Abu Dhabi National Oil Company (ADNOC) has signed an agreement with South Korea’s GS Energy to explore opportunities for growing the UAE’s hydrogen economy and carrier fuel export position.
GS Energy, which operates an onshore concession in Abu Dhabi, is interested in ADNOC’s planned increase in the production of blue hydrogen. Gulf oil companies are gradually prioritizing clean fuel as an alternative energy source. The hydrogen formed when natural gas is split using steam methane reforming is referred to as the blue variant.
Dr. Sultan Al Jaber UAE Minister of Industry Advanced Technology and ADNOC Group Chief Executive commented that “the partnership identifies possible areas of investment in Abu Dhabi’s emerging blue hydrogen ecosystem as well in the refining and petrochemicals hub in Ruwais”.
The UAE, which accounts for nearly 4.2 percent of global crude output, meets 10 percent of South Korean oil imports. Gulf oil producers, such as the UAE and Saudi Arabia, have sought to expand their current fossil fuel-based relationships to trade in newer forms of energy.
Saudi Arabia has agreed to ship natural gas to South Korea in exchange for carbon dioxide to produce hydrogen. The CO2 gas will then be used in oil production facilities in Saudi Arabia.
Mr. Yongsoo Huh President and Chief Executive of GS Energy stated that “as a stakeholder and a partner of the Adnoc upstream concessions, we are excited to strengthen this partnership by jointly seeking opportunities within the blue hydrogen ecosystem”.
ADNOC currently produces 300,000 tonnes of hydrogen per year for its downstream operations. The company intends to expand its gas production ability to over 500,000 tonnes.
The partnership will work to grow green hydrogen across the UAE, while ADNOC will continue to manufacture blue hydrogen using its existing infrastructure.