the first of its kind in the UAE. The plant will open by 2028 and will use clean energy supplied by the national grid, thereby making it one of the world’s most energy-efficient methanol plants. The facility, when opened in 2028, will help strengthen the position of the UAE as a significant player in chemicals globally.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, said, “This landmark EPC contract award is a significant step in realizing TA’ZIZ’s vision to drive the UAE’s industrial growth by creating a world-scale integrated chemicals ecosystem in Al Dhafra region.”

Strengthening the UAE’s Global Chemical Position

The partnership between TA’ZIZ and SAMSUNG E&A attempts to further the UAE’s position as an international leader in the production of sustainable and advanced methanol. Hong Namkoong, President and CEO of SAMSUNG E&A, expressed pride in the collaboration, saying, “SAMSUNG E&A is honored to receive this recognition, highlighting TA’ZIZ’s and our commitment to driving industrial innovation, diversifying the UAE’s economy, and enabling sustainable growth.”

Also read: Aramco Partners with Carbon Clean and Samsung E&A for Advanced Carbon Capture Demonstration

Expansion of the UAE’s Chemical Industry

The first phase will be capable of producing 4.7 million tons per annum (mtpa) of a portfolio of chemicals that includes methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride, vinyl chloride monomer, and caustic soda. It is the first time that the UAE will produce these chemicals in-country, contributing to TA’ZIZ efforts to strengthen local industry and drive diversification.

By 2028, TA’ZIZ would increase chemical production, and thereby it will further the strategic objectives of speeding up industrialization in the region. The plant is going to reduce further dependence on imports by the country and help the developing chemical sector of the country.

Chestnut Carbon stated it has signed a new long-term offtake agreement with Microsoft for the delivery of high-quality nature-based carbon removal credits to be generated as carbon removal from Chestnut’s ARR project in the Southern United States, covering Arkansas, Texas, and Louisiana. The new offtake agreement follows the signing of the initial offtake agreement between the two companies December 2023.

This is one of the most significant nature-based and engineered carbon removal projects in the US, Chestnut has signed a deal to supply Microsoft with over 7 million tons of carbon removal credits over the next 25 years. Beyond this, the project will also see restoration of approximately 60,000 acres of land through planting more than 35 million native trees.

Scaling Up Carbon Removal Efforts

Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, said, “This agreement with Chestnut Carbon is another positive step towards Microsoft’s goal to become carbon negative by 2030. We look forward to the prospect of scaling forest restoration within the United States, attracting sophisticated private capital in the process. We are glad to see the Sustainable Restoration Project diversify the ecological impact of our global carbon removal portfolio.”

With this latest deal, Chestnut will significantly scale its carbon removal portfolio. By 2030, Chestnut plans to expand its ARR portfolio to 500,000 acres, removing 100 million tons of CO2.

The Chestnut Sustainable Restoration Project

The Chestnut Sustainable Restoration Project stands out for its focus on creating long-lasting ecosystems of native forests at scale. Unlike other projects, it focuses on planting biodiverse hardwood and softwood trees, offering a broad range of environmental benefits. Microsoft’s new agreement with Chestnut directly supports the continued growth of this initiative.

Chestnut’s Sustainable Restoration Project stands out for several key features that ensure its effectiveness and long-term impact. The project, registered with the Gold Standard, issues high-quality carbon removal credits based on actual carbon sequestration, not avoidance. Chestnut ensures long-term durability by conserving land, planting biodiverse species, and implementing risk mitigation practices to sustain carbon storage.

Also read: Microsoft Expands Carbon Removal Partnership with re.green

The project restores marginal agricultural land to native forests, creating value that wouldn’t exist without the global carbon credit market.

Beyond carbon removal, the project provides significant environmental benefits, including enhancing native wildlife habitats, improving air and water quality, and supporting economic development through community engagement and alternative land use strategies.