Page 5 - MEOG Week 03 2021

MEOG COMMENTARY MEOG

opportunities, while we develop a roadmap to use in clean power generation.
create hydrogen production sites in Abu Dhabi, The IEEJ anticipates that the Saudi Arabia and
and the UAE,” he added. the UAE, alongside Australia and the US will be
Japan’s key suppliers, providing more than 30mn
Deal with Japan tonnes per year of ammonia by 2040, catering
Shortly before the ADHA announcement was to around 10% of Japan’s baseload demand. A
made, ADNOC and Japan’s Ministry of Econ- month later, Japan’s Prime Minister set a target
omy, Trade and Industry (METI) agreed to for carbon neutrality of 2050 and Tokyo recently
collaborate on initiatives in fuel ammonia and formalised its Green Growth Strategy for 2050
carbon recycling as Tokyo seeks to shore up a Carbon Neutral.
blue ammonia supply chain.
A memorandum of co-operation was signed Capabilities
by ADNOC’s AlJaber and METI Minister Hiro- At present, the state oil firm produces around
shi Kajiyama during the UAE’s virtual business 300,000 tonnes per year of hydrogen, noting via
trip to Japan. social media that it would “place special empha-
The announcement follows comments made sis on blue hydrogen as a major natural gas
a week earlier by METI director general of oil, producer and look to expand its total hydrogen
gas and mineral resources Ryo Minami that capacity to more than 500,000 tpy”.
Japan is planning to develop a supply chain of Meanwhile, Mubadala is expected to leverage
blue ammonia produced from natural gas “pos- Abu Dhabi Future Energy Co. (Masdar) “and its
sibly” in the Middle East by the late 2020s. extensive network of international technology
Meanwhile, Jaber said the agreement was and investment partners and other relation-
“another significant development for the UAE ships”. Separately, Masdar came to terms with
as we continue to explore the potential of new Siemens Energy to develop a facility at Masdar
fuels that can help us produce more energy with City to produce green hydrogen. The German
fewer emissions”. company is currently involved a green hydro-
He added: “Japan is ADNOC’s largest inter- gen mobility project alongside Dubai Electric-
national importer of oil and gas products with ity and Water Authority (DEWA) for display at
approximately 25% of its crude oil imported the delayed Expo 2020 which will power fuel
from the UAE and we continue to welcome new cell vehicles with hydrogen generated through
and existing Japanese partners to explore win- electrolysis from the Mohammed bin Rashid Al
win investment and growth opportunities in the Maktoum Solar Park.
UAE and across ADNOC’s full value chain as we For its part, ADQ said it would leverage its
focus on the post-Covid recovery.” portfolio companies including Abu Dhabi Ports,
With the announcement, ADNOC becomes Abu Dhabi Airports, Etihad Rail, Etihad Steel,
the second Gulf national oil company to explore Abu Dhabi National Energy Co. (TAQA) and
fuel ammonia and circular carbon opportunities Emirates Nuclear Energy Corp. (ENEC) to sup-
with Japan following the inaugural shipment of port the alliance’s goals.
blue ammonia from a pilot project between Saudi As more countries invest in the hydrogen
Aramco, Saudi Basic Industries Corp. (SABIC) revolution, the UAE, Abu Dhabi in particular, is
and Japan’s Institute of Energy Economics (IEEJ). positioning itself to be at the heart of this new
The September cargo which saw a 40-tonne con- industry, in terms of investment, innovation and
signment of ‘blue’ ammonia shipped to Japan for geography.™

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