New Delhi: Abu Dhabi National Oil Company (ADNOC) has teamed up with two sovereign wealth funds to establish an alliance that will allow petroleum-rich Abu Dhabi to expand its footprint into the arena of Hydrogen fuel and export the same to emerging international markets. In a statement released on January 17, ADQ said, "Mubadala Investment Company (Mubadala), The Abu Dhabi National Oil Company (ADNOC), and ADQ, have announced the signing of a Memorandum of Understanding (MoU) to establish the Abu Dhabi Hydrogen Alliance (the Alliance). The Alliance partners will collaborate to establish Abu Dhabi as a trusted leader of low-carbon green and blue hydrogen in emerging international markets."
They will also work together to build a substantial green hydrogen economy in the UAE, it added.
Under the terms of the agreement, 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. Mubadala, ADNOC and ADQ will also align on their approach to international markets, for projects developed under the Alliance, with the aim of positioning Abu Dhabi as a reliable and secure supplier of hydrogen and its carriers to customers around the world as demand grows.
During a virtual ceremony, the MoU was signed by HE Khaldoon Khalifa Al Mubarak, Managing Director and Group Chief Executive Officer of Mubadala Investment Company, HE Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, and HE Mohamed Hassan Alsuwaidi, Chief Executive Officer of ADQ.
Commenting on the importance of the Alliance, HE Dr. Al Jaber said, "I am pleased that we are coming together as ADNOC, Mubadala and ADQ on this important initiative to explore and develop the potential of hydrogen as a new, low carbon fuel. This alliance integrates our complementary strengths as energy and financial leaders to address the global challenge of meeting energy demand, while reducing emissions."
In addition, this Alliance will build on Abu Dhabi and the UAE's global energy leadership and position as the centre of gravity for energy innovation, he added.
HE Khaldoon Khalifa Al Mubarak said: "As a responsible investor, we are actively engaged in a number of new energy investments that will contribute to more efficient and lower emission energy solutions. Hydrogen offers significant potential in this regard and with the renewables expertise and experience of Masdar, we are well placed to develop leadership in the green hydrogen value chain."
"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."
The companies are building on their complementary strengths to accelerate Abu Dhabi's hydrogen leadership. ADNOC already produces around 300,000 tons per annum of hydrogen for its downstream operations, with plans to expand to more than 500,000 tons, and is well placed to build on its advantaged position as a major natural gas reserves holder and producer, with existing infrastructure and strong partnerships and customer relationships around the world. The signing of the MoU follows ADNOC's agreement last week with the Ministry of Economy, Trade and Industry of Japan to explore cooperation on fuel ammonia and carbon recycling, harnessing technologies which will enable the hydrogen economy.
Mubadala will contribute through Masdar, its global renewable energy champion, and its extensive network of international technology and investment partners and other relationships. ADQ will bring together its portfolio companies across the energy value chain, with companies such as Abu Dhabi Ports, Abu Dhabi Airports, Etihad Rail, Emirates Steel, Abu Dhabi National Energy Company (TAQA) and Emirates Nuclear Energy Corporation (ENEC) to enable activities undertaken by the Alliance.
While the Alliance will pursue green hydrogen domestically, ADNOC will continue to develop blue hydrogen independently within the UAE, leveraging its existing capacity and capabilities.
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