Adnoc has signed a preliminary agreement with the engineering unit of Germany's Thyssenkrupp to create new markets for hydrogen and explore the development of projects for large-scale ammonia cracking.
As part of the deal, signed at Abu Dhabi Sustainability Week, Adnoc and Thyssenkrupp Uhde will work together to develop commercial-scale ammonia cracking plants, which are used to extract hydrogen from ammonia after transportation.
The two companies will also explore opportunities in the clean energy value chain for the supply and shipment of low-carbon or green ammonia from the UAE to large-scale ammonia cracking facilities globally, Adnoc said in a statement on Tuesday.
Abu Dhabi Sustainability Week 2023 — in pictures
“Adnoc's fast-growing hydrogen business is enabled by the UAE’s abundant and competitive energy reserves,” said Musabbeh Al Kaabi, executive director, low carbon solutions and international growth directorate, at Adnoc.
“We are committed to strengthening our position as a reliable supplier of lower carbon-intensive energy, creating new revenue streams and growing the global market for hydrogen.”
Hydrogen, which can be produced using renewable energy and natural gas, is expected to play a key role in the coming years as economies and industries transition to a low-carbon world to mitigate climate change.
Globally, the hydrogen industry is expected to be worth $183 billion this year, up from $129 billion in 2017, according to Fitch Solutions.
French investment bank Natixis estimates that investment in hydrogen will exceed $300 billion by 2030.
The UAE, which is investing heavily in the industry, aims to be among the top 10 hydrogen-producing countries globally, a Ministry of Energy and Infrastructure official said on Monday.
Sharif Al Olama, the Ministry's Undersecretary for Energy and Petroleum Affairs, told Abu Dhabi Sustainability Week that the country had taken “great strides” in developing clean hydrogen technologies to reduce the cost of hydrogen as a sustainable source of energy.
“We in the UAE aim to capture 25 per cent of the low carbon hydrogen key markets and aspire to be one of the top 10 hydrogen-producing countries in the world within this decade,” said Mr Al Olama.
“Global hydrogen demand is seen rising to over 600 million metric tonnes a year by the year 2050, which represents 12 per cent of the total global energy demand.”
Adnoc, which is investing in green hydrogen through Masdar, has expanded its strategic energy partnerships across the hydrogen value chain.
In September last year, it shipped its first-ever demonstration cargo of low-carbon ammonia to Germany.
Ammonia is a carrier of hydrogen and it is much easier to compress and transport.
When shipped, after arriving at its destination, the ammonia needs to be decomposed, or cracked into hydrogen, before use in the energy value chain.
Adnoc has already invested in low-carbon ammonia, whereby the carbon dioxide emitted during production is captured and stored underground.
In May last year, the company announced a 1 million tonnes per year low-carbon ammonia production plant at the Ta'ziz industrial ecosystem and chemicals hub.
Under the latest deal, Adnoc will explore using the ammonia cracking process based on Thyssenkrupp Uhde's reformer technology, which is applied in more than 130 large-scale chemical plants across the world.
“Countries in Europe, along with many others, are looking to clean hydrogen imports to decarbonise industry and society,” Cord Landsmann, chief executive of Thyssenkrupp Uhde, said.
“Clean ammonia is the best way to transport hydrogen by ship, and together with Adnoc, we will deliver the last piece of the puzzle for global clean hydrogen trade at large scale.”
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UAE currency: the story behind the money in your pockets
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Mane points for safe home colouring
- Natural and grey hair takes colour differently than chemically treated hair
- Taking hair from a dark to a light colour should involve a slow transition through warmer stages of colour
- When choosing a colour (especially a lighter tone), allow for a natural lift of warmth
- Most modern hair colours are technique-based, in that they require a confident hand and taught skills
- If you decide to be brave and go for it, seek professional advice and use a semi-permanent colour
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Killing of Qassem Suleimani