Abu Dhabi National Oil Company (Adnoc) and US-based energy services company Baker Hughes have signed an agreement to collaborate on the development and commercialisation of technology solutions for green and low-carbon hydrogen and graphene to drive sustainable energy in the United Arab Emirates (UAE).
The partnership aims to accelerate the deployment of sustainable energy solutions and support the UAE’s target of reaching net-zero emissions by 2050.
As part of the agreement, Adnoc will work with Baker Hughes as a strategic partner to study and pilot the implementation of solutions from its hydrogen portfolio. Adnoc is proactively pursuing a strategy to accelerate the production and deployment of low-carbon and renewable hydrogen across its operations. The company has already allocated $15 billion to invest in clean power, carbon capture and storage, energy efficiency, and other measures to achieve its low-carbon growth strategy.
Graphene, a promising agent to help decarbonise hard-to-abate sectors, will also be studied and developed under the partnership. Adnoc will leverage Baker Hughes’s hydrogen expertise and portfolio to test and develop solutions to produce low-cost green hydrogen and graphene at scale, helping to decarbonise its operations. Baker Hughes has invested in growth-stage decarbonisation technologies across the graphene, methane pyrolysis, and next-generation electrolysis spaces.
Adnoc is already a major producer of hydrogen and ammonia, producing over 300,000 tonnes of hydrogen annually at its Ruwais Industrial Complex. The UAE is investing Dh600 billion ($163.5 billion) in clean and renewable energy projects over the next three decades, and Adnoc aims to be a significant contributor to this goal.
Collaboration is crucial to supporting and accelerating the growth of low-carbon energy sources, according to Lorenzo Simonelli, Chairman and CEO of Baker Hughes. The partnership between Adnoc and Baker Hughes is an example of how major players in the energy sector can work together to develop sustainable solutions to reduce carbon emissions and mitigate climate change.
Potential challenges surrounding the partnership include the cost and scalability of sustainable energy solutions and the need for more significant investment to support the transition to a low-carbon economy. However, the partnership is a significant step towards achieving the UAE’s net-zero emissions goal and demonstrates the commitment of Adnoc and Baker Hughes to developing sustainable energy solutions for a cleaner, more sustainable future.
