Abu Dhabi’s Masdar signs deal for green hydrogen production plant

Dubai: Abu Dhabi renewable energy group Masdar has signed a deal to develop a green hydrogen production plant in the UAE with France’s Engie and Fertiglobe, the company said on Wednesday.

In a separate statement, it said it had also agreed with TotalEnergies and Siemens Energy to co-develop a project for sustainable aviation fuel using green hydrogen in Masdar City.

Masdar, Engie and Fertiglobe - a joint venture between chemical firm OCI NV and the state-owned Abu Dhabi National Oil Company (ADNOC) - will explore the co-development of an up to 200MW capacity plant, Masdar said.

The deal targets the construction of an operational green hydrogen production facility by 2025 in Al Ruwais, Abu Dhabi.

Fertiglobe will be the sole long-term user of the hydrogen, which will be used to produce green ammonia.

Masdar, owned by Abu Dhabi sovereign wealth fund Mubadala, did not disclose the value of either deal.

Engie and Masdar formed a $5 billion partnership in December to explore green hydrogen development in the UAE, aiming for at least 2 gigawatts of production capacity by 2030.

Green hydrogen - obtained by passing renewably-produced electricity through water to split the element from oxygen - has been touted by some as a key fuel for energy users looking to cut greenhouse gas emissions.

Both the UAE and neighbour Saudi Arabia have set out big ambitions for hydrogen.

UAE Energy Minister Suhail Al Mazrouei said on Monday his country aims to capture around a quarter of the global market for the fuel, while Saudi Arabia’s energy minister said in October the kingdom wants to be the world’s top hydrogen supplier.