Masdar-AD Ports collab seeks to develop green hydrogen hub in KEZAD

UAE-based port operator AD Ports Group and compatriot clean energy company Masdar have signed a memorandum of understanding (MoU) to jointly explore the development of a green hydrogen production hub within the Khalifa Economic Zones Abu Dhabi (KEZAD).

Courtesy of Masdar

The MoU, signed on the sidelines of the UN Climate Change Conference COP28 in Dubai, covers the hydrogen production hub that will serve both domestic and export markets, part of the UAE’s National Hydrogen Strategy that aims to scale up local hydrogen production to 1.4 million tons per annum (mtpa) by 2031, and 15 mtpa by 2050.

The planned hydrogen production hub could include export terminals of green products to overseas ports, which would attract more investments into the green hydrogen value chain in Abu Dhabi, as well as offer current and future KEZAD and Khalifa Port tenants the opportunity to develop green industries, the partners stated.

Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said: “The signing of this MoU with Masdar is a monumental step for AD Ports Group. It aligns perfectly with our green H2 valley strategy, amplifying our efforts to create a robust UAE H2 platform for developing green and blue hydrogen projects both domestically and globally.

“Furthermore, the MoU not only exemplifies our shared ambition with Masdar to establish Abu Dhabi as a vital international hub for the production and export of hydrogen and its derivatives but also echoes our wise leadership’s vision to diversify the UAE’s economy and bolster our global competitiveness, especially within markets that increasingly prioritise environmentally friendly and sustainable practices.”

Mohamed Jameel Al Ramahi, CEO of Masdar, added: “As a global clean energy pioneer with nearly two decades of experience in renewables, Masdar adopts a smart ‘first-mover’ approach, entering markets at an early stage and building scalable platforms. This exciting collaboration with AD Ports Group exemplifies all of those principles.

“Green hydrogen has enormous potential to decarbonize hard-to-abate sectors and accelerate the journey to net zero. Given more than 80 percent of global trade is transported by sea, partnerships like this are vital to ensure integrated green hydrogen value chains. Working with AD Ports Group, we’ll explore measures to further decarbonize hard-to-abate sectors by encouraging the use of green hydrogen in port operations and as vessel fuels, while facilitating the import and export of hydrogen.”

During COP28 in Dubai, Masdar also entered into a non-binding heads of terms (HoT) development agreement with OMV, the integrated company for energy, fuels & feedstock, chemicals, and materials, to explore in partnership the production of green hydrogen for the decarbonization of industrial processes in OMV’s refineries.

In line with UEA’s hydrogen strategy, Masdar is targeting an annual global green hydrogen production capacity of up to 1 million tons by 2030 and has signed and executed several global collaboration agreements to meet this goal.

One of its most recent agreements was signed with its Dutch partners Port of Amsterdam, SkyNRG and Zenith Energy Terminals to assess the feasibility of a dedicated liquefied green hydrogen supply chain for Masdar-produced hydrogen to the port of Amsterdam.