Mainly planned for the UAE, Green hydrogen hub gets $5 billion investment support
- Hydrogen may be used in a variety of industries and has a wide range of uses.
- While there is enthusiasm about hydrogen’s potential, some industry leaders are hesitant in judging its possibilities, at least in the short term.
Joining Hands for Green Development
Engie, a French energy company, and Masdar, an Abu Dhabi-based renewable energy company, have formed a strategic partnership to create green hydrogen projects.
The firms stated the deal would “explore the co-development of a UAE-based green hydrogen center” in a statement released at the end of last week.
While the proposal’s finer details are few, the companies hope to create plants with a 2-gigawatt electrolyzer capacity.
An estimated $5 billion will be invested in the effort. Engie CEO Catherine MacGregor called renewable hydrogen “a crucial tool for the energy transition” in a statement.
Engie and Masdar claimed they would “first target local supply” by leveraging existing infrastructure. The goal is to increase capacity so that the GCC can build a giga-scale green hydrogen hub with the ability to export to other markets.”
The Gulf Cooperation Council (GCC) is made up of Saudi Arabia, the United Arab Emirates, Bahrain, Kuwait, Qatar, and Oman.
The Significant Approach, Electrolysis
Hydrogen may be used in a variety of sectors and has a wide range of uses. It can be made in a variety of ways.
Electrolysis is one of the approaches, which comprises breaking water into hydrogen and oxygen with electric current.
Some refer to this process as green or renewable hydrogen if the electricity utilized in it comes from a renewable source like wind or solar.
The United Arab Emirates, a member of the OPEC oil cartel, is a major petroleum and gas producer. It also has plenty of sunshine, which is essential for solar power installations.
The “first industrial-scale, solar-driven green hydrogen facility in the Middle East and North Africa,” according to a Dubai-based enterprise, was opened in May.
Siemens Energy claimed in a statement at the time that the trial project would be powered by the Mohammed bin Rashid Al Maktoum Solar Park. This is a massive solar power plant that will be able to produce 5,000 megawatts by 2030.
The deal between Engie and Masdar, which was revealed on Friday, came soon after the announcement. Iberdrola, a Spanish power provider, and H2 Green Steel, a Swedish firm, planned to team up and build a large facility to manufacture green hydrogen.
The companies announced last Thursday that the 2.3 billion euro ($2.6 billion) initiative will see them build a green hydrogen facility with a 1-gigawatt electrolysis capacity.
While there is enthusiasm about hydrogen’s potential, some industry leaders are hesitant in judging its possibilities, at least in the short term.