Siemens helping drive hydrogen in Middle East
18 January 2021
Synthetic fuels part of goal
Siemens Energy has entered a partnership designed to accelerate green hydrogen capabilities in the United Arab Emirates (UAE).
The company said it signed memorandums of understanding (MoU) with Mubadala Investment Co. and Masdar and other partners to help drive UAE’s green hydrogen sector and the production of synthetic fuels. Mubadala Investment is the state-owned investment firm.
The initial focus will be in the capital, Abu Dhabi, and over time it is planned that this will be extended to other international markets.
“Mubadala is strongly committed to the development of the UAE’s hydrogen economy, and we are pleased to be extending our relationship with Siemens Energy in this important emerging energy sector,” said Musabbeh Al Kaabi, CEO of UAE Investments at Mubadala Investment Co. “Through this strategic partnership, we expect to be able to leverage Abu Dhabi’s strong foundations for the production and sale of green hydrogen, prove a strong business case and attract investment for the development of new facilities, and establish Abu Dhabi as a reliable supplier of green hydrogen to emerging global markets.”
Within the partnership the companies will work towards the following goals:
- Utilizing renewable energy to produce green hydrogen and derivatives, including synthetic fuels, providing clean and transportable energy to fuel new hydrogen-based ecosystems that are supplied from the UAE
- Establish Abu Dhabi as a world-class player in green hydrogen and synthetic fuels
- Jointly advance technology and drive down the costs of green hydrogen and synthetic fuels production
- Enable Siemens Energy and Mubadala to access emerging hydrogen markets and create value for both parties
Together with Masdar, one of the world’s leading renewable energy companies, Siemens Energy announced that it is joining forces with the Abu Dhabi Department of Energy, Etihad Airways, German Lufthansa, Marubeni Corporation and Khalifa University on a project that will help pave the way for the development of the UAE’s green hydrogen economy.
The organizations signed an MoU with the intent to establish a photovoltaic (PV) powered electrolyzer facility, to demonstrate state-of-the-art green hydrogen production technology and present sustainable fuel use cases.
The first phase of the demonstration program will focus on the production of green hydrogen for passenger cars and buses in the Masdar City area. In parallel, a kerosene synthesis plant will be built to convert the majority of the green hydrogen into sustainable aviation fuel. In the second phase of the program, the production of decarbonized fuels for the maritime sector will be explored. Through the program, the organizations involved can help to significantly reduce the UAE’s carbon footprint, create domestic demand for sustainable fuels, and establish a local knowledge and industrial base for their production.
“Green hydrogen has the potential to become the foundation fuel for a future clean economy, and will be a game-changer for decarbonization strategies as we look to achieve climate goals and deliver a more sustainable future for all,” said Mohamed Jameel Al Ramahi, CEO, Masdar. “Masdar has been exploring hydrogen production and generation for more than a decade – today we believe the time is right to accelerate investment in this technology.”
“These significant agreements highlight the importance of collaboration with a strong and diverse group of partners across industrial sectors, to drive forward and realize the potential of green hydrogen in decarbonization,” said Armin Schnettler, executive vice president of the New Energy Business at Siemens Energy. “The UAE’s visionary leadership is creating the solid foundations for a successful green hydrogen economy and is the base for a new ecosystem.”