UAE to invest $23 billion in next-gen energy sources over next five years

The UAE is planning to invest $23 billion over the next five years in next-generation energy solutions such as hydrogen and ammonia, seeking to capture 5% of the global clean hydrogen production by 2030, according to the national oil company.

Besides developing oil and natural gas as part of its existing operations, the Abu Dhabi National Oil Company is also set to produce hydrogen and ammonia in the Emirates and the US state of Texas. The announcement comes against a backdrop of a deepening climate crisis.

UAE balancing fossil fuels and next-gen energy solutions

Hydrogen and ammonia are currently in the limelight because they do not emit greenhouse gases during combustion. The company is going to produce blue hydrogen – derived from fossil fuels – and green hydrogen – derived from clean energy sources.

The UAE is planning to process both the blue hydrogen and green hydrogen into ammonia – as it is easier to transport – and subsequently export it to Japan, South Korea and Europe, among other places. The Japanese government also plans to promote ammonia imports.

Separately, the UAE is seeking to capture and store up to 10 million tonnes of carbon dioxide per year by 2030. The Gulf state already operates facilities that capture 800,000 tonnes per year and is commercialising projects holding a capacity of 3 million tonnes.

The UAE is trying to balance the production of fossil fuels and the supply of next-generation energy solutions. For example, the operation of offshore oil fields is going to be electrified to reduce greenhouse gas emissions from oil production.

UAE Net Zero by 2050 Strategic Initiative in focus

Making global headlines, the UAE announced its ambitious Net Zero by 2050 Strategic Initiative at Expo 2020 Dubai. The plan offers a number of economic opportunities to develop the country into the most dynamic economy.

The net zero plan is actually a national drive to achieve net zero emissions by 2050. The UAE has a considerable focus on climate change and sustainable development. Dubai hosted the COP28 Summit last November, recording notable successes.