Green Hydrogen

OVERVIEW

Hydrogen has long been touted as the “fuel of the future”. With global momentum to achieve decarbonization driven by new targets, regulations and technological advancements in hydrogen production, that future is now.

Green hydrogen is mainly hydrogen produced from water electrolysis powered by renewable electricity. The resulting energy carrier can be used in many energy applications. It can be used in the form of hydrogen or converted to other derivatives for industry, power, or transportation, supporting the decarbonization of hard-to-abate sectors like heavy industry, long-haul freight, shipping, and aviation. 

With such a wide range of prospective uses, global green hydrogen demand is expected to reach around 30 million tonnes per annum (mtpa) by 2030, continuing to grow exponentially to 610 mtpa by 2050.

In response to this vast potential and market need, Masdar’s new green hydrogen business aims to be a global green hydrogen leader. To achieve this, Masdar’s green hydrogen business is adopting a ‘smart first-mover’ approach by developing and investing in strategic projects and building scalable platforms in key markets. This will support global decarbonization efforts while advancing the UAE’s net-zero journey and creating significant value for Abu Dhabi by diversifying the economy through the development of a local green hydrogen industry.

STRATEGIC OBJECTIVES

Masdar’s green hydrogen business aims to produce up to 1 million tonnes of green hydrogen per annum by 2030. It is focused on meeting green hydrogen demand both domestically and internationally by targeting key segments, which include aviation, ammonia, steel, maritime, power, refining, and heavy-duty transportation.

PROJECTS

Masdar is already active in the green hydrogen space and has publicly announced several project agreements, detailed below:

  • In partnership with Siemens Energy, TotalEnergies, Marubeni Corporation, Department of Energy in Abu Dhabi, Etihad Airways, Lufthansa Group and Khalifa University, Masdar is leading the development of a demonstration project for the production of green hydrogen and sustainable aviation fuels (SAF).
  • Masdar, bP, and ADNOC have formed a UK-UAE new energy partnership that includes four agreements, of which Masdar is party to two: 
    • Masdar, bp, and ADNOC, along with Etihad and Tadweer, have agreed to explore the production of sustainable aviation fuels in the UAE using solar-to-green hydrogen and waste gasification.
    • Masdar has agreed to acquire a stake in bp’s proposed green hydrogen project, HyGreen Teesside, which is to produce 60 megawatts (MW) electrical input of hydrogen at start-up in 2025, increasing to up to 500 MWe by 2030.
  • Masdar and ENGIE formed a US$5 billion strategic alliance to help drive UAE’s green hydrogen economy, which includes:
    • Development of a 200 MW green hydrogen plant in the UAE with Masdar, Engie, and Fertiglobe.
  • Masdar, Hassan Allam Utilities, and Infinity Power signed agreements with the General Authority for Suez Canal Economic Zone, the New and Renewable Energy Authority, the Egyptian Electricity Transmission Company, and The Sovereign Fund of Egypt, related to the development of 4-gigawatt (GW) capacity green hydrogen plants in Egypt, which includes:
    • Development of a 2 GW green hydrogen project in the Suez Canal Economic Zone.
  • Masdar is developing a 2,000 MW capacity integrated offshore wind and green hydrogen project in Azerbaijan, as part of a 4,000 MW project agreement between Masdar and the Ministry of Energy of the Republic of Azerbaijan.