State-owned QatarEnergy has teamed up with Anglo-Dutch supermajor Shell to jointly pursue investments in blue and green hydrogen projects in the UK.
QatarEnergy said on Tuesday that it has signed an agreement with Shell and the two players will jointly “target integrated and scalable opportunities in key sectors where hydrogen could help decarbonise, especially around industrial cluster development”.
The Qatari player said the joint venture also plans to target “the transport sector, with a focus on the London metropolitan area”.
State-owned giant Qatar Petroleum (QP) recently rebranded as QatarEnergy as part of a push to be seen, as making progress on energy transition ahead of the crucial COP26 climate summit in Glasgow.
QatarEnergy is increasingly embarking on cleaner energy projects that are aimed at lowering its carbon footprint, as energy transition gathers pace.
The agreement between the two energy giants was “signed on the sidelines of the UK Government’s Global Investment Summit”, QatarEnergy said.
The company said the collaboration will exploit both companies’ expertise in delivering large and technically complex energy projects.
QatarEnergy chief executive Saad Sherida al Kaabi said the agreement “creates a viable path for innovation and investments in low carbon fuels and technologies across the UK’s energy sector, a key area of investment for QatarEnergy”.
“This agreement also builds on QatarEnergy’s commitment to provide reliable access to cleaner energy globally,” he added.
Shell chief executive Ben Van Beurden said: “Hydrogen will play an important role in helping society reach net zero and momentum is growing.”
QatarEnergy is among the first Middle-East based national oil and gas giants to have recently rebranded as a diversified energy company, stating an intent to lower carbon emissions and speed up the drive for the energy transition.
Al Kaabi recently said becoming QatarEnergy reflects the company’s understanding of the global changes and its response to the need to protect the planet and its environment, although these ambitions are mainly about promoting liquified natural gas as a less damaging alternative to other fossil fuels
“Not only will our LNG [liquefied natural gas] projects bring additional cleaner energy to customers across the globe, but we will continue our heightened commitment to our central role in the global energy transition,” he said.
QatarEnergy is "moving full steam ahead to develop the North Field by building state-of-the-art LNG trains” that would take its leadership position further with a production capacity of 126 million tonnes per annum by 2027.
The company has reiterated that natural gas continues to be QatarEnergy’s core business and the company is “conducting that in the most responsible way”.
“Natural gas is also part of the solution in the ongoing energy transition and that it will be a requirement for sustaining the development of the world for at least a few decades,” al Kaabi added.