Masdar and Engie have signed a collaboration agreement with ammonia company Fertiglobe to develop a green hydrogen project in the UAE.
The partners aim to co-develop a globally cost-competitive green hydrogen facility in the UAE, with a capacity of up to 200MW, to support the production of green ammonia.
The three companies will study the development, design, financing, procurement, construction, operation, and maintenance of an industrial-scale and globally cost-competitive green hydrogen facility in Al Ruwais, Abu Dhabi, to be installed near Fertiglobe’s ammonia production plants.
The facility is targeted to be operational in 2025, with Fertiglobe the sole long term offtaker.
The collaboration agreement was signed by Frederic Claux, managing director, thermal and supply AMEA, at Engie, Ahmed El-Hoshy, CEO of Fertiglobe, and Mohamed Jameel Al Ramahi, CEO of Masdar.
Claux 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.”
El-Hoshy added: “Abu Dhabi is an ideal location to produce green hydrogen given the country’s commitment to a low carbon future, its unique renewables profile and its strategic geographic location.
“The project marks another milestone for Fertiglobe’s green ammonia portfolio and follows the announcement last month of our new 100MW electrolyser in Egypt.”
Fertiglobe, the largest producer of nitrogen fertilisers and ammonia in the Middle East and North Africa, with a combined production capacity of 6.7 million tonnes of urea and merchant ammonia, will use the green hydrogen to produce green ammonia.
Green ammonia, produced from renewable energy such as solar and wind instead of natural gas, is a versatile product that is an ideal carrier to store and transport hydrogen.
Green ammonia is also an important alternative fuel in its own right.
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 are looking to develop projects with a capacity of at least 2GW by 2030, with a total investment in the region of $5bn.