UAE, Germany Boost Hydrogen Collaboration

ADNOC and German officials stand for the family photo during the signing ceremony (WAM)
ADNOC and German officials stand for the family photo during the signing ceremony (WAM)
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UAE, Germany Boost Hydrogen Collaboration

ADNOC and German officials stand for the family photo during the signing ceremony (WAM)
ADNOC and German officials stand for the family photo during the signing ceremony (WAM)

Abu Dhabi National Oil Company (ADNOC) signed a new memorandum of understanding (MoU) and joint study agreements (JSA) with counterparts in Germany to boost and deepen collaboration in clean hydrogen.

The agreements were announced during the visit of the German Federal Minister for Economic Affairs and Climate Action, Robert Habeck, to the UAE.

They build upon the longstanding Emirati-German Energy Partnership and the Ministerial Emirati-German Hydrogen Task Force that was inaugurated in November 2021.

UAE's Minister of Industry and Advanced Technology and ADNOC Managing Director Sultan al-Jaber said the agreements would help enable and accelerate the global energy transition.

ADNOC has ambitious growth plans for clean hydrogen, a critical tool in efforts to decarbonize hard-to-abate sectors, which we are actively delivering to meet demand in Asia and, through partnerships, Europe.

"We remain committed to working with like-minded partners across the public and private sectors to implement tangible projects that will supply the world's energy needs while reducing carbon emissions and the carbon intensity of the energy that supports our everyday lives," asserted Jaber.

ADNOC seeks to enter European markets through Germany. It is expected to accelerate further the delivery of UAE's Hydrogen Leadership Roadmap, which has identified Germany as a critical export market to provide up to 25 percent of the country's imported clean hydrogen.

As part of its ambitious decarbonization drive, the German government's National Hydrogen Strategy expects clean hydrogen demand of up to 3 million tonnes per annum (Mtpa) by 2030, of which around 60 percent is expected to be imported. Notably, demand may grow to over 11 Mtpa by 2050.

Habeck underlined the importance of the Emirati-German cooperation for advancing on climate action, saying: "The accelerated scale-up of hydrogen supply chains is key for our transition to sustainable energy and for achieving the decarbonization goals in line with our commitments under the Paris Agreement. Today's agreements signal a decisive milestone towards meeting our climate action ambitions."

Meanwhile, a spokesman for the German Economy Ministry told Reuters that Habeck did not speak with ADNOC about increasing oil production,

"We haven't talked about oil except OPEC. In this respect, the appeal that the production volume is increased in such a way that the people of the world can pay for this oil as long as we need it," Habeck told journalists after a meeting with the company.

During the minister's visit, cooperation agreements and low-carbon demonstration cargos were signed, including Individual contracts with German companies Aurubis, RWE, GETEC, and STEAG to explore opportunities for collaboration in low-carbon and renewable hydrogen derivatives, including the execution of the first low-carbon (blue) ammonia demonstration cargos, produced by Fertiglobe, from the UAE to Germany in 2022 for use in a variety of applications.

Fertiglobe is a critical strategic partner for ADNOC in ammonia, and ADNOC will provide low-carbon ammonia to its partners in Germany that Fertiglobe produces at its Fertil plant in the Ruwais Industrial Complex in Abu Dhabi.

The sales represent a further milestone in the planned scale-up of blue ammonia production capabilities in Abu Dhabi.

ADNOC and its partners invest in a new world-scale 1 million metric tonnes per annum blue ammonia project at TA'ZIZ in Ruwais, subject to regulatory approvals.

ADNOC is also exploring with its partners various opportunities in green hydrogen.

Memorandum of Understanding between ADNOC, HHLA, and AD Ports Group: ADNOC entered into an MoU with HHLA, a Hamburg-based logistics and transportation company specializing in port throughput and container and transport logistics, and AD Ports Group to work on realizing Hamburg's ambition to become a hydrogen import hub in Germany.

Under the agreement, the parties will explore opportunities to increase the capabilities of the technology currently used to transport hydrogen using organic liquids to help meet the growing global demand for hydrogen transportation.



Bank of England Cuts Main Interest Rate by a Quarter-point to 4.75%

Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
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Bank of England Cuts Main Interest Rate by a Quarter-point to 4.75%

Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS

The Bank of England cut its main interest rate by a quarter of a percentage point on Thursday after inflation across the UK fell below its target rate of 2%.
The bank said its rate-setting panel lowered the benchmark rate to 4.75% — its second cut in three months — though its governor Andrew Bailey cautioned that interest rates would not be falling too fast over coming months.
“We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much,” he said. “But if the economy evolves as we expect it’s likely that interest rates will continue to fall gradually from here.”
In the year to September, UK inflation stood at 1.7%, its lowest level since April 2021 and below the central bank’s target rate of 2%, The Associated Press reported.
Central banks worldwide dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up, first as a result of supply chain issues built up and then because of Russia’s full-scale invasion of Ukraine which pushed up energy costs.
As inflation rates have recently fallen from multi-decade highs, the central banks have started cutting interest rates.
Economists have warned that worries about the future path of prices following last week's tax-raising budget from the new Labour government and the economic impact of US President-elect Donald Trump may limit the number of cuts next year.
The decision comes a week after Treasury chief Rachel Reeves announced around 70 billion pounds ($90 billion) of extra spending, funded through increased business taxes and borrowing. Economists think that the splurge, coupled with the prospect of businesses cushioning the tax hikes by raising prices, could lead to higher inflation next year.
The rate decision also comes a day after Trump was declared the winner of the US presidential election. He has indicated that he will cut taxes and introduce tariffs on certain imported goods when he returns to the White House in January. Both policies have the potential to be inflationary both in the US and globally, thereby prompting Bank of England policymakers to keep interest rates higher than initially planned.