UAE state-backed renewable energy firm Masdar and French utility Engie have signed an initial agreement with Fertiglobe—a partnership between fertiliser supplier OCI and the UAE’s Adnoc—to co-develop a 200MW green hydrogen facility in the UAE.

The three companies will study the development, design, financing, procurement, construction, operation and maintenance of the facility—which would supply Fertiglobe’s existing ammonia production plants at Ruwais.

“This project will play a vital role in the development of the UAE’s green hydrogen economy, and represents the first concrete action taken by Masdar and Engie following the announcement last month of our strategic alliance,” says Mohamed Jameel al-Ramahi, CEO of Masdar.

That alliance saw the two companies agree to develop projects with a capacity of at least 2GW by 2030, with a total investment in the region of $5bn.

First production

The new facility is targeted to be operational in 2025, with Fertiglobe the sole long-term offtaker.

$5bn – Joint expected investment of Masdar and Engie in hydrogen projects

“The project marks another milestone for Fertiglobe's green ammonia portfolio and follows the announcement last month of our new 100MW electrolyser in Egypt,” says Fertiglobe CEO Ahmed el-Hoshy.

That project—at Ain Sokhna on the Gulf of Suez—will see Norwegian solar specialist Scatec build and operate the plant, with Fertiglobe affiliate Egypt Basic Industries acting as offtaker.

Fertiglobe wants to be the regional leader in low-carbon ammonia production by 2025 and is investing in initiatives to produce low- and zero-carbon ammonia. 

It will join Adnoc and holding company ADQ as a partner in a new 1mn t/yr blue ammonia project at Ta’ziz in Ruwais, subject to regulatory approvals, and has already sold two blue ammonia cargoes to Japan.

Engie is involved a number of green and blue hydrogen projects around the world, including a large project in Belgium.

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Author: Tom Young