Abu Dhabi companies Adnoc, XRG and Masdar on Friday announced agreements that could potentially create more than €5 billion of investment in Germany’s energy and industrial sectors.
The deals were signed during President Sheikh Mohamed's state visit to Germany, which saw the announcement of €40 billion ($46.47 billion) being invested by the UAE in Germany, as part of a long-term commitment to Europe's biggest economy.
The agreements are with German firms RWE, Securing Energy for Europe (SEFE), MB Energy, Covestro, Siemens Energy, Siemens Industrial and Bosch Middle East and involve liquefied natural gas (LNG), gas, renewable energy, advanced materials and technology.
“The UAE and Germany are building on decades of trusted partnership to advance economic growth and shared prosperity for the long-term,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and managing director and group chief executive of Adnoc.
“The additional €40 billion of intended long-term investments announced this week, together with the agreements Adnoc, XRG and Masdar signed today with our German partners, build on our investments across Germany’s energy and industrial landscape and mark another step forward in greater co-operation that will create new opportunities for both countries,” he added, in a statement released on Friday by Adnoc.
The agreements were announced along with the launch of the UAE-Germany Investment Council, which is expected to bring government, capital and companies together to “identify commercially viable opportunities, remove barriers to investment and accelerate growth in priority sectors”.
Adnoc and German energy firm RWE signed an agreement to deliver LNG into Germany and Europe as well as to Asian customers, supplied by Adnoc and XRG, the Abu Dhabi firm's international energy investment unit, expected to commence in the early part of the next decade.
Abu Dhabi's Ta'ziz, a joint venture between Adnoc and Abu Dhabi's investment and holding company ADQ, and German chemicals company Covestro signed a letter of intent laying out the next steps towards creating a facility in Ruwais, with a view to making a final investment decision ahead of production potentially beginning after 2030.
Adnoc and XRG agreed with Germany's SEFE to “assess potential collaboration spanning gas supply, infrastructure, logistics and portfolio optimisation, with the aim of supporting long-term energy security and market development in Europe”.
Abu Dhabi firm Fertiglobe, which exports and manufactures nitrogen fertilisers and low-carbon ammonia, reached an agreement with Covestro and Germany's MB Energy to “explore collaboration supporting the development of low-carbon ammonia supply chains into Germany”.
In the renewables sector, Masdar and RWE signed an agreement to consider joint participation in future German offshore wind auctions, while Masdar and German Luxcara signed a deal to establish “a strategic partnership to explore potential joint investments in offshore wind and battery storage projects in Germany and wider Europe”.
Adnoc also signed agreements with Bosch Middle East, Siemens Energy and Siemens Industrial to explore collaboration in the fields of advanced technology and artificial intelligence.
