The Abu Dhabi Department of Energy (DoE) has signed a preliminary agreement with Colombia's Ministry of Mines and Energy to boost co-operation in the energy sector.
As part of the five-year agreement, the two entities will explore opportunities to team up in financing projects related to the production, use and storage of hydrogen, as well as large-scale, non-conventional renewable energy projects, the department said on Thursday.
“The Abu Dhabi Department of Energy is committed to enhancing co-operation and building partnerships with relevant authorities in countries around the world,” DoE undersecretary Ahmed Al Rumaithi said.
“We believe partnership is a powerful approach to achieving our objectives, developing the energy sector, enhancing energy efficiency and meeting the needs and requirements of the local market for reliable and sustainable energy and water supplies now and in the future.”
Hydrogen is a key focus for the UAE as part of its energy diversification efforts, with the country aiming to capture about 25 per cent of the global market.
It is in discussions with many countries to export it, Suhail Al Mazrouei, Minister of Energy and Infrastructure, said this year.
Abu Dhabi is also focusing on developing a new hydrogen policy with regulations and standards as it seeks to become a “leader in the international hydrogen market”.
Last year, Adnoc, Mubadala and industrial holding company ADQ signed a preliminary agreement to form a hydrogen alliance focusing on low-carbon green and blue hydrogen.
Blue hydrogen is extracted from natural gas, through a process called methane reformation, which relies on carbon capture and storage, while green hydrogen is produced entirely from renewable sources.
Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities, and is expected to generate $2.5tn in direct revenue by 2050 as its production increases sixfold.
As part of the agreement, Abu Dhabi and Colombia will also focus on the promotion of sustainable transport from clean energy sources and technology development related to advanced energy measurement and monitoring systems.
It will also focus on energy service access, including renewable energy solutions, and the promotion of foreign investment in the sector.
The two entities will explore opportunities to collaborate in capability development and the sharing of knowledge and information, as well as support joint projects and initiatives in the energy sector.
They will also seek to promote the development of bilateral scientific, technical, technological, administrative and commercial co-operation in the sector.