Hydrogen and ammonia key to new low carbon supply chain agreement

National energy giant, ADNOC and Mitsubishi Heavy Industries (MHI), have announced they have reached agreement to examine a range of new projects designed to create a low carbon future.

Against the backdrop of the COP28 conference the pair revealed they have signed a strategic collaboration agreement (SCA) to explore potential opportunities to build low carbon energy supply chains and advance carbon neutral solutions to accelerate decarbonisation across the energy sector.

Musabbeh Al Kaabi, executive director, low carbon solutions and international growth, ADNOC, said: “This agreement with Mitsubishi Heavy Industries builds on the UAE’s longstanding and successful strategic energy relationship with Japan. By matching Mitsubishi Heavy Industries’ related technologies with our assets, we will not only assess opportunities to develop the important hydrogen and ammonia value chains but also explore synergies that have the potential to benefit ADNOC and the broader new energies ecosystem. Our combined expertise and commitment to advancing carbon neutral technologies offers great potential to help accelerate ADNOC’s journey to net zero by 2045.”

The two companies said the SCA will enhance the longstanding strategic energy relationship between the UAE and Japan.

“Through the SCA, ADNOC and MHI will seek to complement their strengths and create synergies, with the aim of accelerating the development of global hydrogen and ammonia value chains. ADNOC and MHI will also explore research and deployment of carbon management technologies,” they added. “Low carbon hydrogen and ammonia are critical to decarbonizing hard-to-abate industries and meeting growing global demand for cleaner feed stock for power generation.”

Dr. Hitoshi Kaguchi, senior executive vice president at MHI who is responsible for energy transition and the expansion of growth fields, said: “It is a great honour to collaborate with a leading company in decarbonizing hard-to-abate industry sectors, and in developing a low carbon fuel value chain globally. We are looking forward to contributing to ADNOC’s net zero ambition through our reliable technology in the coming projects under this Agreement.”

ADNOC said it has been an early mover in developing global markets for clean hydrogen and ammonia. The company is building a 1 million tons per year low-carbon ammonia production facility at the TA’ZIZ industrial ecosystem and chemicals hub in Ruwais, Abu Dhabi. ADNOC added it has also expanded its strategic energy partnerships across the hydrogen value chain and has shipped several demonstration cargoes of low-carbon ammonia to customers in Asia and Germany.

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