ADNOC, a responsible provider of reliable, lower-carbon intensity energy, announced today that it has signed a memorandum of understanding (MoU) with thyssenkrupp Uhde, a Germany-based subsidiary of thyssenkrupp Group that specialises in chemical engineering, to explore a long-term partnership to create new markets for hydrogen and promote global clean energy value chains.

Signed at Abu Dhabi Sustainability Week (ADSW), the agreement will focus on the development of projects for large-scale ammonia cracking, which is used to extract hydrogen from ammonia after transportation. Ammonia is a carrier of hydrogen, and it is much easier to compress and transport. When shipped, after arriving at its destination, the ammonia needs to be decomposed, or “cracked,” into hydrogen, before use in the energy value chain.

Under the agreement, the companies will work together to develop large-scale ammonia cracking plants with thyssenkrupp technology. The agreement will also lead to the exploration of opportunities in the clean energy value chain for the supply and shipment of low-carbon or green ammonia from the UAE to large-scale ammonia cracking facilities globally.

Musabbeh Al Kaabi, Executive Director, Low Carbon Solutions and International Growth Directorate, said, “ADNOC’s fast-growing hydrogen business is enabled by the UAE’s abundant and competitive energy reserves. We are committed to strengthening our position as a reliable supplier of lower carbon-intensive energy, creating new revenue streams and growing the global market for hydrogen. In doing so, we will work with like-minded partners, such as thyssenkrupp to deliver tangible solutions that contribute to the decarbonisation of the energy sector.”

The ammonia cracking process is based on globally proven Uhde reformer technology, which is applied in over 130 large-scale chemical plants across the world.

Cord Landsmann, thyssenkrupp Uhde CEO, said, “Countries in Europe, along with many others, are looking to clean hydrogen imports to decarbonise industry and society. Clean ammonia is the best way to transport hydrogen by ship, and together with ADNOC, we will deliver the last piece of the puzzle for global clean hydrogen trade at large scale.”

ADNOC has already invested in low-carbon ammonia, where the carbon dioxide (CO2) emitted during production is captured and stored underground. In May 2021, the company announced a 1 million tonnes per year low-carbon ammonia production facility at the TA’ZIZ industrial ecosystem and chemicals hub. The company has significantly expanded its strategic energy partnerships across the hydrogen value chain and shipped demonstration cargoes of low-carbon ammonia to customers in Germany and Asia to test its application.

ADNOC is also investing in green hydrogen – and renewable energy – through Abu Dhabi Future Energy Company (Masdar), a clean-energy powerhouse that will place the UAE at the forefront of the energy transition. Through this investment, ADNOC aims to become a world leader in green hydrogen.

The UAE and Japan on Monday signed several agreements and memoranda of understanding (MoU) to help accelerate the energy transition and the adoption of technology in industry.

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and UAE Special Envoy to Japan, met with Yasutoshi Nishimura, Japan’s Minister of Economy, Trade and Industry, on the sidelines of Abu Dhabi Sustainability Week (ADSW) 2023, to discuss the countries’ strong bilateral relations.

The ministers discussed ways to further strengthen the UAE’s and Japan’s relationship under the umbrella of their comprehensive economic partnership. They explored the hydrogen sector as a key component of a just energy transition. They also discussed the importance of accelerating progress towards carbon neutrality and opportunities for collaboration ahead of COP28, which will be held later this year.

Dr. Al Jaber said, “The UAE and Japan have a long-standing and strong relationship that has developed into a comprehensive economic partnership, underpinned by our leaderships’ commitment to enhance cooperation with strategic partners. We seek to build on this long-term partnership by exploring new opportunities for cooperation and investment that contribute to mutually beneficial sustainable economic growth and diversification.”

During the meeting, several agreements and MoUs were signed, which included a MoU between the Ministry of Industry and Advanced Technology and Japan’s Ministry of Economy, Trade and Industry. It concerns collaboration in the field of industry and advanced technology and aims to enhance partnerships between Emirati and Japanese companies as well as explore joint investment opportunities. It also aims to boost collaboration to accelerate the adoption of advanced technologies in support of both countries’ industrial goals and carbon reduction targets. The MoU was signed by Dr. Al Jaber and Yasutoshi Nishimura.

Dr. Al Jaber also witnessed the signing of a joint study agreement between ADNOC and Tsubame BHB. The agreement explores opportunities for cooperation in the field of research and development with the aim of finding new solutions for manufacturing ammonia. This agreement falls under the Japanese-Emirati partnership for advanced technology. This initiative supports Japanese technology startups and helps to connect them with Emirati investors to facilitate their expansion.

Dr. Al Jaber also witnessed the signing of an MoU between the Abu Dhabi Future Energy Company (Masdar) and the Japanese company JERA. This MoU covers the fields of green hydrogen and renewable energy.

The signing of these agreements and MoUs falls within the framework of the comprehensive economic partnership signed by the two countries in September 2022.

The volume of non-oil trade exchange between the two countries in 2021 amounted to more than AED49 billion. Additionally, the volume of non-oil trade exchange between the two countries grew by 4.3 percent during the first nine months of 2022, year-on-year.

Masdar, one of the world’s leading clean energy companies, has signed joint development agreements with the State Oil Company of the Republic of Azerbaijan (SOCAR), for onshore wind and solar projects, and integrated offshore wind and green hydrogen projects, with a total combined capacity of 4 gigawatts (GW).

The agreements were signed by Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, and Rovshan Najaf, President of SOCAR, on the sidelines of Abu Dhabi Sustainability Week, the global platform for accelerating sustainable development hosted by Masdar. Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, COP28 President-Designate, and Chairman of Masdar, and Mikayil Jabbarov, Minister of Economy for Azerbaijan, witnessed the signing.

Dr. Al Jaber said, “These agreements will serve to strengthen the already powerful relationship between the United Arab Emirates and the Republic of Azerbaijan, and are a testament to our shared commitment to diversifying our energy mix and developing low- and zero-carbon solutions. As global leaders gather here in the UAE for Abu Dhabi Sustainability Week, we are demonstrating the power of partnership and cooperation in advancing the inclusive energy transition and I look forward to seeing more announcements being made at ADSW.”

Al Ramahi said, “Masdar sees Azerbaijan as a key strategic partner, one we are proud to support in its clean energy journey. This signing marks a milestone on the development and delivery of a significant collaboration that will advance Azerbaijan’s renewable energy goals and support its ongoing sustainable economic development.”

In June last year, Masdar signed implementation agreements with Azerbaijan’s Ministry of Energy to develop a renewable energy program on a bilateral basis, with a total capacity of 10 GW across multiple technologies, one of the largest such signings in Azerbaijan’s history. The joint development agreements set out the collaboration and partnership principles between the parties for the development of the first phase of the program, with a total capacity of 4 GW.

SOCAR is an integrated national oil and gas company supporting the energy security of the Republic of Azerbaijan. Azerbaijan is pursuing a national target of producing 30 percent of its domestic power needs from renewable energy sources by 2030, as the Central Asian nation looks to diversify its economy and reduce greenhouse gas emissions.

Masdar is also developing the 230-megawatt Garadagh Solar PV Plant in Azerbaijan. The plant will help to generate half a billion kilowatt-hours of electricity annually, enough to meet the needs of more than 110,000 homes and will reduce emissions by more than 200,000 tonnes a year, while also creating valuable jobs.

Masdar recently announced a new shareholding structure and additional focus on green hydrogen, making it one of the largest clean energy companies of its kind. With a goal of achieving 100 GW renewable energy capacity and green hydrogen production of 1 million tonnes per annum annually by 2030, the new Masdar is a clean energy powerhouse that will spearhead the UAE’s Net Zero by 2050 Strategic Initiative and drive the global energy transition.

The Ministry of Industry and Advanced Technology (MoIAT) in collaboration with the Ministry of Energy and Infrastructure (MoEI) and Schneider Electric today announced the findings of a nationwide assessment of industrial companies that is designed to help enhance energy efficiency in the industrial sector ahead of the 28th UN Climate Change Conference (COP28) later this year.

Announced during Abu Dhabi Sustainability Week (ADSW), the assessment is the result of a partnership between MoIAT, MoEI and Schneider Electric, which is a member of the Champions 4.0 Network – a core pillar of UAE Industry 4.0 designed to accelerate the integration of 4IR solutions in industry.

The initiative surveyed 46 manufacturing facilities in the UAE operating across sectors such as energy, metals, food and beverage, chemicals, paper and wood, and other segments. Its findings indicated the manufacturing facilities included in the survey are ahead of the average in the smart utilization, monitoring and management of energy.

Omar Al Suwaidi, Under-Secretary of the Ministry of Industry and Advanced Technology, commented, “Energy efficiency is a key component in the UAE’s approach to enhance the sustainability of our industrial sector. Achieving greater energy efficiency through the adoption of technology helps to reduce emissions, improve the operational performance of our industrial facilities, and promote environmentally friendly practices. Under the umbrella of Make it in the Emirates initiative, we seek to empower industrial companies to adopt 4IR technologies that help them boost sustainability and productivity, and ultimately increase their regional and global competitiveness.”

He added, “We are delighted by the findings of this joint assessment, which provides the manufacturers with a roadmap for transformation towards sustainability and net zero. It demonstrates the positive impact the national industrial strategy, Operation 300bn, is having on the digitalization and efficiency of national industries. As part of this strategy, the Make it in the Emirates initiative helps supercharge industrial priority sectors and attract investments. We continue to build successful partnerships with international players who are eager to capitalize on the significant benefits and potential of establishing an industrial presence in the UAE.”

Sharif Al Olama, Under-Secretary of the Ministry of Energy and Infrastructure for Energy and Petroleum Affairs, commented, “The Ministry of Energy and Infrastructure plays a big role in shaping the future of the energy sector for the next fifty years and it has led the country’s effort in achieving resources sustainability through the formulation of the Energy Strategy 2050. Among the supporting programs that have been developed to support the Energy Strategy 2050 is the National Energy and Water Demand Side Management Program 2050, Which includes initiatives to reduce energy consumption for the largest energy-consuming sectors in the country, including the industrial sector. This program aims to reduce energy demand by 40% which will support cost reduction, investment, and sustainability.”

He added, “The results of this sustainability joint assessment will contribute to achieving the objectives of one of the main initiatives in the industry sector within the National Energy and Water Demand Side Management Program 2050 which is the Top 50 Program, that targets improving the efficiency of the top 50 energy-consuming industries in the UAE. This public-private partnership will encourage energy efficiency of the largest industrial consumers in the UAE, and encourage adoption of energy management practices which will build on the country’s efforts toward reducing GHG emissions.”

Ahmed Khashan, Gulf Cluster President at Schneider Electric, said, “Sustainability is a main driver of growth and a competitive advantage for the country’s industrial sector. Technological innovation is the key to driving sustainability. We are delighted to be able to deliver on the commitment we made to the Ministry of Industry and Advanced Technology along with Ministry of Energy and Infrastructure to play a pivotal role in supporting the country’s manufacturing sector in its journey to become greener, more energy efficient, and ultimately net zero.”

Increasing competitiveness through sustainability

The assessment, which commenced shortly after Schneider Electric joined the Champions 4.0 Network in January 2022, was divided into two models. The first assessment model measured the maturity of facilities and categorized them into: Basic, Aware, In-Control, and Advanced. The second assessment model measured the readiness of facilities and their prioritization of energy transformations and sustainability.

The assessment’s findings indicate that there is a significant opportunity for companies to adopt more practices around waste management, such as recycling and re-using, in line with national efforts to create a circular economy.

The report laid out a set of recommendations for policymakers and manufactures to help increase energy efficiency. These included advocating stronger rules on the metering and billing of thermal energy by giving commercial consumers more access to frequent and useful information on their energy consumption.

Several recommendations were developed for manufactures and end-users around sustainable management of assets, waste and product life cycle. It recommended creating sustainability roadmaps and setting hard targets to reduce carbon emissions across the entire value chain. It also stressed the importance of upskilling, education, awareness, and community engagement.

Public-private partnerships for a sustainable future

The partnership between MoIAT and Schneider Electric builds on the nation’s net-zero commitments to become a world leader in areas related to sustainability. It is also part of MoIAT’s Industry 4.0 Program that aims to increase industrial productivity by 30 percent and add AED 25 billion to the national economy by 2031. This also will help in achieving the targets of the National Energy and Water Demand Side Management Program 2050 by reducing energy demand by 40 percent. Schneider Electric is a founding member of the Champions 4.0 Network, which brings together leading local and international companies to share best practices in the deployment of 4IR technologies.

Announced in October 2021, Industry 4.0 aims to increase productivity and the development of innovative products as part of a broader strategy to add value to the national economy, expand and grow specific industrial sectors, and raise productivity. The program is implemented by MoIAT to encourage the adoption of advanced technologies such as IoT, machine learning, and artificial intelligence to transform the UAE into a global hub for smart manufacturing and innovation. Building on Industry 4.0 is the Technology Transformation Program, which launched last year marking a new phase of national competitiveness. So far, 13 projects have been announced under the program, which include major national and international companies.

The Ministry of Energy and Infrastructure launched in March 2021 the UAE National Demand Side Management Program with the detailed plan set to achieve the national demand reduction targe and to manage the demand for energy and water through plans and 21 programs that have a direct impact in the short, medium and long term that will ensure security of supply in the energy and water sectors

ADNOC, a reliable and responsible provider of lower-carbon intensity energy, announced today at Abu Dhabi Sustainability Week (ADSW) that it has begun work on the world’s first fully sequestered carbon dioxide (CO2) injection well in a carbonate saline aquifer.

The project, which is expected to begin injecting CO2 in Q2 2023, marks another important step in ADNOC’s commitment to decarbonise its operations, reduce its carbon intensity by 25% by 2030 and deliver on its Net Zero by 2050 ambition.

Yaser Saeed Almazrouei, ADNOC Upstream Executive Director, said, “Carbon capture and storage will play an important role in reducing emissions and achieving global climate goals, and ADNOC is building on its leadership position in this area as we continue to drive decarbonisation across our operations.

At Al Reyadah, ADNOC deployed the region’s first carbon capture project at scale, and we are taking another tangible step to deliver on our $15 billion decarbonisation action plan with the world’s first fully sequestered CO2 injection well.

“We will continue working to make today’s energy cleaner while investing in tomorrow’s clean energies and technologies to future-proof our business. In doing so, we will enable a lower-carbon future and remain a reliable and responsible energy provider to customers and markets worldwide.”

This innovative project will support ADNOC’s carbon capture and storage program, which is part of the suite of new projects and initiatives the company is advancing following the guidance by ADNOC’s Board of Directors to accelerate the delivery of its low-carbon growth strategy and the allocation of $15 billion (AED55 billion) to decarbonise its operations.

Once operational, the project will initially fully sequester a minimum of 18,000 tons per annum of CO2 captured from Fertiglobe’s UAE operations for injection in Abu Dhabi’s onshore carbonate aquifers, supporting ADNOC’s ongoing efforts to safely capture and store CO2 from its operations.

The CO2 injection well project builds on ADNOC’s experience with its carbon capture facility at Al Reyadah, which has the capacity to capture up to 800,000 tons of CO2 per year. The well location for CO2 injection and targeted geological formations were identified using the results of ADNOC’s extensive 3D seismic survey and the company’s state-of-the-art subsurface modelling capacity.

The project will contribute to the production of lower-carbon ammonia, an effective and cost-competitive hydrogen carrier that can be scaled up quickly and has lower-carbon intensity than other fuels. The project will also be monitored and assessed, using advanced technology at ADNOC’s Thamama Digital Centre of Excellence, to ensure the highest levels of environmental safety as the company expands its carbon capture activities to capture 5 million tonnes per annum by 2030.

The project is the latest in a series of decarbonisation initiatives, including a landmark agreement for ADNOC to acquire 100% of its grid power from the Emirates Water and Electricity Company’s (EWEC) nuclear and solar sources, making the company the first major oil and gas company to decarbonise its power at scale though an agreement of this kind.

Additionally, ADNOC recently reached financial close on a $3.8 billion deal to build a MENA first-of-its-kind sub-sea transmission network, connecting ADNOC’s offshore operations to TAQA’s clean onshore power network, which, once complete, could reduce offshore carbon intensity by up to 50%.

Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA’ZIZ) announced today the signing of a shareholder agreement with Fertiglobe, GS Energy Corporation (GS Energy) and Mitsui & Co., Ltd. (Mitsui), to develop an anticipated 1 million tons per annum low-carbon ammonia production facility at the TA’ZIZ Industrial Chemicals Zone.

The move is a further step in the project’s journey towards a final investment decision (FID).

The facility will reinforce Abu Dhabi’s position as a leader in low-carbon fuels and capitalise on the growing demand for low-carbon ammonia as a carrier fuel for clean hydrogen. The agreement builds on ADNOC’s deep experience in Carbon Capture, Utilisation and Storage (CCUS), Fertiglobe’s world-leading ammonia capabilities, and Mitsui and GS Energy’s leading roles in industrial decarbonisation.

It follows several agreements signed by ADNOC to explore hydrogen supply opportunities with customers in key demand centres including the Ministry of Economy, Trade and Industry of Japan, Japan’s Mitsui and Korea’s GS Energy.

Khaleefa Yousef Al Mheiri, TA’ZIZ Acting Chief Executive Officer, said, “This is a significant milestone in the development of our low-carbon ammonia business and further strengthens the UAE’s hydrogen value proposition. We are building on the collective strengths of our partners and shareholders to develop the first-of-its-kind large-scale low-carbon ammonia project in the Middle East and North Africa.

“As we continue to grow our manufacturing base in Al Ruways Industrial City, the UAE is well-placed to meet increasing global demand for chemicals while strengthening our position as a world-scale chemicals and industrial hub and top destination for local and international investment.”

The shareholder agreement highlights the exceptional international investor interest in TA’ZIZ and follows ADNOC and Fertiglobe’s recent sales of low-carbon ammonia demonstration cargos to customers in Japan, Korea and Germany.

Low-carbon ammonia is made from hydrogen derived from natural gas feedstocks and nitrogen, with the carbon dioxide produced captured and stored. Ammonia can be used as a low-carbon fuel for applications, including transportation and power generation and in industries, such as steel, cement and fertilisers.

The project will benefit from the UAE’s position as a major producer and reserves holder of natural gas and leader in CCUS. The CCUS process uses advanced technology to prevent CO2 from entering the atmosphere after it is expended in industrial processes. ADNOC operates Al Reyadah, the region’s first industrial-scale CCUS facility, with an 800,000 tons per year of CO2 capture capacity.

TA’ZIZ continues to advance at pace with site preparation underway and strategic agreements signed for the development of a world-scale ethylene dichloride (EDC), chlor-alkali, polyvinyl chloride (PVC) production facility with Reliance Industries and Shaheen, and with Proman for a world-scale methanol facility.

The total investment in the first phase of TA’ZIZ will be in excess of $5 billion (AED18 billion), with most of the chemicals produced to be created in the UAE for the first time. All agreements are subject to regulatory approvals.