Abu Dhabi energy and financial giants establish hydrogen alliance
Abu Dhabi’s three leading companies have teamed up to embark on the hydrogen economy bandwagon. The state runs oil company the Abu Dhabi National Oil Company (ADNOC), Mubadala Investment Company (Mubadala), and ADQ signed a Memorandum of Understanding (MoU) to establish the Abu Dhabi Hydrogen Alliance.
The alliance will aim to invest in both blue hydrogen (which is produced by using fossil fuel) and green hydrogen (produced by using renewable). It will develop hydrogen as a new low carbon fuel both locally and internationally.
The hydrogen economy is gaining momentum across the world with hydrogen seems like a sustainable option going forward. Saudi Arabia, the world largest oil exporter, also wants to be the largest merchant of hydrogen. It ha been building one of the largest electrolyser plants in its futuristic city, Neom.
The alliance will aim to build a green hydrogen economy in the UAE by promoting hydrogen across various sectors, including utilities, mobility and industry by partnering with local and international companies. As a part of the hydrogen roadmap strategy, it will develop hydrogen production sites in Abu Dhabi and the UAE.
ADQ is one of the largest holding companies in the region which has ownerships in over 90 companies including leading entities such as Abu Dhabi Ports, Abu Dhabi Airports, Etihad Rail, Etihad Steel, Abu Dhabi National Energy Company (TAQA) and Emirates Nuclear Energy Corporation (ENEC).
ADNOC will look into its existing hydrogen capacity, which is based on fossil fuel, to develop blue hydrogen capacity utilising its existing infrastructure. It can benefit from its already established position in the hydrogen industry. Voluminous natural gas reserves and abundant solar energy in the oil-rich Emirati state can strengthen the alliance position in the hydrogen market. It already produces nearly 0.3 million tonnes/year of hydrogen for its downstream operations, which it plans to ramp up to over 0.5 million tonnes/year using its natural gas reserves. A week ago, ADNOC signed an agreement with Japan’s Ministry of Economy, Trade and Industry to explore fuel ammonia and carbon recycling.
Meanwhile, Mubadala has taken the first initiative under the alliance partnership and agreed with Siemens Energy, an energy technology giant, to build a green hydrogen production plant at Masdar City in Abu Dhabi. The goal is to produce green hydrogen and synthetic fuel by using renewable energy.