Abu Dhabi’s ADNOC, Masdar deepen partnership with BP

Abu Dhabi National Oil Company (ADNOC), BP and Masdar have signed a partnership agreement to progress their new energy partnership through the development of clean hydrogen and technology hubs.

ADNOC and BP have advanced to the design phase of the H2Teesside low-carbon hydrogen project in the UK, while Masdar and BP also signed a MoU to explore potential collaboration on the HyGreen Teesside green hydrogen project in the UK’s Teesside industrial cluster, powered by offshore wind.

Our partnership with @bp_plc and @Masdar continues to move forward. Together, we’re investing in clean hydrogen and exploring new avenues in new energy, including sustainable aviation fuels.

— ADNOC Group (@AdnocGroup) May 24, 2022

In the UAE, ADNOC and BP are to conduct a joint feasibility study for a low-carbon hydrogen project in Abu Dhabi. The two parties are expected to capitalise on Abu Dhabi’s existing industrial infrastructure, gas resources, and proximity to future clean hydrogen demand centers to potentially develop a low-carbon hydrogen facility, a statement said.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC managing director and group CEO, and Masdar Chairman, said: “ADNOC and Masdar’s deepened partnership with bp is a testament to the UAE and UK’s longstanding track record of bilateral partnership in sustainability as well as the UAE’s intent to play a leading role in the fast-growing clean hydrogen economy both domestically and internationally. To that end, we welcome the opportunity to collaborate with bp in both the UAE and UK, laying the groundwork for deeper commercial partnership in the area of new energies and clean technologies.

“In the UK, our role in Teesside will represent ADNOC’s first investment into the UK and help to accelerate innovation in decarbonization of energy in industrial sectors. Similarly, the partners’ collaboration in Abu Dhabi is expected to further position the UAE as a leader in low-carbon energies and technology-driven industrial growth.”

In addition, the three companies have welcomed Abu Dhabi’s Tadweer and Etihad Airways to the new energy partnership. ADNOC, BP and Masdar also agreed to explore production of sustainable aviation fuels in the UAE using solar-to-green hydrogen and municipal waste gasification.

Tony Douglas, group chief executive officer, Etihad Aviation Group, added: “Although aviation is considered one of the harder sectors to decarbonise, meaningful progress can be made if a basket of measures – including both SAF and LCAF – are pursued. We believe that a balanced approach is required, exploring future opportunities for SAF while improving the carbon intensity of hydrocarbon-based aviation fuels.”

#ADNOC MD & GCEO H.E. Dr. Sultan Al Jaber and bp CEO Bernard Looney share their thoughts on today’s announcements, as the new energy partnership between ADNOC, @bp_plc and @Masdar moves to the next stage.

— ADNOC Group (@AdnocGroup) May 24, 2022

The new energy partnership builds upon the agreements signed during the September 2021 visit to the UK by UAE President Sheikh Mohammed bin Zayed Al Nahyan.

Bernard Looney, BP’s chief executive officer, said: “ADNOC and Masdar’s involvement reinforce the world-leading role that Teesside and the UK more widely can play in leading the development of low carbon hydrogen for low carbon economies. From supply chains to skills, Teesside and bp are ready to deliver. Our partnership with ADNOC and Masdar stretches internationally and will be able to help decarbonise some of the most hard-to-abate sectors in the world – like industrial manufacturing, power and aviation – in a sustainable way.”

“Today’s announcements will strengthen the strategic partnership between Masdar, ADNOC and bp and continue to drive clean energy innovation for both the UAE and the UK. Masdar has been a long-standing investor in the UK’s renewable energy sector, and we will leverage our expertise in offshore wind and sustainable aviation fuels to support both nations’ energy transition while solidifying the UAE’s leadership position in the emerging green hydrogen economy,” said Masdar CEO, Mohamed Jameel Al Ramahi.

ADNOC and other entities have undertaken several initiatives in a push towards renewable energy. It signed an MoU with Mubadala and ADQ in January last year to establish the Abu Dhabi Hydrogen Alliance.

Read: Mubadala, ADNOC and ADQ form alliance to grow green hydrogen economy in the UAE

ADNOC also joined over 100 companies from around the world in the global Hydrogen Council in 2021. 

Read: Abu Dhabi’s ADNOC joins global Hydrogen Council 

Meanwhile, earlier this year, Masdar, Abu Dhabi’s renewable energy company, and ENGIE, a low-carbon energy and services player, have signed a collaboration agreement with Fertiglobe to co-develop a green hydrogen facility in the UAE.

Read: Abu Dhabi’s Masdar, ENGIE sign agreement with Fertiglobe to develop green hydrogen