The Abu Dhabi oil company is partnering with two of its sovereign wealth funds to make the petroleum-rich emirate an exporter of blue and green hydrogen.
Abu Dhabi National Oil Co. entered into an alliance with Mubadala Investment Co. and ADQ will produce hydrogen from natural gas and renewable energy and market the fuel both abroad and in the United Arab Emirates, ADQ said in a statement.
In a related deal, Abu Dhabi Future Energy Co., also known as Masdar, has agreed with Siemens Energy AG to develop a facility to make green hydrogen in Masdar City in Abu Dhabi, Mubadala said in a statement. Munich-based Siemens Energy is already building a hydrogen demonstration installation at the Mohammed bin Rashid Al Maktoum Solar Park in the neighboring emirate of Dubai.
Some Middle Eastern countries that have built their fortunes on oil are trying to develop hydrogen as a fuel, as some of their buyers have shifted towards less polluting crude oil alternatives. Saudi Arabia’s energy minister has said he wants the kingdom – the world’s largest oil exporter – to largest shipper of hydrogen.
Abu Dhabi, like Saudi Arabia, produces natural gas, which it could use to develop so-called blue hydrogen. It also has plenty of sunshine, which can be used to make a variety called green hydrogen. Abu Dhabi is the capital and largest emirate in the UAE.
According to ADQ, Adnoc will independently develop blue hydrogen and make the green variant in collaboration with the two equity funds.
Adnoc produces approximately 300,000 tons of hydrogen annually for its downstream operations and plans to expand production to more than 500,000 tons, a statement said. It is “well placed to build on its privileged position as a major holder and producer of natural gas reserves,” said Adnoc.
(Updates ongoing with details of the second deal.)