French energy company Engie and Abu Dhabi-based renewable energy developer Masdar have signed a strategic alliance agreement to explore the co-development of a UAE-based green hydrogen hub .
The parties are looking to develop projects with a capacity of at least two gigawatts by 2030. Therefore, they will invest a total of $5 billion in the region.
Sultan Ahmed Al Jaber , UAE minister, ADNOC CEO, and Masdar chairman, and Catherine MacGregor , ENGIE CEO, signed the deal.
This partnership aims to capture synergies and complementarities between the two companies. Masdar is an investor and developer of renewable energy projects. On the other hand, ENGIE’s position in green hydrogen deployment can establish an early mover position in the market.
By leveraging existing infrastructure, the companies will initially target local supply. The end goal, however, is to expand capacity to create a giga-scale green hydrogen hub for the GCC, with the potential to export to other markets.
MacGregor said: “We are very pleased to partner with Masdar to make a direct contribution to the UAE’s Net Zero 2050 strategic initiative. This strategic alliance illustrates ENGIE’s goals for the long-term development of renewable hydrogen, an essential tool for the energy transition.”