ADNOC, BP mull hydrogen hubs in Abu Dhabi, UK

MADRID (ICIS)–ADNOC and BP have signed an agreement to explore the construction of two hydrogen hubs in their domestic markets, Abu Dhabi and the UK, each with a production capacity of 1GW, the two energy majors said on Friday.

The third party to sign the agreements was Masdar, Abu Dhabi’s planned city project where the project would be located.

Abu Dhabi is one of the seven emirates of the UAE and serves as its capital; ADNOC is UAE’s state-owned energy major.

The agreements also contemplate expanding facilities for carbon capture, usage and storage (CCUS) at Al Reyadah, Abu Dhabi.

“The hydrogen agreements also align with the UK’s recently announced commitment to achieve 5GW of low-carbon hydrogen by 2030 and the UAE’s Nationally Determined Contribution of reducing greenhouse gas [GHG] emissions by 23.5% compared to business as usual for the year 2030,” said the two energy majors.

ADNOC is also becoming heavily involved in the fast-growing blue ammonia market, with the low-carbon nitrogen fertilizer comprising a large amount of hydrogen.

In June, ADNOC and Abu Dhabi Developmental Holding Company (ADQ) partnered up with Fertiglobe (an ADNOC/OCI joint venture) for a new world-scale 1m tonne/year blue ammonia project at TA’ZIZ in Ruwais, subject to regulatory approvals.

Fertiglobe is the world’s largest seaborne exporter of nitrogen products, and its Fertil plant has production capacities of 1.2m/year tonnes of ammonia and 2.1m/year tonnes of urea.

A third leg of the agreements signed on Friday by BP and ADNOC includes potential projects for greenfield carbon capture and underground storage and methane detection.

Methane is one of the most polluting GHG; production of natural gas or livestock, to mention two, are big polluters via methane emissions.

Additional reporting by Richard Ewing

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