Abu Dhabi’s Mubadala Investment Company and Italian energy infrastructure operator Snam have signed a memorandum of understanding to collaborate on investment and development initiatives in hydrogen.

The companies will carry out a number of assessment activities, including technical and economic feasibility studies, to explore potential projects and solutions to promote hydrogen development in the United Arab Emirates (UAE) and worldwide.

The MoU is said to reinforce the confidence of both Mubadala and Snam in the commercial and technological potential of the hydrogen industry, as well as its capacity to accelerate the energy transition.

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Snam was Europe’s first company to test the injection of a blend of hydrogen and natural gas in its network and it is committed to get its infrastructure ready to transport increasing volumes of hydrogen.

Fully dedicated

The company also has established a business unit “fully dedicated to the scouting” for new technologies as well as developing new projects by teaming up with other partners to adopt hydrogen in several industries such as railways and steel.

Marco Alvera, Snam chief executive said: “This agreement shows our commitment to accelerate the energy transition and the development of green gases, more specifically, at global level by applying our skills and technologies to enhance the competitiveness of this key solution for the climate challenge.

“At the same time, Snam is further strengthening its presence in the UAE and in the Gulf area, which we consider strategic because of their crucial role in the energy transition,” said Alvera.

“We will work closely with Mubadala leveraging our mutual know-how and investment capabilities in order to identify projects of common interest in the UAE and contribute to the development of a hydrogen-fuelled economy.”

Mubadala recently formed the Abu Dhabi Hydrogen Alliance, alongside compatriots Adnoc and ADQ, to build a substantial hydrogen economy for the UAE, and developing a roadmap to accelerate the country’s adoption and use of hydrogen in major sectors such as utilities, mobility and industry.

The alliance will work towards establishing Abu Dhabi as a leader of low-carbon green and blue hydrogen in emerging international markets and will help build a substantial green hydrogen economy in the UAE.

Responsible investor

Commenting on the MoU, Musabbeh Al Kaabi, chief executive of UAE investments, Mubadala added: “As a responsible investor and an active player in the global energy transition, Mubadala has long pioneered and championed a balanced energy mix through our investments in portfolio companies that are contributing to clean, affordable and resilient energy solutions in the UAE and abroad.

“This signing with Snam is an extension of our joint efforts to develop a hydrogen economy for the UAE, and we are committed to advancing the role hydrogen will play to meet future energy demand globally.”