JULYASIA BUSINESS OUTLOOK9NEWSROOMMITSUI & CO.'S GREEN AMMONIA PLANT IN UAE TARGETS LOWER EMISSIONS BY 2030Mitsui & Co, in collaboration with partners including ADNOC's TA'ZIZ, Fertiglobe, and South Korea's GS Energy, has commenced the construction of an ammonia plant in Al Ruwais, UAE. This initiative is part of Mitsui's strategy to bolster global supply chains for cleaner fuels like hydrogen and ammonia, contributing to efforts aimed at mitigating climate change.The plant, scheduled to begin operations in 2027, aims to produce 1 million metric tons of ammonia annually. Mitsui highlighted that the ammonia produced will feature lower carbon dioxide (CO2) emissions compared to conventional methods, although specific details were not provided in their statement.Key to the project's environmental strategy is the installation of facilities to capture and store CO2 emitted during the manufacturing process. Mitsui plans to transition to producing clean ammonia by 2030, underscoring its commitment to sustainability in the production of this essential chemical.The project's financing includes support from the Japan Bank for International Cooperation (JBIC), which has signed a loan agreement with Mitsui. The loan, co-financed with Sumitomo Mitsui Banking Corp, amounts to $27 million. This financial backing underscores the international cooperation involved in advancing sustainable energy projects.Mitsui intends to utilize a portion of the clean ammonia produced at the UAE plant to supply markets in Japan and other Asian countries. The ammonia will serve various purposes, including as a fuel, chemical feedstock, and fertilizer component, further enhancing its role in green energy initiatives and industrial applications. JULYASIA BUSINESS OUTLOOK9SRI LANKA SECURES DEBT DEALS WITH CHINA, SETS STAGE FOR IMF BAILOUTSri Lanka has reached a significant milestone by finalizing long-awaited debt agreements with its bilateral lenders, including China, a crucial step towards fulfilling conditions set by the International Monetary Fund (IMF) for a bailout package. The announcement was made by government spokesman Bandula Gunawardana on Tuesday, noting that a treasury delegation is en route to France to sign agreements with creditors on Wednesday.The debt agreements are critical to Sri Lanka's efforts to stabilize its economy after defaulting on foreign debt in April 2022 due to severe foreign exchange shortages. This economic crisis led to the resignation of then-President Gotabaya Rajapaksa. Negotiations with creditors, particularly bilateral lenders, who account for 28.5 percent of Sri Lanka's total outstanding foreign debt of $37 billion, had been prolonged, with expectations for a resolution by the end of 2022.China stands as the largest single bilateral lender to Sri Lanka, with loans amounting to $4.66 billion, out of a total of $10.58 billion borrowed from other countries. Japan follows with $2.35 billion, and India with $1.36 billion. Sri Lanka's commercial borrowings include $12.55 billion from International Sovereign Bonds (ISBs) and $2.18 billion from the China Development Bank.Gunawardana mentioned that negotiations with ISB holders are ongoing while emphasizing that the debt agreement with bilateral creditors marks a significant achievement for Sri Lanka. President Ranil Wickremesinghe is set to disclose further details of these agreements in a national address on Wednesday evening. Gunawardana declined to provide specifics, indicating they would be formally announced by the president.
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