UAE to invest $23 billion in low-carbon energy solutions in the next five years

UAE to Invest $23 Billion in Hydrogen and Low-Carbon Energy Solutions

HOUSTON, Texas — The United Arab Emirates will invest $23 billion over five years in next-generation hydrogen and low-carbon energy, such as ammonia, as it aims to capture 5% of the world’s clean hydrogen production by 2030, Abu Dhabi National’s top official said. oil company (ADNOC) told Nikkei.

While continuing to develop oil and natural gas, ADNOC will produce hydrogen and ammonia in the United Arab Emirates and the US state of Texas, according to Musabbeh Al Kaabi, managing director of the company’s low carbon division.

Hydrogen and ammonia are next-generation energy sources because they do not emit greenhouse gases when burned. ADNOC will produce blue hydrogen — which is derived from fossil fuels and has low greenhouse gas emissions in its production, but is not yet developed on a large scale — and green hydrogen derived from renewable energy.

ADNOC will process both types into ammonia, which is easier to transport and export to places like Japan, South Korea and Europe. Global production of low-carbon hydrogen is expected to reach 38 million tons per year by 2030.

“We are very proud of our partnership with the Japanese,” said Al Kaabi, citing work with Japanese companies in the 1960s. “Part of our mandate is to support our customers in Japan and elsewhere to decarbonize.”

The Japanese government plans to promote ammonia imports. “When it comes to low-carbon business, it will require cooperation between producers and consumers,” said Al Kaabi.

He added that the cost of low-carbon energy in Abu Dhabi is relatively cheap, and he expressed confidence in the Japanese government’s support structure.
Separately, the UAE plans to capture and store 10 million tonnes of carbon dioxide per year by 2030. Al Kaabi said the country already operates facilities capable of capturing 800,000 tons per year and has decided to commercialize projects with a total capacity of 3 million tons per year.

While developed countries aim to achieve net-zero emissions by 2050, developing countries are experiencing rapid growth in energy demand, which will lead to continued use of fossil fuels beyond that year. The UAE is balancing a two-pronged strategy of producing fossil fuels while providing low-carbon energy.

According to Al Kaabi, the operation of offshore oil fields will be electrified to reduce greenhouse gas emissions from oil production. There are plans to invest about $4 billion to install undersea power cables to transmit electricity from renewable energy sources and nuclear power plants to oil production facilities.