The Abu Dhabi government oil company joins two of its sovereign wealth funds to turn the oil-rich emirate into an exporter of blue and green hydrogen.
It formed an alliance with Abu Dhabi National Oil Co. Mubadala Investment Co. i ADQ will produce hydrogen from natural gas and renewable energy and market the fuel abroad and in the UAE, ADQ said in a statement.
In a related agreement, Abu Dhabi Future Energy Co., also known as Masdar, agreed with Siemens Energy AG to develop a facility to manufacture green hydrogen in the city of Masdar in Abu Dhabi, Mubadala said in a statement. Munich-based Siemens Energy is already under construction a hydrogen demonstration plant at Mohammed bin Rashid Al Maktoum Solar Park in Dubai’s neighboring emirate.
Some Middle Eastern states that built their fortunes with oil want to develop hydrogen as a fuel, given a shift among some of their buyers towards less polluting alternatives to crude oil. Saudi Arabia’s energy minister has said he wants the kingdom, the world’s largest oil exporter, to become the country the largest hydrogen charger.
Abu Dhabi, like Saudi Arabia, produces natural gas, which it could use to develop what is known as blue hydrogen. It also has a lot of sunlight, which can be used to produce a variant called green hydrogen. Abu Dhabi is the capital and largest emirate of the United Arab Emirates.
Adnoc will develop blue hydrogen independently, while cooperating with the two wealth funds to make the green variety, according to ADQ.
Adnoc produces about 300,000 tons of hydrogen annually for its downstream operations and intends to expand production to more than 500,000 tons, according to a statement. It is “well placed to take advantage of its advantageous position as a major owner and producer of natural gas reserves,” Adnoc said.
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