UAE and Germany sign major energy deal to supply gas

Key agreement witnessed by President Sheikh Mohamed and German Chancellor, Olaf Scholz

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  President Sheikh Mohamed shakes hands with German Chancellor Olaf Scholz, at Al Shati Palace in Abu Dhabi. Photo: UAE Presidential Court

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  Sheikh Mohamed and Mr Scholz, witness the signing of a New Energy Security and Industry Accelerator agreement, by Dr Sultan Al Jaber, Minister of Industry and Advanced Technology Group, and Dr Franziska Brantner, Parliamentary State Secretary for Economic Affairs and Climate of Germany, at Al Shati Palace. Photo: UAE Presidential Court

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  Sheikh Mohamed and Olaf Scholz pose for a photograph with the German Economic delegation, after a meeting at Al Shati Palace. Photo: UAE Presidential Court

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  President Sheikh Mohamed and German Chancellor Olaf Scholz held talks on Sunday as a key energy partnership was agreed by the nations. All photos: Sheikh Mohamed bin Zayed/Twitter

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  Sheikh Mohamed and Mr Sholz witnessed the signing of the Energy Security and Industry Accelerator Agreement.

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  The energy deal was signed by Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and the UAE's climate change envoy, and Dr Franziska Brantner, Germany's Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Climate Action.

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  Sheikh Mohamed spoke of the close friendship between the UAE and Germany following the signing of the energy partnership.

The UAE and Germany signed a "landmark agreement" on Sunday aimed at accelerating joint efforts to boost energy security, decarbonisation and combat climate change.

The major deal was struck in the presence of President Sheikh Mohamed and German Chancellor Olaf Scholz, who is currently visiting the Emirates.

The new Energy Security and Industry Accelerator Agreement was signed by Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and the UAE's climate change envoy, and Dr Franziska Brantner, Germany's Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Climate Action.

Sheikh Mohamed told of the "close friendship and strategic partnership" the two countries enjoy in a post on Twitter after the deal was finalised.

Nations build on close ties

Under the international partnership, Abu Dhabi National Oil Company will supply German energy company RWE AG with liquefied natural gas cargo towards the end of the year. This will be used in Germany’s floating LNG import terminal at Brunsbuttel.

Adnoc has also reserved a number of other LNG cargos for German companies in 2023.

Adnoc has entered into a series of agreements with German firms for demonstration cargos of low-carbon ammonia, a carrier fuel for hydrogen that can play a critical role in supporting decarbonisation.

It was also announced that Adnoc had completed the UAE's first direct diesel delivery to Germany this month and has agreed terms with Wilhelm Hoyer GmbH & Co. KG (Hoyer) to supply up to 250,000 tonnes of diesel per month next year.

The UAE and other countries across the Middle East and North Africa region are pursuing plans to incorporate hydrogen into their energy mix and tap into the clean fuel for different industrial applications.

Both countries expect to work in tandem on further opportunities to boost growth in the growing hydrogen sector.

The alliance will also involve leading UAE renewable energy firm, Masdar, exploring opportunities in the offshore wind markets in the North Sea and the Baltic Sea in Germany. This will be with the aim of generating up to 10GW of renewable energy production capacity by 2030.

"This landmark new agreement reinforces the rapidly growing energy partnership between the UAE and Germany," Dr Al Jaber said.

"As we embrace the energy transition, Adnoc is fully committed to accelerate and invest in projects of energy security, decarbonisation and climate action as we continue to be a responsible and reliable provider and trusted exporter of low-carbon energy."

Mr Scholz said: "I welcome the signing of the joint declaration of intent on the "Energy Security and Industry Accelerator - Esia.

"Through Esia, we enable the swift implementation of strategic lighthouse projects on the focus areas of renewable energies, hydrogen, LNG and climate action."