Mubadala Investment Company and Siemens Energy signed a preliminary agreement to explore investment and commercial opportunities in clean energy and green hydrogen, establishing Abu Dhabi as a global hub of low-carbon fuels.
The pact between Mubadala, Abu Dhabi’s strategic investment arm, and Germany’s Siemens Energy, one of the global leaders in energy technology, will also channel investment into the development of advanced technology and the manufacturing of equipment and synthetic fuel production, Mubadala said in a statement on Sunday.
The companies will initially focus on boosting Abu Dhabi’s green hydrogen capabilities, as the UAE continues to pursue ambitious targets of reducing its carbon footprint and developing its hydrogen economy. The partners will later look to expand into international markets, it said.
"Mubadala is strongly committed to the development of the UAE’s hydrogen economy, and we are pleased to be extending our relationship with Siemens Energy in this important emerging energy sector," Musabbeh Al Kaabi, chief executive of UAE Investments at Mubadala, said.
Through the partnership, "we expect to be able to leverage Abu Dhabi’s strong foundations for the production and sale of green hydrogen", he said.
Mubadala and Siemens Energy are looking to build a "strong business case and attract investment for the development of new facilities, and establish Abu Dhabi as a reliable supplier of green hydrogen to global markets", he added.
The UAE, the second-biggest Arab economy has pledged to reduce its carbon emissions by a quarter by 2030 and has already laid out clean energy and carbon emissions commitments. Abu Dhabi National Oil Company is also looking to establish a "hydrogen ecosystem" that will allow it to meet growing global demand for the lighter and cleaner gas that is emerging as an alternative to fossil fuels.
Clean hydrogen can cut the hydrocarbons industry’s greenhouse gas emissions by 34 per cent, according to BloombergNEF. The growth of hydrogen can help develop a €120 billion ($142.3bn) industry in Europe by 2050, according to Aurora Energy Research.
McKinsey estimates that the development of a hydrogen economy could generate $140bn in annual revenue by 2030 and help support 700,000 jobs in the US alone.
Mubadala and Siemens Energy have a longstanding relationship. Together with Masdar and other energy players in the Mubadala group, the two companies will use renewable energy to produce green hydrogen and synthetic fuels that will provide clean and transportable energy to "fuel new hydrogen-based ecosystems that are supplied from the UAE".
The two partners also plan to establish an Abu Dhabi-based "world-class player in the synthetic fuels sector" and jointly develop technologies to bring down the cost of green hydrogen and synthetic fuels production, Mubadala said.
The partnership underscores the UAE’s "commitment towards developing a sustainable, green hydrogen economy", Dietmar Siersdorfer, managing director of Siemens Energy Middle East, said.
"We look forward to advancing and leveraging the many applications of green hydrogen, in partnership with Mubadala and the other key stakeholders throughout the hydrogen value chain, for the benefit of the UAE and the world."
The partnership is one of three hydrogen-related agreement being signed during to Abu Dhabi Sustainability Week, starting from Tuesday in the emirate. This agreement is part of the UAE’s overarching framework for the development of its hydrogen economy.
Mubadala said the first initiative under its deal with Siemens and the broader Abu Dhabi Hydrogen Alliance will be "the consideration of a demonstrator plant located at Masdar City”.
Earlier this year, Mubadala joined the investor group of the Hydrogen Council, reinforcing the company’s commitment to the emerging energy sector, according to the statement.
.@Mubadala, @AdnocGroup and @ADQ_Official, have signed an MoU to establish the ‘Abu Dhabi Hydrogen Alliance’, to establish Abu Dhabi as a trusted exporter hydrogen to emerging international markets, and build a substantial green hydrogen economy in the UAE. pic.twitter.com/dz6wqe1fVL
— مكتب أبوظبي الإعلامي (@admediaoffice) January 17, 2021
