Korea Electric Power [015760:KS], Samsung C&T [028260:KS], and Korea Western Power have inked an agreement to construct a USD1bn green hydrogen and ammonia production plant in the United Arab Emirates (UAE), as reported by Reuters on June 3. The three companies will join hands with UAE’s energy development company Petrolyn Chemie to build the factory with an annual green ammonia production capacity of 200,000 tons. The plant will be built in the KIZAD Industrial Area near the capital Abu Dhabi in two phases, with the first phase producing 35,000 tons. According to Petrolyn, the participating companies will achieve their respective net-zero vision through the project.
The project accords with UAE’s intention to transform from a petrostate to a renewable and hydrogen powerhouse. Last October, the UAE became the first nation in major petrostates to announce a net-zero emissions target for 2050. In the coming decades, the country plans to diversify its energy export by moving from fossil fuels to renewable energies and clean hydrogen. As part of UAE’s roadmap to net-zero emissions, the country aims to occupy a 25% share in the global low-carbon hydrogen market by 2030. On June 5, UAE’s state-owned energy company Masdar signed an agreement to develop four gigawatts (GW) of renewable and green hydrogen projects in Azerbaijan. So far this year, Masdar has signed a set of agreements for renewable and green hydrogen projects with an accumulated capacity of over ten GW.