Masdar, ENGIE signs collaboration pact with Fertiglobe to co-develop green H2
Masdar and ENGIE have announced that they have signed a collaboration agreement with Fertiglobe, the strategic partnership between OCI N.V. and the Abu Dhabi National Oil Company (ADNOC).
Under the agreement, the companies will look to co-develop a globally cost-competitive green hydrogen facility in the UAE, with a capacity of as much as 200 megawatts (MW), to support the production of green ammonia.
The collaboration agreement was signed by Frederic Claux, Managing Director, Thermal and Supply AMEA, ENGIE, Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe, and Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, at a ceremony on the side-lines of Abu Dhabi Sustainability Week (ADSW) 2022, taking place in the UAE capital.
Frederic Claux, Managing Director, Thermal and Supply AMEA, ENGIE, said, "The production of green hydrogen in the UAE will be a significant milestone in its green transition, helping the country achieve its ambitious net-zero targets for 2050. Moreover, by supporting the development of green hydrogen projects across the value chain, together with Masdar and Fertiglobe, we will aid the creation of local jobs and give the UAE a competitive edge in the fast-growing hydrogen economy. This will enable some of the most intensive carbon producing industries – in particular, transportation and mobility, industry and agriculture – to go carbon neutral."
Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe said, "This new partnership with Masdar and ENGIE represents a great opportunity for Fertiglobe and the UAE to play a crucial role in the global energy transition and fits well in the UAE's vision of a diversified and sustainable future. Abu Dhabi is an ideal location to produce green hydrogen given the country's commitment to a low carbon future, its unique renewables profile, and its strategic geographic location. The project marks another milestone for Fertiglobe's green ammonia portfolio and follows the announcement last month of our new 100MW electrolyzer in Egypt. Ammonia is the dominant energy carrier for hydrogen. With green hydrogen seen as essential to support the decarbonization of industry, food, transport, and energy, there is a huge opportunity for green ammonia to deliver green hydrogen all over the world to fuel the clean economy and meet the growing demand for renewable sources of clean energy."
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said, "This project will play a vital role in the development of the UAE's green hydrogen economy, and represents the first concrete action taken by Masdar and ENGIE following the announcement last month of our strategic alliance. By working with innovative companies like Fertiglobe, we aim to support the UAE's leadership in green hydrogen, and work toward achieving the nation's net-zero emissions targets."
The three companies will study the development, design, financing, procurement, construction, operation, and maintenance of an industrial-scale and globally cost-competitive green hydrogen facility in Al Ruwais, Abu Dhabi, to be installed near Fertiglobe's ammonia production plants, with a potential capacity up to 200 MW. The facility is targeted to be operational in 2025, with Fertiglobe the sole long-term off-taker.
The strategic alliance aims to capture synergies and complementarities between the partners to establish an 'early mover' position in the UAE's hydrogen market. By leveraging existing infrastructure, the companies will initially target local supply, to expand capacity to create a giga-scale green hydrogen hub for the GCC, with the potential to export to other markets. The strategic alliance will also explore opportunities to develop projects in other geographies.
