Abu Dhabi Department of Energy (DoE), the Abu Dhabi Investment Office (ADIO) and Abu Dhabi Future Energy Company PJSC – Masdar, have signed a trilateral agreement to accelerate the hydrogen economy in Abu Dhabi and position the UAE as a global leader for the production and export of low carbon hydrogen.
The agreement was signed during COP28 in Dubai by His Excellency Eng. Ahmed Mohamed Al Rumaithi, Undersecretary of the Abu Dhabi Department of Energy (DoE), Badr Al-Olama, Director General of ADIO, and Mohamed Jameel Al Ramahi, Masdar Chief Executive Officer.
This announcement follows Abu Dhabi’s recently launched Low Carbon Hydrogen Policy, which creates a framework to accelerate production on a much larger scale. By connecting production centres, offtakers, and H2 storage across the UAE, the collaboration provides a landmark opportunity to deploy shared hydrogen infrastructure that generates economies of scale and creates a world-class production and export hub for clean hydrogen and its derivatives, enabling further decarbonisation of hard-to-abate sectors.
It is expected that the strategic trilateral collaboration will expand the green hydrogen sector in Abu Dhabi by providing the market conditions to attract international investment and co-development, further diversifying the UAE economy and generating new knowledge-driven jobs and opportunities.
His Excellency Eng. Ahmed Mohamed Al Rumaithi, Undersecretary of the Abu Dhabi Department of Energy (DoE), said: "In affirming our commitment to the advancement of a sustainable energy future, I emphasise that sustainable hydrogen is integral to the Abu Dhabi energy transition, playing a vital role in realising the UAE's net zero strategy. Low carbon hydrogen, a promising technology, stands as a cornerstone for the development of a sustainable industrial sector in the emirates, fostering economic growth, adding substantial value and generating quality jobs. The Department of Energy's policy is pivotal to shaping the course of hydrogen development, contributing significantly to the economic abundance and prosperity of Abu Dhabi.”
Badr Al-Olama, Director General of ADIO, said: “The Abu Dhabi ecosystem is working in unison to support the global transition to a net zero future. This collaboration between DoE, Masdar and ADIO will be a catalyst for the UAE to become one of the world’s foremost producers of clean hydrogen, marking a significant step in the development of sustainable energy in the UAE and globally.”
Mohamed Jameel Al Ramahi, Masdar Chief Executive Officer, said: “This important stride forward in Abu Dhabi’s green hydrogen funding and investment initiatives is bringing to life the UAE’s National Hydrogen Strategy, as well as positioning Abu Dhabi as the leading global hub for the production and export of low carbon hydrogen at scale. Masdar is playing its part through the development and deployment of green hydrogen, targeting 1 million tonnes per year.”
The UAE’s National Hydrogen Strategy aims to scale up local hydrogen production to 1.4 million tonnes per annum by 2031 and 15 million tonnes per annum by 2050. This is seen as a crucial step towards meeting the country’s ambition of achieving net zero emissions by 2050.
Masdar has been a pioneer in exploring hydrogen production since 2008 and is developing and investing in strategic projects across the hydrogen value chain. Of Masdar’s 1 million tonnes capacity, half will be produced in Abu Dhabi, with local demand projected at around 200,000 tonnes per year while the remaining volume will be exported.
