The Abu Dhabi Department of Economic Development (ADDED) has forged a collaboration with UK-based private equity fund HYCAP to facilitate the production, storage, and transportation of green hydrogen, as reported by Abu Dhabi’s press agency. This partnership lays the foundation for the development of an industrial complex by ADDED’s Industrial Development Bureau (IDB) in conjunction with HYCAP. The envisioned complex will encompass an electrolysis plant, a hydrogen storage facility, and hydrogen tankers for transportation, thereby contributing to the advancement of renewable energy sources.

Such initiatives are integral to the alliances being cultivated with leading global entities, aimed at empowering the manufacturing sector to achieve the objectives outlined in the Abu Dhabi Industrial Strategy (ADIS). Emirati officials aspire to position the UAE among the top ten producers of green hydrogen by the year 2031, boasting an annual output capacity of 1.4 million tonnes. Green hydrogen, hailed as a renewable energy source, holds promise for mitigating greenhouse gas emissions. In this context, public-private partnerships (PPPs) comprising governments and corporations play an increasingly pivotal role in propelling forward the agenda for green energy.

While the proposed industrial complex represents a significant step towards producing and storing green hydrogen in the UAE, it is not the first endeavor of its kind in the region. In May 2021, German energy company Siemens Energy proposed the construction of a green hydrogen plant in Dubai. Initially dubbed as the “first industrial-scale, solar-driven green hydrogen facility in the Middle East and North Africa”, this project harnesses solar and wind energy to generate green hydrogen, signaling a departure from the nation’s heavy reliance on fossil fuels.

As part of the project, HYCAP will create infrastructure for hydrogen production, storage, and transportation, along with facilities for manufacturing electrolyzers, electric chargers, fuel cells, and buses and trucks. The overarching strategy is to align the supply and demand for hydrogen locally, scaling up to create a viable proposition for export sales growth.

The National Hydrogen Strategy aims to position the UAE as one of the leading green hydrogen producers by 2031, targeting an annual production of 1.4 million tonnes and the establishment of hydrogen hubs. In a significant move, HYCAP Group established its regional headquarters in the Abu Dhabi Global Market (ADGM) in November 2023, further solidifying its commitment to driving forward the green hydrogen agenda in partnership with the UAE.

HYCAP is a private equity fund dedicated to investing in initiatives aimed at achieving net zero emissions and fostering the growth of the hydrogen economy for a sustainable future. At the core of the fund's mission is the aspiration to spearhead the energy transition through strategic investments in the burgeoning green hydrogen sector.