Abu Dhabi Future Energy Company PJSC – Masdar, a prominent UAE clean energy firm, has signed an agreement with TotalEnergies to explore the development of a commercial green hydrogen-to-methanol-to-Sustainable Aviation Fuel (SAF) project.
The initiative’s goal is commendable: decarbonizing emission-intensive industries. However, the path from green hydrogen to methanol and then to SAF involves complex processes that are currently expensive and energy-intensive. While the project’s intent aligns with global sustainability goals, the practical challenges of scalability and economic viability need to be critically examined.
The agreement follows a successful test flight conducted by Masdar and TotalEnergies during COP28 in December 2023, demonstrating the potential of converting methanol into SAF. While this test flight is a significant milestone, it remains a small-scale demonstration. The transition from a successful test to widespread commercial application requires substantial investment, technological advancement, and supportive regulatory frameworks.
Masdar’s Green Hydrogen business has focused on aviation, forming strategic partnerships over the past three years to advance SAF development. The UAE has set a voluntary target to supply 1% of aviation fuel at national airports with locally produced SAF by 2031 and is working towards establishing a national regulatory framework for SAF to support long-term growth in the sector.
The 1% target, while a step in the right direction, is modest. For significant impact, more ambitious targets and comprehensive policies are necessary. The global aviation industry needs rapid decarbonization strategies to meet international climate goals, and a more aggressive approach from major players like the UAE could set a stronger precedent.
Alignment with Abu Dhabi’s Low Carbon Hydrogen Policy
The project aligns with Abu Dhabi’s Low Carbon Hydrogen Policy, which aims to bolster low-carbon hydrogen as a key energy source and supports the UAE National Hydrogen Strategy’s goal of making the UAE a global leader in low-carbon hydrogen by 2031. While these policies provide a supportive framework, their successful implementation will depend on overcoming significant technical and economic hurdles.
Since its inception in 2006, Masdar has been instrumental in advancing the UAE’s sustainability and climate action goals, having developed and partnered on projects in over 40 countries. The company aims to expand its renewable energy capacity to 100GW by 2030 and become a leading producer of green hydrogen by the same year.
Masdar’s target of 100GW renewable energy capacity by 2030 is ambitious. Achieving this goal will require massive investments, advancements in technology, and overcoming infrastructure challenges. The commitment to becoming a leading producer of green hydrogen is equally ambitious and fraught with challenges, including the current high costs of green hydrogen production and the need for extensive infrastructure development.
