Mubadala, ADNOC and ADQ form alliance to accelerate Abu Dhabi Hydrogen leadership

• Develops international green and blue hydrogen opportunities across the value chain
• Creates further In-Country Value opportunities across the knowledge and manufacturing sectors  

Abu Dhabi, United Arab Emirates: Mubadala Investment Company (Mubadala), The Abu Dhabi National Oil Company (ADNOC), and ADQ, today announced the signing of a Memorandum of Understanding (MoU) to establish the Abu Dhabi Hydrogen Alliance (the Alliance). The Alliance partners will collaborate to establish Abu Dhabi as a trusted leader of low-carbon green and blue hydrogen in emerging international markets. They will also work together to build a substantial green hydrogen economy in the UAE.

Under the terms of the agreement, the Alliance will develop a roadmap to accelerate the UAE’s adoption and use of hydrogen in major sectors such as utilities, mobility and industry, through their respective operating companies and with international partners. Mubadala, ADNOC and ADQ will also align on their approach to international markets, for projects developed under the Alliance, with the aim of positioning Abu Dhabi as a reliable and secure supplier of hydrogen and its carriers to customers around the world as demand grows.

During a virtual ceremony, the MoU was signed by H.E. Khaldoon Khalifa Al Mubarak, Managing Director and Group Chief Executive Officer of Mubadala Investment Company, H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, and H.E. Mohamed Hassan Alsuwaidi, Chief Executive Officer of ADQ.

Commenting on the importance of the Alliance, H.E. Khaldoon Khalifa Al Mubarak said: “As a responsible investor, we are actively engaged in a number of new energy investments that will contribute to more efficient and lower emission energy solutions. Hydrogen offers significant potential in this regard and with the renewables expertise and experience of Masdar, we are well placed to develop leadership in the green hydrogen value chain.

“Our engagement with ADNOC and ADQ is an important step in the establishment of the UAE’s hydrogen economy, and to align on technology, investment, the development of the domestic market and our approach to international partners and offtakers.”

H.E. Dr. Al Jaber said: “I am pleased that we are coming together as ADNOC, Mubadala and ADQ on this important initiative to explore and develop the potential of hydrogen as a new, low carbon fuel.

This alliance integrates our complementary strengths as industrial, energy and financial leaders to address the global challenge of meeting energy demand, while reducing emissions. 

In addition, this Alliance will build on Abu Dhabi and the UAE’s global energy leadership and position as the center of gravity for energy innovation. 

While we explore green hydrogen opportunities through the Alliance, ADNOC will place special emphasis on pursuing blue hydrogen projects by expanding on its existing hydrogen capacity, leveraging its significant gas reserves and best-in-class infrastructure, as well as its extensive customer relationships to help advance the hydrogen industry, both domestically and internationally.

Working together as an alliance, we will identify viable international market opportunities, while we develop a  roadmap to create hydrogen production sites in Abu Dhabi, and the UAE.

H.E. Mohamed Hassan Alsuwaidi, CEO of ADQ, commented: “Forming the Abu Dhabi Hydrogen Alliance is an imperative that would deepen the hydrogen energy economy in the UAE allowing it to meet the rapidly growing global demand for hydrogen worldwide. With Abu Dhabi’s largest portfolio of energy and utilities investments, ADQ would play an important role in the transition to cleaner energy while shaping the future of this economic cluster leading to Abu Dhabi longer-term sustainability. Additionally, as ADQ continues to develop key clusters in the local economy, including mobility and logistics, we are well-placed to drive local adoption in sectors with high energy demand.”

“ADQ looks forward to working with ADNOC and Mubadala in defining the agenda for the Alliance. The scale of resources and experience each company brings to the new Alliance positions Abu Dhabi for accelerated growth in the hydrogen energy field, ultimately supporting the realization of the UAE’s decarbonization objectives.”

 The companies are building on their complementary strengths to accelerate Abu Dhabi’s hydrogen leadership. ADNOC already produces around 300,000 tons per annum of hydrogen for its downstream operations, with plans to expand to more than 500,000 tons,and is well placed to build on its advantaged position as a major natural gas reserves holder and producer, with existing infrastructure and strong partnerships and customer relationships around the world. The signing today follows ADNOC’s agreement last week with the Ministry of Economy, Trade and Industry of Japan  to explore cooperation on fuel ammonia and carbon recycling, harnessing technologies which will enable the hydrogen economy.

Mubadala will contribute through Masdar, its global renewable energy champion, and its extensive network of international technology and investment partners and other relationships.  ADQ will bring together its portfolio companies across the energy value chain, with companies such as Abu Dhabi Ports, Abu Dhabi Airports, Etihad Rail, Etihad Steel, Abu Dhabi National Energy Company (TAQA) and Emirates Nuclear Energy Corporation (ENEC) to enable activities undertaken by the Alliance.

While the Alliance will pursue green hydrogen domestically, ADNOC will continue to develop blue hydrogen independently within the UAE, leveraging its existing capacity and capabilities.

The development of a local hydrogen economy is a natural proposition for the UAE. Its strong track record and industrial capacity across the energy value chain, coupled with its geographic location advantages, and growing local and export demand, mean that the country is uniquely positioned to establish a clean hydrogen economy.

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About Mubadala

Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for the Government of Abu Dhabi.  Mubadala’s $232 billion (AED 853 billion) portfolio spans six continents with interests in multiple sectors and asset classes. We leverage our deep sectoral expertise and long-standing partnerships to drive sustainable growth and profit, while supporting the continued diversification and global integration of the economy of the United Arab Emirates Headquartered in Abu Dhabi, Mubadala has offices in London, Rio de Janeiro, Moscow, New York, San Francisco and Beijing.

For more information about Mubadala Investment Company, please visit: www.mubadala.com  

About ADNOC 

ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. ADNOC’s objective is to maximize the value of the Emirate’s vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates’ economic growth and diversification. To find out more, visit: www.adnoc.ae  

About ADQ   

Established in Abu Dhabi in 2018, ADQ is one of the region's largest holding companies with direct and indirect investments in more than 90 companies locally and internationally. Both an asset owner and investor, ADQ’s broad portfolio of major enterprises span key sectors of a diversified economy, including energy and utilities, food and agriculture, healthcare and pharma, and mobility and logistics, amongst others. As a strategic partner of Abu Dhabi’s government, ADQ is committed to accelerating the transformation of the emirate into a globally competitive and knowledge-based economy.  

For more information, visit adq.ae or write to media@adq.ae

© Press Release 2021