State-owned giants Abu Dhabi National Oil Company (Adnoc), Mubadala and ADQ have signed a key agreement to form a hydrogen alliance, aimed at focusing on low-carbon green and blue hydrogen projects, in line with the emirate’s energy diversification plans.
Abu Dhabi’s Media Office said the alliance will focus on establishing Abu Dhabi as a trusted exporter of hydrogen to emerging international markets and “build a substantial green hydrogen economy in the United Arab Emirates”.
The trio signed a memorandum of understanding on Sunday for establishing the Abu Dhabi Hydrogen Alliance.
The alliance will “develop a roadmap to accelerate the UAE’s adoption and use of hydrogen in major sectors such as utilities, mobility and industry, through their respective operating companies and with international partners”, partner Mubadala said in a statement.
Khaldoon Khalifa al Mubarak, chief executive of Mubadala, said that hydrogen offers significant potential for the company, along with its expertise of Masdar, the green energy company in the emirate.
“Our engagement with Adnoc and ADQ is an important step in the establishment of the UAE’s hydrogen economy, and to align on technology, investment, the development of the domestic market and our approach to international partners and offtakers,” he said.
Adnoc chief executive Sultan Ahmed al Jaber said that, while the company plans to “explore green hydrogen opportunities through the alliance, Adnoc will place “special emphasis on pursuing blue hydrogen projects by expanding on its existing hydrogen capacity” and by “leveraging its significant gas reserves”.
"Working together as an alliance, we will identify viable international market opportunities, while we develop a roadmap to create hydrogen production sites in Abu Dhabi, and the UAE," he said.
Adnoc produces around “300,000 tonnes per annum of hydrogen for its downstream operations, with plans to expand to more than 500,000 tonnes”.
The state-owned giant said last year that it plans to develop a 'hydrogen ecosystem' as part of its latest spending push in the low carbon space.
Adnoc said it plans to ramp up the production of hydrogen to meet emerging global demand for the gas and for ammonia derived from it.
Mohamed Hassan Alsuwaidi, chief executive of industrial holding company ADQ, said the newly formed hydrogen alliance would “deepen the hydrogen energy economy in the UAE allowing it to meet the rapidly growing global demand for hydrogen worldwide”.
Green hydrogen plans
Mubadala-owned renewables player Masdar is expected to play a key role in Abu Dhabi’s plan to develop a green hydrogen economy.
Mubadala’s role within the newly formed alliance is likely to focus on green hydrogen plans, while Adnoc would continue its focus on blue hydrogen projects.
Khaldoon Khalifa al Mubarak, chief executive of Mubadala, said that hydrogen offers significant potential for the company, along with its expertise of Masdar in the green energy domain.
“Our engagement with Adnoc and ADQ is an important step in the establishment of the UAE’s hydrogen economy, and to align on technology, investment, the development of the domestic market and our approach to international partners and offtakers,” he added.
In addition to the MoU signed by the Abu Dhabi trio, Masdar, separately inked MoU's with Abu Dhabi Department of Energy, Etihad Airways, Lufthansa Group, Khalifa University of Science and Technology, Siemens Energy, and Marubeni Corporation, aimed at developing Abu Dhabi’s green hydrogen economy.
Masdar said the initiative “aims to establish a demonstrator plant at Masdar City, Abu Dhabi’s flagship sustainable urban development community, to explore the development of green hydrogen and other sustainable fuels.”
Masdar, Siemens and Marubeni will jointly develop the infrastructure to implement the demonstration project, and each of these companies will contribute to secure the needed funding, it added.
Mohamed Jameel Al Ramahi, the chief executive of Masdar, said green hydrogen will be a “game-changer for decarbonisation strategies,” as Abu Dhabi aims to achieve climate goals and deliver on its sustainability commitments.
“The UAE’s abundant solar resources, combined with our infrastructure, resources and knowledge base in the energy industry will help us to become a key player in the global hydrogen economy,” he said.