ABU DHABI, 24th May, 2022 (WAM) — H.H. Sheikh Khaled bin Mohamed bin Zayed, Member of Abu Dhabi Executive Council, Chairman of Abu Dhabi Executive Office, and Chairman of the Executive Committee of the Board of Directors of Abu Dhabi National Oil Company (ADNOC), has witnessed the signing of a partnership between Abu Dhabi National Oil Company (ADNOC), bp and Masdar to progress their strategic new energy partnership through the development of clean hydrogen and technology hubs, maximising opportunities of the energy transition.
In the UK, ADNOC and bp advanced to the design phase (pre-FEED) of the H2Teesside low-carbon hydrogen project, while Masdar and bp signed a Memorandum of Understanding (MoU) to explore potential collaboration on the HyGreen Teesside green hydrogen project in the UK’s Teesside industrial cluster which will be powered by offshore wind.
In the UAE, ADNOC and bp moved to conduct a joint feasibility study for a low-carbon hydrogen project in Abu Dhabi. ADNOC, bp and Masdar also agreed to explore the production of Sustainable Aviation Fuels in the UAE using solar-to-green hydrogen and municipal waste gasification, leveraging the capabilities of the UAE’s Tadweer (Abu Dhabi Waste Management Centre) and Etihad Airways.
The companies’ successful progress in developing their new energy partnership builds upon the strategic framework agreements signed during the September 2021 visit to the UK by President His Highness Sheikh Mohamed bin Zayed Al Nahyan.
Commenting on the agreements, Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Masdar Chairman, said, “ADNOC and Masdar’s deepened partnership with bp is a testament to the UAE and UK’s longstanding track record of bilateral partnership in sustainability as well as the UAE’s intent to play a leading role in the fast-growing clean hydrogen economy both domestically and internationally.
“To that end, we welcome the opportunity to collaborate with bp in both the UAE and UK, laying the groundwork for a deeper commercial partnership in the area of new energies and clean technologies. In the UK, our role in Teesside will represent ADNOC’s first investment into the UK and help to accelerate innovation in the decarbonisation of energy in industrial sectors. Similarly, the partners’ collaboration in Abu Dhabi is expected to further position the UAE as a leader in low-carbon energies and technology-driven industrial growth.”
Bernard Looney, bp’s Chief Executive Officer, said, “ADNOC and Masdar’s involvement reinforce the world-leading role that Teesside and the UK more widely can play in leading the development of low carbon hydrogen for low carbon economies. From supply chains to skills, Teesside and bp are ready to deliver.
“Our partnership with ADNOC and Masdar stretches internationally and will be able to help decarbonise some of the most hard-to-abate sectors in the world – like industrial manufacturing, power and aviation – in a sustainable way. I want to thank Dr. Sultan for his continued commitment to the UAE’s energy transition. Partnerships like this reach beyond borders to provide the new energy solutions the world needs.”
Falah Al Ahbabi, Chairman of Abu Dhabi Waste Management Centre, Tadweer, said, “The Abu Dhabi Waste Management Centre is keen to develop strategic partnerships which align with our ongoing efforts to divert waste from landfills and leverage commercially viable technology solutions to overcome the challenges posed by the treatment of vast volumes of waste. This agreement is a testament to our mutual commitments to sustainability and will boost Abu Dhabi’s and the UAE’s position as a world leader in the realm of green energy.”
Masdar CEO, Mohamed Jameel Al Ramahi, said, “Today’s announcements will strengthen the strategic partnership between Masdar, ADNOC and bp and continue to drive clean energy innovation for both the UAE and the UK. Masdar has been a longstanding investor in the UK’s renewable energy sector, and we will leverage our expertise in offshore wind and sustainable aviation fuels to support both nations’ energy transition while solidifying the UAE’s leadership position in the emerging green hydrogen economy.”
Tony Douglas, Group Chief Executive Officer, Etihad Aviation Group, said, “Although aviation is considered one of the harder sectors to decarbonise, meaningful progress can be made if a basket of measures – including both SAF and LCAF – are pursued. We believe that a balanced approach is required, exploring future opportunities for SAF while improving the carbon intensity of hydrocarbon-based aviation fuels. This partnership between ADNOC, bp, Tadweer and Masdar supports Etihad’s SAF and LCAF strategy as key components to reduce carbon emissions until alternative fuels and technologies become fully viable.”
ADNOC and bp’s UK project, H2Teesside, will be co-developed within Teesside, a part of the East Coast Cluster on the Eastern coast of the UK, leveraging access to North Sea gas and bp’s existing CCUS capabilities.
End-users of clean hydrogen produced at the planned project are expected to include neighbouring large-scale industrial offtakers, such as chemical processors, fertiliser manufacturers and heat and power generators. Similar use cases as well as mobility demand in Teesside will be explored by bp and Masdar in the area of green hydrogen, setting the stage for robust end-to-end green hydrogen value chains.
In the UAE, ADNOC and bp expect to capitalise on Abu Dhabi’s existing industrial infrastructure, significant gas resources, and proximity to future clean hydrogen demand centres to potentially develop a world-scale low-carbon hydrogen facility. In addition, ADNOC, bp and Masdar have welcomed Abu Dhabi’s Tadweer and Etihad Airways to the UAE-UK new energy partnership, further strengthening the UAE’s value proposition within the hydrogen economy.
Under the terms of the new agreement, ADNOC, bp and Masdar will leverage Tadweer’s extensive operational experience in circular economy innovations to explore conversion of municipal waste into Sustainable Aviation Fuels for Etihad Airways via gasification powered by solar-to-green hydrogen.
Building on the agreements announced in September 2021, ADNOC, bp and Masdar also deepened their collaboration on critical clean energy technologies, including Smart Decision Centres to support advanced performance management, best-in-class Methane Emissions Detection Platforms and Carbon Capture, Utilisation and Storage (CCUS) technology at ADNOC’s Bab field.
The UAE and UK’s expanded new energy partnership closely aligns with the UK’s recently announced commitment to achieve 10GW of low-carbon hydrogen by 2030 and the UAE’s Nationally Determined Contribution of reducing greenhouse gas emissions by 23.5% compared to business as usual for the year 2030.
ADNOC, bp and Madsdar welcome the opportunity to contribute to these bold national ambitions and will seek to increase knowledge sharing on new energy policy between the public and private sectors.
Employees from the partners will be initially seconded in Abu Dhabi and the UK, while, longer-term, the companies hope to increase capabilities to co-develop low and zero-carbon innovations and technology.