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The Abu Dhabi government oil company is partnering with two of its sovereign wealth funds to turn the oil-rich emirate into an exporter of blue and green hydrogen.
Abu Dhabi National Oil Co. has formed an alliance with Mubadala Investment Co. and ADQ to produce hydrogen from natural gas and renewable energy and market the fuel abroad 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 green hydrogen production facility at Masdar City in Abu Dhabi, Mubadala said in a statement. Siemens Energy, based in Munich, is already building a hydrogen demonstration plant at the Mohammed bin Rashid Al Maktoum solar park in the neighboring emirate of Dubai.
Some states in the Middle East that have built their fortunes on oil are looking to develop hydrogen as a fuel, given the trend by some of their buyers towards cleaner alternatives to crude. Saudi Arabia’s Energy Minister said he wanted the kingdom – the world’s largest exporter the world’s largest shipper of hydrogen.
Abu Dhabi, like Saudi Arabia, produces natural gas, which it could use to develop what’s known as blue hydrogen. It also benefits from sufficient sunlight, which can be harnessed to make a variant called green hydrogen. Abu Dhabi is the capital and the largest emirate of the United Arab Emirates.
Adnoc will develop the blue hydrogen independently, while cooperating with the two wealth funds to manufacture the green variety, according to the ADQ.
Adnoc produces around 300,000 tonnes of hydrogen per year for its downstream operations and intends to increase production to over 500,000 tonnes, according to a statement. It is “well positioned to take advantage of its advantageous position as a major holder and producer of natural gas reserves,” Adnoc said.
(Updates throughout with details of the second offering.)
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