The collaboration between the Abu Dhabi Department of Economic Development and the UK-based private equity fund HYCAP marks a significant move towards green hydrogen production, storage, and transportation. This partnership lays the groundwork for an industrial complex, created by ADDED’s Industrial Development Bureau and HYCAP. This complex involves an electrolysis plant, a hydrogen storage facility, and hydrogen tankers to facilitate transportation.
In addition, Arafat Al Yafei, the executive director of IDB, expressed delight over the agreement with HYCAP. He underscored its importance in advancing Abu Dhabi’s status as the most competitive industrial hub in the region. He also emphasized the significance of such partnerships in fulfilling the goals outlined in the Abu Dhabi Industrial Strategy.
Moreover, Emirati authorities aim to position the UAE among the top ten producers of green hydrogen by 2031. Therefore, they are targeting an annual output capacity of 1.4 million tonnes. Green hydrogen, recognized as a renewable energy source, is instrumental in mitigating greenhouse gas emissions.
Furthermore, Richard Bolwijn, Director of Investment Research at UNCTAD, emphasized the increasing importance of public-private partnerships in advancing green energy. Bolwijn highlighted the potential to reduce investment risks through collaboration. He cited examples where international investors and multilateral development banks partnered with governments to reduce project costs significantly.
What’s more, the proposed industrial complex in Abu Dhabi follows earlier initiatives in the UAE aimed at producing and storing green hydrogen. In May 2021, Siemens Energy proposed building a green hydrogen plant in Dubai. This marks a significant departure from Abu Dhabi’s heavy reliance on fossil fuels.
Speaking about the Abu Dhabi green hydrogen project, Jo Bamford, Chairman and Founding Partner of HYCAP Group, stressed the UAE’s leadership in transitioning towards clean, renewable energy. He stressed the strategic position of HYCAP Group in the UAE, emphasizing the commitment of the region to seizing the opportunities presented by renewable energy.
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