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

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.

The three companies will study the development, design, financing, procurement, construction, operation, and maintenance of an industrial-scale plant in Al Ruwais, Abu Dhabi, to be installed near Fertiglobe’s ammonia production plants, with a potential capacity up to 200MW.

The facility is targeted to be operational in 2025, with Fertiglobe – the sole long term off-taker. Fertiglobe, the largest producers of nitrogen fertilisers and ammonia in the MENA region with a combined production capacity of 6.7 million tons of urea and merchant ammonia, will use the green hydrogen to produce green ammonia, official news agency WAM reported.

#Masdar and #ENGIE have signed a collaboration agreement with #Fertiglobe, the strategic partnership between OCI N.V. and the Abu Dhabi National Oil Company (ADNOC), and the world’s largest seaborne exporter of urea and merchant ammonia. pic.twitter.com/JZyxrjAhQI

— Masdar (@Masdar) January 19, 2022

Green ammonia, produced from renewable energy sources such as solar and wind instead of natural gas, is an ideal carrier to store and transport hydrogen, and can help decarbonise sectors which together account for 90 per cent of current global greenhouse gas (GHG) emissions, the statement added. Green ammonia is also an important alternative fuel on its own.

In December, Masdar and ENGIE announced the formation of a strategic alliance to explore the co-development of a UAE-based green hydrogen hub. The two companies sought to develop projects with a capacity of at least 2 gigawatts (GW) by 2030, with a total regional investment of $5bn. By leveraging existing infrastructure, the companies will initially target local supply, with the aim of expanding capacity to create a green hydrogen hub for the GCC, with the potential to export to other markets.

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, added: “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 decarbonisation 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 growing demand for renewable sources of clean energy.”

TotalEnergies is also contributing to a Masdar-led initiative focused on green hydrogen to produce sustainable aviation fuel (SAF), the Abu Dhabi based company announced recently.

#Masdar is pleased to announce that @TotalEnergies is adding its expertise in the energy sector to a Masdar-led initiative focused on green hydrogen to produce sustainable aviation fuel (SAF).#WeAreCommitted#ForASustainableFuture pic.twitter.com/W80h9PIEDU

— Masdar (@Masdar) January 19, 2022

Last year, TA’ZIZ and Fertiglobe signed an agreement for the latter to join the blue ammonia production project at TA’ZIZ in Ruwais, Abu Dhabi.

Read: Fertiglobe joins ADNOC’s blue ammonia facility in Abu Dhabi’s Ruwais