Abu Dhabi’s Masdar Signs Green H2 Deals with Engie, TotalEnergies

Hydrogen Project HyNCREASE in Germany Qualifies for European Grant

Abu Dhabi renewable energy group Masdar has signed a deal to develop a green hydrogen production plant in the United Arab Emirates 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 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 N.V. and the state-owned Abu Dhabi National Oil Company (ADNOC) – will explore the co-development of an up to 200 megawatt (MW) 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, amid a deepening economic rivalry between them.

Last year, at COP26, the UAE revealed its Hydrogen Leadership Roadmap, which aims to support domestic decarbonisation through hydrogen whilst also becoming a key global export hub of the clean energy carrier by targeting a 25% market share by 2030.

Saudi Arabia is also exploring ways to become the top supplier of hydrogen in the world and has clean hydrogen production targets of 2.9 million tons per year by 2030 and 4 million tons per year by 2035.

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.