Clean energy partnership supports UK and UAE goals

Article by Amanda Jasi

Tommy Lee Walker / Shutterstock.com

ENERGY companies Abu Dhabi National Oil Company (ADNOC), BP, and Masdar have signed strategic partnership agreements to provide clean energy technologies to the UK and UAE, including carbon capture, use, and storage (CCUS) and hydrogen.

The first agreement will see all three companies collaborate to develop 2 GW of low carbon hydrogen across hubs in the UAE and UK – 1 GW located in each country – with the intent to expand as the project progresses. The partners say clean hydrogen is a critical fuel for decarbonising hard-to-abate industries, where it can reduce emissions, enable new, low-carbon products, and unlock future fuels.

This work could lead to the first international investment in BP’s H2Teeside, a low carbon hydrogen facility in Teesside, UK expected to come onstream in 2027. The 1 GW facility will be developed in stages with an initial 500 MW expected in 2027. The facility is expected to capture 2m t/y of CO2 through the Northern Endurance Partnership, which was formed to develop CO2 transport and storage infrastructure in the UK North Sea.

Collaboration in hydrogen could contribute to the UK Government’s target to generate 5 GW of low carbon hydrogen production capacity by 2030, for homes, industry, power, and transport. The UK Government’s Hydrogen Strategy – published in August – sets out how it will work with industry to achieve 5 GW of low carbon hydrogen production capacity by 2030.  

The work would also align with UAE’s Nationally Determined Contribution of reducing greenhouse gas emissions by 23.5% by 2030, compared to the business-as-usual (BAU) scenario. The 2030 BAU emissions are projected at about 310m t.

The investment is expected to support thousands of jobs and stimulate economic growth, and to diversify and bolster local supply chains in both the UAE and UK.

Working together BP and Masdar will explore opportunities to develop, build, and operate clean energy and mobility technologies for cities in the UK and UAE, and others. Masdar, focussed on renewable energy and sustainable urban development, is a wholly owned subsidiary of Abu Dhabi Government-owned investor Mubadala Investment Company. The companies will initially focus on the application of energy efficiency and storage, cleaner fuels, and distributed renewables generation.

ADNOC and BP will deepen their collaboration to decarbonise existing oil and gas operations in Abu Dhabi, including through the potential development of CCUS hubs.

The companies will also look to use advanced methane detection and reduction technologies and create so-called smart decision centres in the UAE where digital and artificial intelligence (AI) technologies would accelerate operational efficiency.  

ADNOC and BP will jointly identify areas for potential partnership in greenfield carbon capture and underground storage, and best-in-class methane detection platforms.

In addition to the UK Government’s ten-point plan, the areas of collaboration announced also align with UAE’s The Principles of the 50, announced earlier this month. The 10 principles outlined are a guideline for all UAE institutions as the country approaches a new phase of development over the next 50 years.

Bernard Looney, CEO of BP, said: “By partnering with the visionary leaders of ADNOC and Masdar, we see massive business opportunity to generate the clean energy the world wants and needs – and at the same time revitalise local economies and create the jobs of the future.”

UK Prime Minister Boris Johnson said the investment is “clear indication that businesses in the energy sector are taking the transition to cleaner solutions seriously, and a major boost to the UK’s own ambitious net zero goals. Our Global Investment Summit later this year will attract more exciting investment like this to the UK, demonstrating that economic growth, technological advancement, and fighting climate change go hand-in-hand.”

Sultan Ahmed Al Jaber, CEO of ADNOC, said: “The UK and UAE have enjoyed decades of strong economic ties and the agreements signed between ADNOC, Masdar, and BP will serve to deepen the strategic relationship between our countries. We look forward to building upon this legacy to strengthen both countries’ ambitions to generate economic growth through low-carbon initiatives.”

Taking place on 19 October, the UK’s one-day Global Investment Summit is aimed at securing foreign investment for the UK’s future green industries.

Article by Amanda Jasi

Staff Reporter, The Chemical Engineer

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