• Mon. Aug 15th, 2022

The UAE’s energy heavyweights have teamed up to focus on green hydrogen and renewable energy

ByRoman Frąckiewicz

Dec 7, 2021

The UAE is attempting to build a “world-leading” sustainable energy portfolio, with state-owned companies Abu Dhabi National Oil Company (Adnoc), as well as Taqa, joining Mubadala Investment Company as key partners in Masdar, an Abu Dhabi-based renewables company.

The plan for the corporations to merge their renewables, as well as green hydrogen portfolios, was disclosed this week by Sheikh Mohamed bin Zayed Al Nahyan, who is the Abu Dhabi Crown Prince subject to requisite agreements being completed and essential licenses being secured. The recently created strategic partnership will debut under Masdar brand with over 23 gigawatts of pledged as well as exclusive renewable energy production, with a goal of more than doubling that amount to more than 50 gigawatts by 2030.

Taqa will own a 43 percent stake in Masdar’s renewable energy sector, while Mubadala, the company that founded Masdar in 2006, will own a 33 percent stake and Adnoc will own a 24 percent stake. Adnoc, on the other hand, will own a majority 43 percent of Masdar’s hydrogen business, with both Mubadala and Taqa each owning 33 percent and 24 percent. Sultan Ahmed Al Jaber, the chairman of Adnoc, will continue to lead the larger Masdar organization, which will focus on green hydrogen and renewable energy.

“As the United Arab Emirates commemorates its Jubilee, today’s historic cooperation between 3 Abu Dhabi powerhouses solidly places Adnoc at the frontline of the global energy shift and marks our debut into the international green power space,” Al Jaber said. “Adnoc will further leverage on the many attractive international and local renewable energy and hydrogen potential through our direct engagement in Masdar and close coordination with our partners.”

Adnoc stated it have ambitious intentions to expand both international and domestic hydrogen value chains, relying on its trading capabilities, current infrastructure, as well as logistics to aim both green and blue hydrogen projects. The corporation presently produces roughly 300,000 tonnes of hydrogen per year for its downstream activities and has claimed that it plans to increase that to over 500,000 tpa; however, it is unclear how much green and blue hydrogen production would make up that total. The development of the new strategic alliance follows an agreement between Taqa and Adnoc last month to collaborate on renewable energy as well as green hydrogen potential, with a goal of generating at least 30GW of the renewable energy by 2030.

Earlier this year, Mubadala, Adnoc, as well as Taqa’s main shareholder ADQ created a hydrogen alliance to focus on blue hydrogen and low-carbon green projects. Taqa’s chairman, Mohamed Alsuwaidi, declared that his company’s mission was to “be a champion of low carbon electricity and water” following the formation of the strategic alliance this week. “We have made the way to grow to more than 50GW of the renewable capacity by 2030 by taking a controlling stake in Masdar’s renewable energy company and working in collaboration with Adnoc and Mubadala, making us the biggest player in the MENA (Middle East North Africa) territory and one of the world’s leading contributors to renewable power generation,” he added.

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