The Abu Dhabi-run oil company is joining 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. formed an alliance with Mubadala Investment Co. and ADQ will produce hydrogen from natural gas and renewable energy and will sell the fuel abroad, as well as in the United Arab Emirates, ADQ said in a statement.
In a related business, Abu Dhabi Future Energy Co., also known as Masdar, has agreed with Siemens Energy AG to develop a green hydrogen plant in Masdar, Abu Dhabi, Mubadala said in a statement. Munich-based Siemens Energy is already under construction a hydrogen demonstration plant at Mohammed bin Rashid Al Maktoum Solar Park in neighboring Dubai.
Some Middle Eastern states that have built their wealth on oil are looking to develop hydrogen as a fuel, given a shift among their buyers to less polluting oil alternatives. Saudi Arabia’s energy minister says he wants the kingdom – the world’s largest oil exporter – to become the largest carrier of hydrogen.
Abu Dhabi, like Saudi Arabia, produces natural gas, which it could use to develop what is known as blue hydrogen. It also has ample sun, which can be harnessed to produce a variant called green hydrogen. Abu Dhabi is the capital and largest emirate of the United Arab Emirates.
Adnoc will develop independent blue hydrogen, while cooperating with the two rich funds to produce the green variety, according to ADQ.
Adnoc produces about 300,000 tons of hydrogen annually for its downstream operations and plans to expand production to more than 500,000 tons, according to a statement. It is “well placed to develop its advantageous position as a major owner and producer of natural gas reserves,” Adnoc said.
(Updates throughout with details about the second offer.)