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May 23, 2022

Abu Dhabi green hydrogen deal imminent

The technical study and land lease agreement for the project were finalised in March.

By MEED   

Companies are expected to sign a joint development agreement (JDA) by the end of May for the first phase of the planned AED3.7bn ($1bn) green hydrogen-based ammonia production facility in Khalifa Industrial Zone Abu Dhabi (Kizad).

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How can hydrogen ride the sustainability wave?

The Hydrogen market is expected to expand significantly in the next few years – GlobalData has tracked more than 43.6 mtpa of total active and upcoming low carbon hydrogen production capacity (green and blue hydrogen). As the industry develops and the cost of producing hydrogen drops, demand is expected to increase significantly. As a result, countries across the world are announcing much needed supporting policy framework for hydrogen. While refining and ammonia production have traditionally been the key consumer sectors for hydrogen, new uses such as transport and energy storage are set to influence the market. While green hydrogen presently has a small share in the overall production mix, it is poised to increase given the ambitious targets announced by various countries. GlobalData’s report provides insights into key issues in the emerging hydrogen space, such as:
  • Hydrogen value chain
  • Demand drivers
  • Key application areas
  • Technology trends
Read this report and formulate winning strategies for your business.
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“South Korean firms are set to sign a JDA … by end of May,” according to a source familiar with the project.

South Korean developer Kepco and engineering, procurement and construction contractor Samsung C&T could not be reached for comment on whether their companies will be part of the project.

The land lease agreement for the scheme has been signed, as MEED reported in late March. 

These developments follow the completion of the technical study undertaken by Germany’s Thyssenkrupp.

MEED understands the planned facility will integrate Thyssenkrupp’s green hydrogen and green ammonia technologies.

UK-headquartered Deloitte is understood to have carried out the study on behalf of special project vehicle Helios Industry, formed in May to implement the project.

Project specifications

The overall project will include an 800MW solar photovoltaic (PV) plant to power hydrogen-to-ammonia production. The plant is expected to produce 200,000 tonnes of green ammonia for export annually once completed.

The project’s initial phase entails a 300MW solar PV plant and an estimated 35,000 tonnes-a-year ammonia production facility.

However, final specifications and capacity for phase one are still under discussion.

The green ammonia production facility will target regional and international markets.

Close to $60bn-worth of green hydrogen and ammonia schemes have been announced in the Middle East and North Africa region since July 2020.


This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.

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Free Report
img

How can hydrogen ride the sustainability wave?

The Hydrogen market is expected to expand significantly in the next few years – GlobalData has tracked more than 43.6 mtpa of total active and upcoming low carbon hydrogen production capacity (green and blue hydrogen). As the industry develops and the cost of producing hydrogen drops, demand is expected to increase significantly. As a result, countries across the world are announcing much needed supporting policy framework for hydrogen. While refining and ammonia production have traditionally been the key consumer sectors for hydrogen, new uses such as transport and energy storage are set to influence the market. While green hydrogen presently has a small share in the overall production mix, it is poised to increase given the ambitious targets announced by various countries. GlobalData’s report provides insights into key issues in the emerging hydrogen space, such as:
  • Hydrogen value chain
  • Demand drivers
  • Key application areas
  • Technology trends
Read this report and formulate winning strategies for your business.
by GlobalData
Enter your details here to receive your free Report.

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