UAE, Germany Boost Hydrogen Collaboration

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.

Turkish inflation was higher than expected at 47.09% annually and 2.24% on a monthly basis in November, official data showed on Tuesday, potentially reducing the prospect of an interest rate cut later this month.

Prices of food and non-alcoholic drinks jumped 5.1% from the previous month, the Turkish Statistical Institute data showed, underlining the central bank's continued struggle against years of high inflation. Health-related prices rose 2.69%.

In a Reuters poll, the consumer price index inflation rate was expected to slow to 46.6% on an annual basis, while the monthly figure was seen at 1.91%, mainly due to food and medicine prices.

Although above expectations, annual inflation in November was at its lowest level since mid-2023. In October, annual inflation was 48.58% with the monthly rate at 2.88%.

The central bank has hiked rates by 4,150 basis points since June last year as part of an abrupt shift to economic orthodoxy, and has kept its policy rate steady at 50% since March.

It is watching monthly inflation closely as it decides when to cut its main interest rate, with expectations having grown in recent weeks that easing could come as soon as December.

Delaying rate cuts until next year, after "critical decisions" on the minimum wage and other administered prices "would be more appropriate", said Haluk Burumcekci, founding partner at Burumcekci Consulting, of an expected Jan. 1 rise to minimum wage.

But he added the central bank's latest policy statement "suggests that rate cuts are a serious option" for December.

After its policy meeting last month, the bank said it would set its rate to ensure the tightness required by the projected disinflation path, setting the stage for a cautious easing cycle.

The bank had also predicted that food would elevate overall inflation in November. Turkish Vice President Cevdet Yilmaz said on Tuesday that while food inflation remained high, aside from that there was a broadly more positive trend.

The Turkish lira was little changed after the data at 34.7505 to the dollar, having earlier touched a record low.

Economists had flagged medicine prices as an inflation driver in November since the government late last month hiked by 23.5% the euro rate for imported medicines.

The domestic producer price index was up 0.66% month-on-month in November for an annual rise of 29.47%, according to the data.

The Reuters poll showed annual inflation falling to 44.8% by year-end, close to the central bank's target of 44%. It also showed inflation falling to 26.5% at end-2025, compared to the central bank's view of 21%.

UAE, Germany Boost Hydrogen Collaboration