ADNOC, MUBADALA AND ADQ FORM HYDROGEN ALLIANCE
▶ Focus on lighter, cleaner gas is part of energy diversification efforts in the Emirates
Abu Dhabi National Oil Company, Mubadala and industrial holding company ADQ signed an agreement to form a hydrogen alliance focusing on low-carbon green and blue hydrogen as part of the UAE’s energy diversification efforts.
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 UAE”, according to the Abu Dhabi Media Office.
The partners plan to develop a road map to accelerate the adoption and use of the lighter, cleaner gas across major sectors such as utilities, mobility and industry. The announcement follows plans by Adnoc to set up a hydrogen ecosystem and is part of Abu Dhabi’s efforts to become a global centre for low-carbon fuels.
Separately, Mubadala said it signed a preliminary agreement with Siemens Energy to explore investment and commercial opportunities in clean energy and green hydrogen.
It will channel investment into the development of advanced technology and the manufacturing of equipment and synthetic fuel production.
The focus on hydrogen is part of Mubadala’s engagement in “new energy investments that will contribute to more efficient and lower-emission energy solutions”, said Khaldoon Al Mubarak, managing director and group chief executive of the investment company.
The agreements were announced only days before Abu Dhabi Sustainability Week begins. Held online this year, the event starts tomorrow and will explore social, economic and technological opportunities for a green recovery after Covid-19.
The UAE will also host the Atlantic Council Global Energy Forum, which will shed light on the country’s energy transition plans.
Mubadala Investment Company and Siemens Energy signed an agreement to explore investment and commercial opportunities in clean energy and green hydrogen.
The pact is expected to establish Abu Dhabi as a global hub of low-carbon fuels and channel investment into the development of advanced technology, the manufacture of equipment and the production of synthetic fuel, Mubadala said yesterday.
The companies will initially focus on boosting Abu Dhabi’s green hydrogen capabilities as the UAE continues to pursue its ambitious carbon-reduction targets and develop its hydrogen economy. The partners will later look to expand into international markets, it said.
“Mubadala is strongly committed to the development of the UAE’s hydrogen economy, and we are pleased to be extending our relationship with Siemens Energy in this important emerging energy sector,” said Musabbeh Al Kaabi, chief executive of UAE Investments at Mubadala.
Through the partnership, “we expect to be able to leverage Abu Dhabi’s strong foundations for the production and sale of green hydrogen”, he said.
Mubadala and Siemens Energy are looking to build a “strong business case and attract investment for the development of new facilities and establish Abu Dhabi as a reliable supplier of green hydrogen to global markets”, he said.
The UAE, the second-biggest Arab economy, has pledged to reduce its carbon emissions by a quarter by 2030 and has already unveiled its clean energy and carbon emissions targets.
Adnoc also intends to establish a “hydrogen ecosystem” to meet growing global demand for the lighter and cleaner gas that is emerging as an alternative to fossil fuels.
Clean hydrogen can cut the hydrocarbons industry’s greenhouse gas emissions by 34 per cent, according to BloombergNEF.
The growth of hydrogen can help develop a €120 billion ($142.3bn) industry in Europe by 2050, according to Aurora Energy Research. McKinsey expects that the development of a hydrogen economy could generate $140bn in annual revenue by 2030 and help support 700,000 jobs in the US alone.
Mubadala and Siemens Energy have a long-standing relationship. Together with Masdar and other energy players in the Mubadala group, the two companies will use renewable energy to produce green hydrogen and synthetic fuels that will provide clean and transportable energy to “fuel new hydrogen-based ecosystems that are supplied from the UAE”.
The two partners also plan to establish an Abu Dhabi-based “world-class player in the synthetic fuels sector” and jointly develop technology to bring down the production cost of green hydrogen and synthetic fuels, Mubadala said.
The partnership underscores the UAE’s “commitment towards developing a sustainable, green hydrogen economy”, said Dietmar Siersdorfer, managing director of Siemens Energy Middle East.
“We look forward to advancing and leveraging the many applications of green hydrogen, in partnership with Mubadala and the other key stakeholders throughout the hydrogen value chain, for the benefit of the UAE and the world.”
The partnership is one of three hydrogen-related agreements being signed during the Abu Dhabi Sustainability Week, which begins tomorrow in the emirate, and part of the UAE’s overarching framework for the development of its hydrogen economy.
Adnoc, Mubadala and state-controlled holding company ADQ yesterday announced the formation of the Abu Dhabi Hydrogen Alliance, a partnership to position the UAE’s capital as a leader in low-carbon green and blue hydrogen.
The alliance will focus on establishing Abu Dhabi as a “trusted exporter of hydrogen to emerging international markets”, the Abu Dhabi Media Office said on Twitter.
Hydrogen has a market potential of about $11 trillion and is expected to generate $2.5tn in direct revenue and account for indirect infrastructure worth $11tn by 2050 as its production increases six-fold, according to Bank of America Securities.
The alliance plans to develop a road map to hasten the adoption and use of the gas in the UAE by utilities, transport and industry players.
Adnoc plans to explore “green hydrogen opportunities” and will place “special emphasis” on pursuing blue hydrogen projects by expanding its existing hydrogen capacity and leveraging its significant gas reserves and infrastructure, said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Adnoc Group chief executive.
“Working together as an alliance, we will identify viable international market opportunities, while we develop a road map to create hydrogen production sites in Abu Dhabi and the UAE,” he said.
Mubadala said the first initiative under its deal with Siemens and the broader Abu Dhabi Hydrogen Alliance will be “the consideration of a demonstrator plant located at Masdar City”.