Abu Dhabi: The Abu Dhabi Department of Economic Development (ADDED) and UK-based net zero asset management company Hycap Group have signed an agreement to develop green hydrogen production, storage, and transport in UAE's capital city.
A Memorandum of Understanding (MoU) between Hycap Middle East and ADDED will also see the two organisations join forces to assess establishing an industrial complex in Abu Dhabi with the involvement of local partners. The complex will specialise in industries related to hydrogen and the advancement of renewable energy sources, aiming to attract and establish more industrial companies and bolster the value chains within this sector, ADDED and Hycap said in a joint statement issued on Monday.
Under the MoU, the Industrial Development Bureau (IDB), ADDED’s arm to develop and regulate the industrial sector, and Hycap will work together to establish an industrial complex in Abu Dhabi for the development of renewable energy sources, an electrolysis plant, a hydrogen storage facility, and hydrogen tankers for transportation, said the companies.
Hycap will also work on creating a robust ecosystem of industries in Abu Dhabi that revolve around the hydrogen industry and clean energy infrastructure. This includes establishing clean hydrogen production facilities, clean hydrogen storage and transport, an electrolyser manufacturing facility, electrical charging manufacturing, fuel cell manufacturing, and developing bus and truck manufacturing facilities. The strategy is to align supply and demand for hydrogen locally, scaling up to create a viable proposition for export sales growth. Furthermore, HAYCAP seeks to attract global industrial companies specialising in this field to their industrial complex in Abu Dhabi.
Arafat Al Yafei, Executive Director of the Industrial Development Bureau (IDB), said, “This is part of the partnerships we are building with leading global powerhouses to enable our manufacturing sector to achieve the Abu Dhabi Industrial Strategy’s (ADIS) goals”.
“ADIS is guiding our efforts to accelerate the growth of the industrial sector and its transformation to Industry 4.0 methods and techniques, placing sustainability and human development at its core. The strong performance of the industrial sector in 2023 reflects the continued success of ADIS initiatives as the sector now contributes over 17 per cent to Abu Dhabi’s non-oil GDP and 9 per cent to the overall GDP”.
Hycap's growth in UAE
In November 2023, Hycap Group opened its regional headquarters in the Abu Dhabi Global Market (ADGM) to support its regional strategic expansion. It unveiled plans for a UAE-based GCC Fund to invest in companies serving the net zero energy transition and clean hydrogen supply chain.
Jo Bamford, Chairman and Founding Partner of Hycap Group, said, ‘We opened our offices in the UAE to place Hycap Group at the centre of the world’s emerging green hydrogen hubs.”
The UAE’s National Hydrogen Strategy aims to make it a top 10 producer of green hydrogen by 2031, with an output target of 1.4 million tonnes per year. The UAE plans to establish hydrogen hubs to accelerate industry adoption of hydrogen, cultivate a supply chain, and enable infrastructure.