Effectively utilising existing infrastructure and manufacturing plants can help businesses take quicker decisions about the development of green energy projects while reducing financial risks.
Ahmed El-Hoshy, CEO of ADX-listed Fertiglobe, a joint venture of ADNOC and OCI NV, which is the developer of Egypt’s first green hydrogen plant, said companies should focus on existing plants and build upon them to develop clean energy sources.
Fertiglobe is the MENA region’s largest nitrogen fertiliser and ammonia producer and distributor. El-Hoshy was speaking at the annual ADIPEC summit in Abu Dhabi.
Companies have the infrastructure in place already to develop green alternatives to conventional energy sources, without the financial risk of developing new projects, he said.
“Let’s really focus on the plants we have existing and build upon them,” he said. “It makes sense to get hydrogen resources, and just plug it in there.
“If it doesn’t run, fine, you didn’t build a new converter, you already have the storage tanks, you already have the structure, you already have the distribution.”
Hydrogen can be used to power vehicles, for fuel cells for electricity generation, and is also commonly used in fertilisers and petroleum refining.
Green hydrogen is produced with the electrolysis of water using renewable electricity and has been cited as a critical enabler of the global energy transition to meet net zero carbon emissions targets.
Controlling the cost of hydrogen production is particularly key for agriculture, as its use in fertiliser means it is a key factor in preventing food price inflation, El-Hoshy said at the ADIPEC session.
(Writing by Imogen Lillywhite; email@example.com; editing by Daniel Luiz)