UAE's ADNOC signs up to hydrogen council

UAE national oil company ADNOC has joined the Hydrogen Council, a global coalition of companies that want to see hydrogen become an integral part of the energy transition.

"Energy demand continues to increase as global populations expand and economic development accelerates. With an energy transition taking place, this means that more energy is needed with fewer emissions," UAE industry minister Sultan Ahmad Al Jaber said in a statement on July 12. "ADNOC is an early pioneer in the emerging market for hydrogen and its carrier fuels, such as blue ammonia, driving the UAE’s leadership in creating international hydrogen value chains and a local hydrogen eco-system."

ADNOC plans to develop a "world-scale" 1mn metric ton/year blue ammonia plant in Ruwais by 2025, supplied by blue hydrogen from local industry. Ammonia can serve both as a fuel in its own right but also as a hydrogen carrier. This helps overcome the difficulty of transporting hydrogen because of its low volumetric energy density.

A final investment decision on the project is due in 2022. In June, ADNOC's joint venture with Dutch fertiliser producer OCI joined the scheme.

ADNOC said it can develop blue hydrogen competitively thanks to its abundant and low-cost hydrocarbons reserves, and its existing hydrogen and ammonia production facilities. It also described itself as a regional leader in carbon capture and storage. The company reinjects CO₂ from industry into its mature oilfields to boost recovery.

The Hydrogen Council was formed in 2017 but its membership has rapidly expanded in the past year as interest in hydrogen energy has gained traction, and now numbers more than 120 companies. Besides ADNOC, other recent additions to the group include Wood, Honeywell and Sasol, which like the UAE company will serve as steering members. Cellcentric, Howden, Indian Oil Corp, John Cockerill, Komatsu, MAN Energy Solutions, Parker Hannifin Corporation, and TUV SUD have also joined as supporting members, while Barclays and FiveT Hydrogen have joined as investors.

The council envisages hydrogen accounting for as much as 18% of global energy demand by 2050, predicting the fuel has the biggest potential in the energy and transportation sectors.

"We are delighted to welcome new members to the Hydrogen Council, coming from a wide range of geographies and sectors," Benoit Potier, chairman and CEO of Air Liquide and co-chair of the Hydrogen Council, said in a statement. "Their joining confirms that the interest in hydrogen is coming from across many sectors of the economy, and is turning into a priority for actors committed to energy transition."