SAWT BEIRUT INTERNATIONAL

| 20 October 2021, Wednesday |

BP, Adnoc and Masdar to produce hydrogen in UK and UAE in clean energy partnership

BP, Masdar and Adnoc will join efforts to develop low carbon hydrogen hubs and decarbonized air travel corridors between the UK and UAE, in the latest string of agreements deepening the strategic relations between the two countries.

Together, the British multinational, clean energy company Masdar and the Abu Dhabi National Oil Company, initially plan to produce 2 gigawatts of low carbon hydrogen in the UK and UAE. The intention is to expand as the project progresses, they said in a statement also announcing two other agreements.

Hydrogen – which can be produced from both renewable energy and natural gas – is expected to become a critical fuel as economies and industries transition to a low carbon world to alleviate climate change and global warming.

The use of sustainable fuels, such as hydrogen, is a key part of aviation’s effort to support bringing global energy-related carbon dioxide emissions to net zero by 2050 and help meet the goal of limiting the temperature rise to 1.5 °C.

The industry represents approximately 2.5 percent of global human-induced CO2 emissions, according to Airbus.

The British Government’s overall target for hydrogen production is 5GW by 2030. The UAE has also promised to develop hydrogen production capacity.

“The UK and UAE have enjoyed decades of strong economic ties and the agreements signed today between Adnoc, Masdar and BP will serve to deepen the strategic relationship between our countries. We look forward to building upon this legacy to strengthen both countries’ ambitions to generate economic growth through low-carbon initiatives,” said Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, managing director and group chief executive of Adnoc and chairman of Masdar.

Bernard Looney, BP’s chief executive, said: “The UK and UAE governments have bold plans for decarbonization. The UK is our home and we have worked in the UAE for nearly a century. By partnering with the visionary leaders of Adnoc and Masdar, we see massive business opportunity to generate the clean energy the world wants and needs – and at the same time revitalize local economies and create the jobs of the future.”

The hydrogen production partnership between the three companies could also lead to the first international investment in a low carbon hydrogen facility in Teesside, in the north of England, supporting thousands of jobs and stimulating economic growth.

It is also likely to diversify and boost local supply chains in both the UK and UAE.

UK Prime Minister Boris Johnson called the deal a “fantastic investment in the industries of the future, creating high value jobs across the UK as we build back better and greener.”

”It is clear indication that businesses in the energy sector are taking the transition to cleaner solutions seriously, and a major boost to the UK’s own ambitious net zero goals. Our Global Investment Summit later this year will attract more exciting investment like this to the UK, demonstrating that economic growth, technological advancement and fighting climate change go hand-in-hand,” he said.