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Press Release18 January 2021Siemens EnergyAbu Dhabi
Siemens Energy to drive the development of green hydrogen economy in the Middle East
Strategic Partnership with Mubadala
On 17 January, Siemens Energy and Mubadala
Investment Company (Mubadala), the Abu Dhabi state-owned global investment firm, signed a Memorandum of Understanding (MoU) with the intention of creating
a strategic partnership to drive investment and development of advanced
technology, manufacture of equipment, and green hydrogen and synthetic fuel
production. The initial focus of activity will be in Abu Dhabi and over time it
is planned that this will be extended to other international markets.
“Mubadala
is strongly committed to the development of the UAE’s hydrogen economy, and we
are pleased to be extending our relationship with Siemens Energy in this
important emerging energy sector, said Musabbeh Al Kaabi, Chief Executive
Officer of UAE Investments at Mubadala Investment Company. “Through this
strategic partnership, we expect to be able to leverage Abu Dhabi’s strong
foundations for the production and sale of green hydrogen, prove a strong
business case and attract investment for the development of new facilities, and
establish Abu Dhabi as a reliable supplier of green hydrogen to emerging global
markets.”
Within the partnership the companies will
work closely towards the following goals:
- Utilizing renewable energy to produce green hydrogen and derivatives, including synthetic fuels, providing clean and transportable energy to fuel new hydrogen-based ecosystems that are supplied from the UAE
- Establish Abu Dhabi as a world class player in green hydrogen and synthetic fuels.
- Jointly advance technology and drive down the costs of green hydrogen and synthetic fuels production
- Enable Siemens Energy and Mubadala to access emerging hydrogen markets and create value for both parties
The first initiative under this agreement and the broader Abu
Dhabi Hydrogen Alliance will be the consideration of a demonstrator plant
located at Masdar City, to be developed under a specific agreement between Siemens
Energy and Masdar, together partners.
Hydrogen demonstrator plant in Masdar City
Together with Masdar, one of the world’s leading renewable
energy companies, Siemens Energy announced that it is joining forces with the Abu Dhabi Department of Energy, Etihad Airways, German Lufthansa, Marubeni Corporation and Khalifa University on an
ambitious project that will help pave the way for the development of the UAE’s
green hydrogen economy.
The organizations signed an MoU with the intent to
establish a photovoltaic (PV) powered electrolyzer facility, to demonstrate
state-of-the-art green hydrogen production technology and present sustainable
fuel use cases.
The first phase of the demonstration program will focus on
the production of green hydrogen for passenger cars and buses in the Masdar
City area. In parallel, a kerosene synthesis plant will be built to convert the
majority of the green hydrogen into sustainable aviation fuel. In the second
phase of the program, the production of decarbonized fuels for the maritime
sector will be explored. Through the program, the organizations involved can
help to significantly reduce the UAE’s carbon footprint, create domestic demand
for sustainable fuels, and establish a local knowledge and industry base for
their production.
“Green hydrogen has
the potential to become the foundation fuel for a future clean economy, and
will be a game-changer for decarbonisation strategies as we look to achieve
climate goals and deliver a more sustainable future for all,” said Mohamed
Jameel Al Ramahi, Chief Executive Officer, Masdar. “Masdar has been exploring
hydrogen production and generation for more than a decade – today we believe
the time is right to accelerate investment in this technology.”
Thomas Bareiß, Parliamentary State Secretary
at the Federal Ministry for Economic Affairs and Energy: "I am pleased to
witness these cooperation agreements that underline the strategic partnership
between Germany and the UAE in the field of hydrogen. It offers great potential
for decarbonization and economic cooperation between our countries and
companies. The new agreements are not only groundbreaking with regard to goals
within the framework of our hydrogen strategy, they also underline the value of
the German-Emirati energy partnership, which the Federal Ministry for Economic
Affairs and Energy is supporting. Already since 2016, sustainable, efficient
and renewable energy technologies and services have been actively promoted
through bilateral exchanges."
“These
significant agreements highlight the importance of collaboration with a strong
and diverse group of partners across industrial sectors, to drive forward and realize
the potential of green hydrogen in decarbonization,” said Armin Schnettler,
Executive Vice President of the New Energy Business at Siemens Energy. “The
UAE’s visionary leadership is creating the solid foundations for a successful
green hydrogen economy and is the base for a new ecosystem.”
“These
agreements highlight the important of strong partnerships as well as the
determination by the governments to invest in innovative technologies to drive
sustainable growth and decarbonization,” said Dietmar Siersdorfer, Managing
Director Siemens Energy Middle East. “We are proud that Siemens Energy is being
recognized as the partner of choice, having pioneered this space, generating
green hydrogen from renewable energy using proton exchange membrane
electrolysis. We look forward to developing and leveraging the many
applications of green hydrogen throughout the value chain.”
Background on Hydrogen
Hydrogen,
the most abundant element in the universe can be blended with, or used as a
substitute for, fossil fuels in a wide variety of applications. Green hydrogen
– produced through renewable energy – is likely to play a critical role in
decarbonization strategies in several industries. Siemens Energy is a pioneer
in Green Hydrogen technology, using Proton Exchange Membrane (PEM) technology
to convert electricity from renewables into ‘green’ hydrogen and oxygen.
There’s no waste, or CO2 emissions. The hydrogen can then be stored for use in
fuel-cell cars, as an industrial gas or even to fuel a power plant.
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Siemens Energy is one of the world’s leading energy technology companies. The company works with its customers and partners on energy systems for the future, thus supporting the transition to a more sustainable world. With its portfolio of products, solutions and services, Siemens Energy covers almost the entire energy value chain – from power generation and transmission to storage. The portfolio includes conventional and renewable energy technology, such as gas and steam turbines, hybrid power plants operated with hydrogen, and power generators and transformers. More than 50 percent of the portfolio has already been decarbonized. A majority stake in the listed company Siemens Gamesa Renewable Energy (SGRE) makes Siemens Energy a global market leader for renewable energies. An estimated one-sixth of the electricity generated worldwide is based on technologies from Siemens Energy. Siemens Energy employs more than 90,000 people worldwide in more than 90 countries and generated revenue of around €27.5 billion in fiscal year 2020.