Adnoc will acquire a 35 per cent equity stake in oil major ExxonMobil’s proposed blue hydrogen and ammonia production facility in Texas as the Abu Dhabi-based energy company boosts its presence in the US.
The project, set to be the “world’s largest” of its kind, will be capable of producing up to 1 billion cubic feet daily of blue hydrogen, with about 98 per cent of carbon dioxide removed, and more than 1 million tonnes of low-carbon ammonia per year, Adnoc said in a statement on Wednesday. The final investment decision is projected for 2025, with operations expected to begin in 2029.
"This strategic investment is a significant step for Adnoc as we grow our portfolio of lower-carbon energy sources and deliver on our international growth strategy,” said Dr Sultan Al Jaber, Adnoc managing director and group chief executive.
Blue hydrogen is primarily produced from natural gas through a process known as steam reforming, which involves combining natural gas with steam. This process generates hydrogen as the main product, while carbon dioxide is produced as a by-product.
The plant, which will be in Baytown, will have access to “cheap” gas from the US Gulf Coast via pipelines, Michele Fiorentino, executive vice president of low carbon solutions at Adnoc, told The National on Wednesday.
Mr Fiorentino said that about half of the facility's production will be utilised by ExxonMobil for its operations as "captive demand". While part of the remaining half will be sold in the Gulf Coast, where there is a well-established hydrogen network, about one million tonnes of ammonia will be shipped to either European or north-east Asian markets, he added. Discussions are under way with possible buyers, he said.
“A big off-taker is going to be North-east Asia – Japan and South Korea are keen to decarbonise their energy systems, and so they're looking at ammonia … to reduce the carbon footprint of their coal-fired [power] plants,” Mr Fiorentino said.
Ammonia co-firing involves substituting part of the coal used in power plants with ammonia and burning the low-carbon fuel with coal to produce electricity.
“There are obligations on the overall refining system in Europe to reduce their carbon footprint and other hard-to-abate sectors are looking at hydrogen as a way to decarbonise,” Mr Fiorentino said.
Adnoc’s latest agreement follows its acquisition of a 11.7 per cent stake in phase one of NextDecade’s Rio Grande liquefied natural gas export project in Texas.
“This is the second [deal] in a relatively short period of time. The US remains an interesting geography from our perspective, whether it's on the gas side or on the low carbon solution side,” Mr Fiorentino said. “We remain very receptive to investment opportunities that really make financial sense in the region.”
Adnoc is making substantial investments in carbon capture and establishing a hydrogen supply chain, which is seen as crucial for abating emissions in industries such as shipping and steel manufacturing.
The company is building a one million tonnes-per-year low-carbon ammonia production plant at the Ta'ziz industrial ecosystem and chemicals hub in Ruwais, Abu Dhabi.
Adnoc has also shipped several demonstration cargoes of low-carbon ammonia to customers in Asia and Germany. In December, the company teamed up with Japan’s Mitsubishi Heavy Industries to explore potential opportunities in green hydrogen and ammonia value chains.
The companies will also study the deployment of carbon management technology, the state-run energy company said at the time.
The market for clean hydrogen is expected to top the value of the liquefied natural gas trade by 2030 and grow to $1.4 trillion per year by 2050, Deloitte said in a report last year.
Green hydrogen, which is produced using renewable energy such as solar and wind, is projected to help drive the bulk of the growth, the report said.
Tales of Yusuf Tadros
Adel Esmat (translated by Mandy McClure)
Hoopoe
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Killing of Qassem Suleimani
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
COMPANY PROFILE
Founders: Sebastian Stefan, Sebastian Morar and Claudia Pacurar
Based: Dubai, UAE
Founded: 2014
Number of employees: 36
Sector: Logistics
Raised: $2.5 million
Investors: DP World, Prime Venture Partners and family offices in Saudi Arabia and the UAE
RESULT
Aston Villa 1
Samatta (41')
Manchester City 2
Aguero (20')
Rodri (30')
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Juliet, Naked
Dir: Jesse Peretz
Starring: Chris O'Dowd, Rose Byrne, Ethan Hawke
Two stars
More on animal trafficking
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
About Housecall
Date started: July 2020
Founders: Omar and Humaid Alzaabi
Based: Abu Dhabi
Sector: HealthTech
# of staff: 10
Funding to date: Self-funded
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
