ADNOC to expand German hydrogen partnerships
SUMMARY
The UAE wants a 25% foothold in Germany's hydrogen import market.
By Callum CyrusThe Abu Dhabi National Oil Company (ADNOC) is strengthening its collaboration with several German partners to expand the market for its green hydrogen exports, the company said on March 21.
A joint study agreement (JSA) is being established to explore green hydrogen trade from UAE to Germany, using liquid organic hydrogen carrier (LOHC) technology from Germany-based Hydrogenious.
Hydrogen distributors use LOHC compounds to store green hydrogen made by splitting water molecules, and then release the fuel by applying a chemical reaction.
Energy company Uniper has also signed up to the JSA agreement, as has Japanese electricity utility partnership JERA.
ADNOC also signed a memorandum of understanding (MOU) with HHLA, a Hamburg-based logistics and transport company, as well as AD Ports Group. The MOU is aimed at supporting the north German port city's ambitions of becoming a "hydrogen import hub."
The UAE aims to cement a 25% foothold in Germany's hydrogen import market along with other key territories, building on existing ventures such as its Fertiglobe partnership with OCI in Japan and South Korea.
ADNOC announced the agreements following a trade visit to UAE by Robert Habeck, Germany's vice-chancellor and federal minister for economic affairs and climate action. The two countries previously started a task force on the scope for hydrogen cooperation in November 2021.
Germany is already major clean hydrogen buyer due to the significant ammonia and refining capacity it possesses.
Clean hydrogen demand in the country is expected to reach up to 3mn metric tons/year before 2030, and could increase to more than 11mn mt/yr as carbon-intensive sectors like steel adopt the fuel. Together with the Netherlands, Germany accounted for 60% of north European clean hydrogen demand in 2020, according to the International Energy Administration.
However Berlin has ruled out direct support for domestically-produced blue hydrogen, made by splitting fossil gas into hydrogen and sending carbon to storage plants. On January 17, Habeck refused to back blue hydrogen subsidies, while pledging a "massive ramp-up" of hydrogen usage. But during a March 16 trade visit to Oslo, Germany's energy and climate secretary said Norwegian blue hydrogen imports and carbon storage could be used across the near-term transition.
Habeck is expected to target a 100% increase of Germany's hydrogen electrolyser capacity - systems used to break open green hydrogen from water using electricity - in forthcoming legislation due over Easter. That would mean achieving a 10,000 MW capacity by 2030.
