Abu Dhabi’s government – run oil company is working with two of its sovereign wealth funds to turn the petroleum – rich emirate into an exporter of blue and green hydrogen.
Abu Dhabi National Oil Co. has an alliance with Mubadala Investment Co. and ADQ to produce hydrogen from natural gas and renewable energy and market the fuel overseas as well as in the United Arab Emirates, ADQ said in a statement.
In a related agreement, 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. Siemens Energy in Munich is already building a hydrogen demonstration plant in the Mohammed bin Rashid Al Maktoum Solar Park in the neighboring Emirate of Dubai.
Some countries in the Middle East that have built their fortunes on oil are developing hydrogen as a fuel, as some of their buyers are moving to less polluting alternatives to crude oil. Saudi Arabia’s energy minister has said he wants the kingdom – the world’s largest oil exporter – to largest carrier of hydrogen.
Abu Dhabi, like Saudi Arabia, produces natural gas that it can use to introduce the blue hydrogen. It also has plenty of sunshine, which can be used to make a variant called green hydrogen. Abu Dhabi is the capital and largest emirate in the UAE.
According to ADQ, Adnoc will independently develop blue hydrogen, while working with the two welfare funds to make the green variety.
Adnoc produces about 300,000 tons of hydrogen annually for its downstream operations, and plans to expand production to more than 500,000 tons, according to a statement. It is “well placed to build on its favorable position as a major container and producer of natural gas reserves,” Adnoc said.
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