UAE-based National Petroleum Construction Company signed an agreement with French engineering technology company Technip Energies to set up a joint venture that will focus on energy transition.
The agreement was signed on Tuesday on the sidelines of President Sheikh Mohamed's visit to Paris, during which the UAE and France also signed a comprehensive strategic energy partnership.
Based in Abu Dhabi, the new joint venture, NT Energies, will support energy transition in the UAE and the wider Mena region by providing value-added services in the blue and green hydrogen sector, related decarbonisation projects and the capture of carbon dioxide, said NPCC, a subsidiary of the National Marine Dredging Company.
NT Energies will also focus on industrial projects in the fields of waste-to-energy, biorefining, biochemistry, as well as other themes related to the energy transition.
The move will support “energy transition and decarbonisation in line with the UAE’s strategy to take positive and effective climate change actions to ensure a decarbonised future”, said Yasser Zaghloul, group chief executive at the National Marine Dredging Company.
“This agreement with Technip Energies opens up new opportunities for sharing expertise in the field of sustainable energy and aligns with our expansion plans and ongoing search for new ways to strengthen global partnerships in line with our strategic vision of continuous growth.”
The UAE is stepping up efforts to hit its target to reach net zero emissions by 2050 through a wide-ranging green strategy focused on a shift to renewable energy and the use of new technology, which will help to reduce carbon emission levels.
The country plans to invest Dh600 billion ($164bn) in clean and renewable energy sources over the next three decades to achieve its ambitions.
A big focus is on hydrogen. The UAE aims to capture about 25 per cent of the global hydrogen market share and is in discussions with many countries to export it, Minister of Energy and Infrastructure Suhail Al Mazrouei said earlier this year.
Last month, the Abu Dhabi Department of Energy also said that it was developing a hydrogen policy with new regulations and standards, and aimed to become a “leader in the international hydrogen market” as the demand for the clean fuel grows worldwide.
“The new joint venture aims to promote a culture of sustainability and supports the best environmental practices in light of our government's commitment to moving toward clean energy sources,” said NPCC chief executive Ahmed Al Dhaheri.
The venture will also provide onshore and offshore oil and gasfield services, building and energy efficiency services, oil tank installations and repairs, as well as the installation, maintenance and manufacture of alternative energy equipment.
It will also offer oil and gas facilities consultancy services and engineering consultations on alternative energy and research.
“We are confident that NT Energies will be able to rapidly bring to life the energy transition infrastructures that the UAE and Mena region require, both domestically and for exports, particularly in the areas of power to gas, blue or green hydrogen and ammonia, [carbon dioxide] management, sustainable fuels and circularity,” said Technip Energies chief executive Arnaud Pieton.
“Our collaboration will help to further develop local competencies, increase in-country value and co-operate to break down barriers to engineer a sustainable future.”
Under the strategic energy partnership signed between the UAE and France, the two countries will focus on enhanced energy security, affordability and decarbonisation, and progressive climate action before Cop28, which is set to take place in the UAE in 2023, state news agency Wam reported.
During Sheikh Mohamed's visit, Abu Dhabi's Adnoc also signed a strategic partnership agreement with TotalEnergies.