UAE Global Aluminium, the largest industrial company outside the UAE's oil and gas industry, has signed an agreement with the Ministry of Energy and Infrastructure to join the UAE's Hydrogen Leadership Initiative.

Launched by the ministry during Cop26 in Glasgow in 2021, the programme aims to realise the country's ambition to become a global leader in low-carbon hydrogen as global demand for cleaner fuels surges amid decarbonisation efforts. As a member, EGA will explore collaboration opportunities across industries and further research and develop future uses of hydrogen in decarbonization, the company said in a statement. It will also explore the technical and economic potential of hydrogen in aluminium production and in local supply chains.

EGA chief executive Abdulnasserbin Kalban said the use of aluminium plays a key role in the decarbonisation of other industries across the economy, making the decarbonisation of aluminium production even more important for our own industry. Replacing natural gas with hydrogen is part of a potential solution and we look forward to working with other members of the Hydrogen Leadership Initiative, with the Ministry of Energy and Infrastructure to accelerate our work in this area, as well as to support the UAE’s Net Zero 2050 strategy initiative.

UAE Minister of Energy and Infrastructure Suhail Al Mazrouei said earlier in 2022 that the UAE aims to capture about 25% of the global hydrogen market and is in discussions with many countries to export it. The UAE has joined the International Partnership on Hydrogen and Fuel Cells in the Economy, an international government partnership focused on promoting and accelerating the transition to clean and efficient energy and mobility systems using hydrogen and fuel cell technology in different industries.

In June, the Abu Dhabi Energy Department also said it was working on a hydrogen energy policy with new regulations and standards aimed at becoming a leader in the international hydrogen energy market. In 2021, Abu Dhabi National Oil Company, Mubadala and industrial holding company ADQ signed a preliminary agreement to form a hydrogen alliance focused on low-carbon green and blue hydrogen as part of the UAE's energy diversification efforts.

Hydrogen comes in many forms, including blue, green, and gray. The blue and grey hydrogen is produced from natural gas, while the green is produced by splitting water through electrolysis. The global hydrogen industry is expected to be worth $183 billion by 2023, up from $129 billion in 2017, according to Fitch Solutions. French investment bank Natixis estimates that hydrogen investment will exceed $300 billion by 2030.

By joining the Hydrogen Leadership Programme, EGA will also join the Abu Dhabi Hydrogen Alliance and the National Hydrogen Technology Council, which aims to assess the role of hydrogen in the energy transition and explore potential export opportunities. More than seven projects are underway as part of the Hydrogen Leadership Initiative, targeting a 25 percent market share in key export markets such as Japan, South Korea, Germany and India, as well as other high-potential markets in Europe and East Asia.

In 2021, EGA signed a preliminary agreement with GE to develop a roadmap to decarbonize the company's natural gas turbines, including switching to hydrogen. Hydrogen has the potential to replace natural gas as a carrier of thermal energy, such as foundry furnaces and steam boilers and turbines for EGA, the company said.

Aluminum smelting is energy-intensive, and the electricity required to generate electricity accounts for more than half of the global aluminum industry's greenhouse gas emissions. Co-owned by Abu Dhabi's strategic investment arm Mubadala Investment Company and Dubai Investment Company, EGA operates aluminium smelters in Jebel Ali and Al Taweelah, an oil refinery in Al Taweelah and a bauxite mine and related export facilities in Guinea. Mr Al Mazrouei said the agreement by the EGA to join the Hydrogen Leadership Initiative will create a new model of constructive cooperation to strengthen hydrogen's position as a key enabler for decarbonisation of carbon-intensive industries. He stressed that the ministry is ready to provide all its partners with the necessary support at the local, regional and global levels to promote and develop the clean energy sector.Editor/XingWentao