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.



After Trump’s Victory, Arab Demands for Competitive Advantages Due to Regional Tensions

Donald Trump addresses his supporters at the West Palm Beach Convention Center in Florida on Wednesday. (EPA)
Donald Trump addresses his supporters at the West Palm Beach Convention Center in Florida on Wednesday. (EPA)
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After Trump’s Victory, Arab Demands for Competitive Advantages Due to Regional Tensions

Donald Trump addresses his supporters at the West Palm Beach Convention Center in Florida on Wednesday. (EPA)
Donald Trump addresses his supporters at the West Palm Beach Convention Center in Florida on Wednesday. (EPA)

With the election of Donald Trump as US president, the global economy has gained direction for the coming years. Trump’s policies favor corporate tax cuts, increased investment, and expansionary monetary policies. He also promotes local production to boost job creation, which involves imposing significant tariffs on trade partners, particularly in Asia. This approach could trigger a trade war, affecting inflation in both the US and worldwide.

The US economy is already grappling with high prices, slower economic growth, and rising unemployment, alongside a national debt nearing 99% of GDP. This backdrop underscores the importance of economic issues in the recent election.

For the new US administration, domestic concerns will not be the sole priority. Ongoing geopolitical tensions, especially recent Middle Eastern conflicts, will also impact the US economy. To gain regional insights, Asharq Al-Awsat consulted economists from various Arab nations on their expectations and requests from the US president regarding the Middle East.

Priority of Regional Stability

Dr. Mohamed Youssef, an Egyptian economist, emphasized that regional stability is crucial, benefiting the economy and paving the way for resolving complex issues like the Nile Dam dispute affecting Egypt. He highlighted the American role in fostering calm in the region.

Iraqi economist Durgham Mohamed Ali noted that US relations vary across the Middle East; while Lebanon and Yemen remain outside current US alliances, Sudan and Somalia require international aid to rebuild infrastructure.

Competitive Advantage for Arab Countries

Ahmed Moaty, a global markets expert from Egypt, suggested that reduced US tariffs would improve Arab economies’ competitiveness. However, he pointed out the American high debt could motivate the administration to impose tariffs to protect local industries and reduce imports. Ali observed that US tariffs are interest-driven and selective, favoring allies like Japan, Taiwan, and South Korea while being stringent toward BRICS members, such as China, Brazil, and South Africa. He linked tariff policies to regional geopolitics, especially the conflicts involving Israel, Lebanon, Palestine, and Iran, which could influence US economic decisions.

Dr. Mohamed Youssef also argued that easing US-China competition could benefit the global economy, as high tariffs on Chinese goods reduce China’s growth, decreasing demand for key commodities like oil.

Ibrahim Al-Nwaibet, CEO of Saudi Arabia’s Value Capital, predicted that a Republican win could positively impact oil and interest rates, revitalizing the petrochemical and trade finance sectors.

On currency, Moaty noted the strong US dollar pressures emerging markets, especially in the Middle East. He suggested offering US Treasury bonds with higher yields to Arab countries as a counterbalance. Ali added that the dollar’s strength poses challenges for countries heavily reliant on US currency amid global liquidity shortages.

The BRICS Bloc

Ali also mentioned the high levels of US debt, explaining: “In general, the entire world is concerned about rising US debt, slowing growth rates... and is wary of the BRICS alliance, which some Arab countries hope to join. The question remains whether a cold economic war will ensue.”

Youssef also discussed the BRICS, which could play a role in attracting the new US president’s attention to countries joining the alliance. He added: “This may provide new competitive advantages for countries in the region, particularly as countries like Egypt, the UAE, and Iran recently joined BRICS, while Saudi Arabia is still evaluating the benefits of such move.”