The UAE, which was the first country in the region to sign the Paris Climate Accord, has committed to decarbonisation through a clear strategy of reducing carbon emission and becoming the first Middle Eastern nation to commit to net-zero by 2050. The use of green hydrogen is expected to play a big role in this.
As the world moves towards a low-carbon future, local entities in the UAE are actively pursuing the opportunities presented by climate goals. With its abundance of sunshine, established supply chains, financially sound companies with a mandate to invest, underpinned by a supportive regulatory environment, Abu Dhabi is future focused with a burgeoning green hydrogen industry firmly in its sites.
Green hydrogen is an emerging opportunity. According to the US-based market intelligence company, Allied Market Research, the green hydrogen market size was valued at $300 million in 2020. That figure is projected to grow at a compound annual growth rate of nearly 55% from 2021 to 2028.
Abu Dhabi National Energy Company, known as TAQA, in addition to other utilities companies, is carving out its place in Abu Dhabi’s green hydrogen story. The company has exclusivity rights to all power and water projects in the Emirate over the next decade and has outlined its own commitment to decarbonisation and sustainable growth in its 2030 strategy.
“Global demand for green hydrogen is going to continue to grow, and it is another opportunity for TAQA and we are not sitting still,” said Jasim Husain Thabet, TAQA Group’s Chief Executive Officer and Managing Director.
TAQA has announced two Memorandum of Understandings (MoU) with key Abu Dhabi entities. The first with Abu Dhabi Ports to develop an industrial scale green hydrogen to ammonia export project in the emirate. The second, with Emirates Steel, is for the development of a 160 MW green hydrogen cogeneration facility to enable the region’s first green steel manufacturing.
These projects position Abu Dhabi as a hub for hydrogen export and transporting green ammonia and green steel to international markets, while also creating a product locally that can command more attractive prices for buyers seeking sustainable solutions. These exports, also support the decarbonisation efforts of industry and markets outside of the UAE.
TAQA is well placed with two of the most important infrastructure components to green hydrogen: world-class in terms of scale and cost for solar power and desalination plants. It currently has 1.2GW of solar power in operation with the Noor Abu Dhabi plant, and another 2GW under construction in Al Dhafra. In addition, the Taweelah Reverse Osmosis desalination plant, which is expected to come online in 2022, will produce 200 MIGD of water capacity using highly efficient technology.
