Engie and Masdar set up $ 5 billion green hydrogen partnership
Engie and Masdar, major players in the energy transition sector on a global scale, have made a joint bet on the role of green hydrogen. The two companies have established a strategic alliance that they say would be worth $ 5 billion, for facilities with a total capacity of 2 GW.
Abu Dhabi Future Energy Co. (Masdar) of the United Arab Emirates and French energy company Engie have signed a strategic alliance agreement. They said they would work on establishing a large-scale green hydrogen hub for the Middle East Gulf Cooperation Council (GCC) region, including export potential.
The ceremony took place in the United Arab Emirates in the presence of French President Emmanuel Macron and Abu Dhabi Crown Prince Mohammed bin Zayed al-Nahyan. The companies have said they will explore the co-development of a UAE-based green hydrogen center. They seek to achieve a capacity of at least 2 GW by 2030 in the GCC block of countries.
Total investment in the region is estimated at $ 5 billion, according to the announcement. The GCC consists of Saudi Arabia, United Arab Emirates, Bahrain, Kuwait, Qatar and Oman.
Renewable hydrogen is essential for the energy transition
“We are very pleased to partner with Masdar to make a direct contribution to the UAE’s Net Zero 2050 strategic initiative. This strategic alliance illustrates Engie’s ambitious goals for the long-term development of renewable hydrogen, an essential tool in the energy transition, ”said Catherine MacGregor, CEO of the French multinational.
Green or renewable hydrogen is a gas produced from water by electrolysis using electricity from renewable energy plants
Masdar is 100% owned by Mubadala Investment Co., itself controlled by the Emirate of Abu Dhabi. Masdar offers solutions in the fields of energy, water, urban development and clean technologies. With its partner Taaleri, it is active in South-Eastern Europe, among other markets.
Engie, headquartered in La Défense in the Parisian suburb of Courbevoie, is focused on energy transition, but it also has assets in the gas, nuclear and oil sectors. As for the region monitored by Balkan Green Energy News, it is developing floating wind farm projects in Greece.
Race between gas, green hydrogen, carbon capture technologies
Green or renewable hydrogen is a gas produced from water by electrolysis using electricity from renewable energy plants. This is still an emerging technology, but it is estimated that it could quite quickly compete with gray hydrogen, which is sequestered from fossil gas. Such systems are becoming more and more expensive due to the cost of carbon emission certificates.
If carbon dioxide is captured in the same process, the fuel is called blue hydrogen. Carbon capture and storage solutions are also at an early stage of development and typically cost more than CO2 permits.
The deal in the United Arab Emirates was signed just after Iberdrola of Spain and H2 Green Steel of Sweden announced that they would jointly invest € 2.3 billion in a 1 GW green hydrogen production system. . They said it would be used to make steel in the Iberian Peninsula.
It should be noted that Siemens Energy and its local partners in Dubai unveiled a pilot plant project for green hydrogen in May.
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