UAE plans to invest $23 billion in low-carbon energy solutions over the next five years

 

The United Arab Emirates (UAE) plans to invest $23 billion over the next five years in next-generation low-carbon energy sources such as hydrogen and ammonia. Abu Dhabi National Oil Company (ADNOC) aims to capture 5% of the world’s clean hydrogen production by 2030, according to Musabbeh Al Kaabi, Executive Director of ADNOC’s low-carbon division. While continuing to develop oil and natural gas, ADNOC will produce hydrogen and ammonia both in the UAE and Texas, focusing on blue and green hydrogen, which emit low to zero greenhouse gases.

ADNOC plans to process hydrogen into ammonia, a more easily transportable form, for export to markets like Japan, South Korea, and Europe. Global low-carbon hydrogen production is expected to reach 38 million tonnes annually by 2030. ADNOC’s long-term partnerships with Japanese companies will support Japan’s decarbonization efforts, reflecting the UAE’s role in promoting low-carbon solutions through collaboration with energy consumers worldwide. Al Kaabi noted that low-carbon energy costs are relatively low in Abu Dhabi, and called for Japanese government support to scale the initiatives.

Additionally, the UAE aims to capture and store up to 10 million tonnes of carbon dioxide annually by 2030, equivalent to the emissions from 2.4 million passenger vehicles. Currently, the country operates facilities capturing 800,000 tonnes per year, with plans to commercialize projects for a total of 3 million tonnes annually. Balancing fossil fuel production and low-carbon energy supply, ADNOC will also invest $4 billion in electrifying offshore oil fields by installing undersea cables, powered by renewable energy and nuclear plants, to reduce emissions from oil production.