Broaden Energy invests $272m to set up hydrogen equipment plant in Abu Dhabi

The Abu Dhabi Department of Economic Development has signed a preliminary agreement with energy solutions company Broaden Energy, which will invest Dh1 billion ($272.3 million) to open a hydrogen equipment manufacturing centre in the emirate.

This will be the first hydrogen equipment manufacturing complex in Abu Dhabi, enhancing the UAE's energy infrastructure.

The centre is expected to support the objectives of Abu Dhabi Industrial Strategy by promoting sustainability and developing value chains. It will boost the region’s hydrogen economy, create new job opportunities and stimulate economic development and innovative industrial solutions, Added said on Friday.

The hydrogen complex is central to Added’s efforts in supporting the UAE’s Net Zero 2050 targets through innovative solutions, said Arafat Al Yafei, executive director of Industrial Development Bureau, Added’s arm to develop and regulate the industrial sector.

“Abu Dhabi’s thriving industrial sector places sustainability at the forefront of its activities and continues to attract investments in targeted industries,” he added.

Added said the project aligns with the strategic goals of the UAE National Hydrogen Strategy and the Net Zero 2050 Strategy.

The National Hydrogen Strategy aims to make the UAE a top 10 producer of green hydrogen by 2031 with an output target of 1.4 million tonnes per year.

The Emirates also plans to establish hydrogen hubs to accelerate industry adoption of hydrogen, cultivating a supply chain and enabling infrastructure to attract global energy players.

“Establishing the first hydrogen equipment manufacturing complex in Abu Dhabi is a testament to our commitment to advancing renewable energy and supporting the UAE's strategic vision,” Adnan Sokolija, chief executive of Broaden Energy, said.

Hydrogen, which can be produced from renewable energy and natural gas, is expected to become a critical fuel as economies and industries transition to a low-carbon world.

It comes in various forms, including blue, green, and grey. Blue and grey hydrogen are produced from natural gas, while green is derived from splitting water molecules through electrolysis.

Heavy investment in hydrogen

Gulf countries have been heavily investing in renewable energy while simultaneously lowering emissions from their oil and gas operations as part of their plans to achieve net-zero emissions by 2050 or beyond.

The Emirates, the Arab world’s second-largest economy, aims to reach hydrogen production of 15 million tonnes annually by 2050. The country is planning to develop at least two hydrogen production hubs, or oases, by 2031, each of which will produce clean electricity, and increase the number to five by 2050.

It will establish a hydrogen centre for research and development in 2031, which will be developed into a recognised innovation centre globally for hydrogen by 2050, Suhail Al Mazrouei, UAE Minister of Energy and Infrastructure, said in July last year.

In 2021, the UAE unveiled its Net Zero 2050 Strategic Initiative, a Dh600 billion plan to invest in clean and renewable energy sources over the next three decades.

It was the first Gulf country to commit to net-zero emissions by 2050.

In November, Adnoc launched the region’s first “high-speed” green hydrogen pilot refuelling station to test a fleet of hydrogen-powered vehicles. The Adnoc Distribution-operated station in Masdar City produces green hydrogen from water using an electrolyser powered by clean grid electricity, the company said.