London, (Business News Report)|| The UAE’s Kimi Petroleum Company announced that South Korean companies have signed a contract to build a green hydrogen plant in the UAE.
Kimi Petroleum Corporation also said that three South Korean companies have signed a contract to build a green hydrogen plant at a cost of $1 billion.
The company also added that it will build with Korea Electric Power, Samsung C&T and Korea Western Power the plant that can produce up to 200,000 tons of green ammonia annually.
Green hydrogen, which is obtained by passing electricity produced from renewable sources through water to separate hydrogen from oxygen, is considered by some to be a primary fuel for energy users looking to reduce greenhouse emissions, according to Reuters.
The plant is scheduled to be built in two phases in the Khalifa Industrial Zone near the capital Abu Dhabi, with the first phase producing 35,000 tons before the second phase raises production to full capacity.
In a separate context, Farid Al-Awlaki, Executive Director of the Power Generation Business Unit at the Abu Dhabi National Energy Company (TAQA), confirmed that green hydrogen projects are progressing very well, adding that green hydrogen, which is known as “future oil”, will play an important role in the region.
Al-Awlaki added in an interview with the Emirates News Agency on the sidelines of his participation in the World Utilities Conference 2022: “We are now in the technical feasibility stage for the two green hydrogen projects that were announced in partnership with Emirates Steel and Abu Dhabi Ports.”
The two partnerships also include TAQA’s cooperation with Emirates Steel to develop a large-scale green hydrogen project to enable the first green steel production plant in the Middle East and North Africa region, and its partnership with Abu Dhabi Ports to develop a green ammonia manufacturing and export facility on an industrial scale in Abu Dhabi.
TAQA had announced that green hydrogen would form a valuable part of the company’s 2030 strategy for sustainable growth, which includes increasing its total power generation capacity from 18 to 30 gigawatts in the UAE and adding up to 15 gigawatts in global assets.
This capacity increase will focus on renewable energy – particularly solar photovoltaics – to make up more than 30% of the power generation portfolio by 2030, compared to 5% currently.