UAE is looking for investors to build hydrogen export facilities Business and Economy News


The hydrogen market is small now, but it could be worth up to $ 700 billion a year by 2050, according to Bloomberg.

Abu Dhabi seeks investors to help build hydrogen export facilities as Middle East oil producers intensify plans to sell what is seen as a crucial fuel in the transition to energy cleaner.

Abu Dhabi National Oil Co., which pumps almost all of the oil and natural gas in the UAE, is in talks with energy companies about buying stakes in hydrogen projects, according to people familiar with the matter. It also intends to sign long-term supply contracts before carrying out investments, they said.

The hydrogen market is small today, but could be worth up to $ 700 billion a year by 2050, according to BloombergNEF.

Fuel export projects, which only emit water vapor when burned, are likely to cost billions of dollars. But amid a global push to reduce greenhouse gas emissions, Persian Gulf countries such as the United Arab Emirates and Saudi Arabia are looking for hydrogen to reduce their dependence on oil.

Offers Japan and Korea

Hydrogen could become an important source of energy in the next 20 years, said Sultan Al Jaber, head of Adnoc and a UAE climate envoy. The company has signed agreements to explore fuel sales with the Japanese government and GS Energy of Korea.

Gulf state oil companies want to turn their experience into exporting liquid fuel to transport hydrogen or ammonia to customers around the world for electricity, transportation and industrial use.

Saudi Aramco aims to have a “large share” of the market that will emerge from 2030.

It is likely that most of what Adnoc exports is blue hydrogen, created by converting natural gas and capturing the by-product of carbon dioxide. Hydrogen can be converted to ammonia to send it more easily.

On Wednesday, Adnoc said it would study business opportunities for ammonia projects in the UAE with Inpex Corp. and Jera Co., and with the Asian country’s state energy firm.

Ammonia plant

Adnoc, which already produces hydrogen for its refineries, will increase production by expanding an oil processing plant and the Borouge petrochemical plant in the Ruwais industrial center, according to people. The additional hydrogen will be used for an ammonia plant planned with Fertiglobe, a fertilizer company.

As a sign of the greater interest of international companies in using the region as a hydrogen base, Italian producer Eni SpA said it will study the commercial viability of these projects in Egypt. Eni said it will study the use of renewable energy or carbon capture technology to prevent or eliminate carbon emissions.

Abu Dhabi also wants to develop green hydrogen, which is produced with renewable energy, such as solar energy, in a process that does not emit carbon. Blue hydrogen is cheaper and is expected to remain so for many years to come.

The UAE is considering setting a target for zero net emissions, Bloomberg reported last month, which no OPEC member has yet done. It also seeks to increase its capacity for renewable energy.

Still, alongside green initiatives, the country is spending billions of dollars to allow it to pump more crude. These investments have caused tensions with Saudi Arabia and the Organization of the Petroleum Exporting Countries, with the UAE arguing that its current share of oil production is too low.

Source link