Engie and Masdar Establish $ 5 Billion Green Hydrogen Alliance

Abu Dhabi Solar Panels, April 2019.

Marshall Colombe | Photo Disc | Getty Images

Masdar, a renewable energy business based in Engie and Abu Dhabi, France, has established a strategic alliance focused on the development of projects related to green hydrogen.

In an announcement last weekend, the two companies said the agreement “explored the joint development of a UAE-based green hydrogen hub.”

Although the details of the plan were relatively sparse, the company would consider developing a project with an electrolytic cell capacity of 2 gigawatts.

The investment in this initiative will be approximately $ 5 billion. In a statement, Engie CEO Catherine MacGregor described renewable hydrogen as an “essential tool for the energy transition.”

Engie and Masdar initially leveraged their existing infrastructure to “expand the ability to create gigascale green hydrogen hubs for GCC that could be exported to other markets. Target supply. “

GCC refers to the Gulf Cooperation Council, which consists of Saudi Arabia, United Arab Emirates, Bahrain, Kuwait, Qatar and Oman.

Hydrogen has various uses and can be introduced into various industries. It can be produced in several ways.

One method involves the use of electrolysis, where the electric current divides the water into oxygen and hydrogen.

When the electricity used in this process comes from renewable energy sources such as wind and solar, it is also called green or renewable hydrogen.

The United Arab Emirates, a member of the Petroleum Cartel OPEC, is an important producer of crude oil and gas. We are also blessed with a large amount of sunlight, which is an important element of solar power generation equipment.

In May, a Dubai-based project called “The First Industrial-Scale Solar-Driven Green Hydrogen Facility in the Middle East and North Africa” ​​was launched.

In a statement at the time, Siemens Energy said the pilot project would be powered by Mohammed bin Rashid Almaktoum Solar Park, a vast solar facility with a production capacity of 5,000 MW by 2030. I did.

The agreement between Engie and Masdar, announced on Friday, was heated following the news that Spanish power company Iberdrola and Sweden’s H2 Green Steel have partnered to develop a major facility to produce green hydrogen.

Last Thursday, the two companies announced that they would set up a green hydrogen facility with a 1 gigawatt electrolysis capacity on a € 2.3 billion ($ 2.6 billion) project.

Read more about CNBC Pro’s clean energy

There is excitement about the potential of hydrogen, but some business leaders are cautious when it comes to assessing the outlook for hydrogen, at least in the short term.

For example, in July, Eneru CEO Francesco Stares said, “There was no competition for capital between hydrogen and renewables.”

“Hydrogen today is a niche that needs to evolve into a commercial standard and … a big industry, competitive pricing,” said Stares, who will probably take 10 years to make such a change. I said it would be.

Engie and Masdar Establish $ 5 Billion Green Hydrogen Alliance

Source link Engie and Masdar Establish $ 5 Billion Green Hydrogen Alliance

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