The UAE’s Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi National Energy Company (Taqa) have signed an agreement to create a clean energy powerhouse with a total generating capacity of 30 Gigawatts (GW) of renewable energy by 2030.

The new venture solidifies the UAE’s global position in energy transition, paving the way towards the nation’s ‘Net-Zero by 2050 Strategic Initiative’.

The new strategic partnership will focus on domestic and international renewable energy and waste-to-energy projects as well as the production, processing and storage of green hydrogen and ancillary activities.

Adnoc produces over 300,000 mt/year of blue hydrogen

It will leverage Adnoc’s energy and hydrogen capabilities and Taqa’s renewables expertise for local and international growth.

The agreement was signed by Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO, and Mohamed Hassan Alsuwaidi, Chairman of Taqa at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec).

Dr Al Jaber said: “The strategic partnership between two Abu Dhabi energy giants future-proofs Adnoc’s business model, creating compelling business and commercial opportunities, as we fully embrace the energy transition. This innovative and collaborative venture is a bold new initiative, as it combines both companies’ respective areas of expertise and paves the way for our viable entry into the clean energy space.”

He said the platform will enable Adnoc to capitalise on the many renewable energy and hydrogen opportunities, both locally and globally.

Dr Al Jaber also called on other partners to join this promising new venture on its exciting journey. 

“As the UAE looks ahead to hosting COP 28 in 2023, our nation pledges an inclusive energy ecosystem, enabling sustainable future economic growth, for the benefit of Abu Dhabi and the UAE.”

Alsuwaidi said: “This partnership between Taqa and Adnoc will be a powerful catalyst to unlock significant potential for accelerating the green hydrogen market and rapidly expanding renewable energy. Taqa is supporting Abu Dhabi’s aim to be a green hydrogen hub using our expertise in low-cost solar PV and desalinated water: two critical elements for green hydrogen.”

Moelis and Company is financial advisor to Adnoc, with Citi to Taqa.

According to S&P Global Platts report, the UAE was the first Middle Eastern country to commit to a net-zero emissions target, with AED 600 billion ($163 billion) in planned renewables investments.

Adnoc, which aims to decrease its greenhouse-gas emissions intensity by 25 per cent by 2030, aims to use nuclear and solar energy to completely power its operations to bolster its claims of pumping some of the world's least carbon-intensive crudes.

The UAE is targeting a 25 per cent global market share of low-carbon hydrogen by 2030 with the launch of its “hydrogen leadership roadmap” at the UN Climate Change Conference.

The roadmap sets out support for domestic, low-carbon industries and aims to establish the country as a leading hydrogen exporter, the UAE state news agency said.

The UAE already has seven hydrogen projects underway, and is targeting a large share of key export markets, including Japan, South Korea, Germany and India, as well as other markets it identifies as being of “high potential” in Europe and East Asia.

Adnoc produces over 300,000 mt/year of blue hydrogen, and plans to increase this to 500,000 mt/year.

The UAE offers several strategic advantages that provide a robust platform to enable this partnership, including being home to some of the largest and lowest-cost solar plants in the world.

This partnership will also benefit from the availability of low-cost renewable energy in the UAE and the country’s proximity to significant future demand centers for hydrogen and its carrier fuels.

In October, Sheikh Khaled launched a new clean energy partnership between Adnoc and Emirates Water and Electricity Company (EWEC), which will see up to 100 per cent of the Adnoc’s grid power supplied by EWEC’s nuclear and solar clean energy sources.