Mubadala Petroleum and Italian energy company Eni have signed an agreement to identify opportunities in energy transition, as the UAE seeks to accelerate decarbonisation across sectors.
Both sides will explore opportunities in the areas of hydrogen, carbon capture utilisation and storage in the Middle East, North Africa, South East Asia and Europe as well as other regions.
The UAE, Opec's third-largest oil producer, is looking to increase the share of clean energy to 44 per cent by 2050 and plans to invest Dh600 billion by mid-century to expand its renewable energy capacity.
Abu Dhabi, which accounts for a bulk of the UAE's oil production, is also developing more renewable energy projects. The emirate is building the world's largest solar plant at Al Dhafra with a total capacity of 2 gigawatts, as part of the UAE's efforts to increase clean energy capacity.
Mubadala Petroleum is developing a portfolio heavily weighted towards gas, which is seen as a transitional fuel in the Middle East. The company's portfolio accounts for two-thirds of natural gas. Earlier this year, Mubadala Petroleum said it lowered its greenhouse gas emissions by 25 per cent in the last three years.
The UAE is looking to introduce hydrogen into high-emitting sectors such as transportation as it looks to decarbonise its economy.
UAE-based entities such as Mubadala Investment company, Abu Dhabi National Oil Company and holding company ADQ are planning to develop a sustainable, hydrogen-based economy in the country in a bid to decarbonise.
The three state-backed entities formed a hydrogen alliance earlier this year to boost investment in the sector.
Mubadala-owned Masdar is also developing green hydrogen, which is produced from renewable-powered electrolysis. Adnoc, the state oil company, is looking at increasing its current capacity to produce blue hydrogen. The company is currently developing a large plant to produce blue ammonia, which is a more easily transportable form of hydrogen.