The Abu Dhabi Department of Economic Development (ADDED) and HYCAP Group, the net zero asset management company, have signed an agreement to develop the production, storage, and transport of green hydrogen, spearheading the transition to net zero in line with the UAE’s Net Zero 2050 Strategy and National Hydrogen Strategy.
The Memorandum of Understanding (MoU) between HYCAP Middle East and ADDED will also see the two organizations join forces to assess establishing an industrial complex in Abu Dhabi with the involvement of local partners.
The complex will specialize in industries related to hydrogen and the advancement of renewable energy sources, aiming to attract and establish more industrial companies and bolster the value chains within this sector.
In November 2023, HYCAP Group opened its regional headquarters in Abu Dhabi Global Market (ADGM) to support its strategic expansion to the region and unveiled plans for a UAE-based GCC Fund that will invest in companies serving the net zero energy transition and clean hydrogen supply chain.
The National Hydrogen Strategy aims to make it a top 10 producer of green hydrogen by 2031 with an output target of 1.4 million tons per year.
Arafat Al Yafei Executive Director IDB
“We are delighted to have signed this agreement with HYCAP, which is an important step along the road to make AD the most competitive industrial hub in the region. This is part of the partnerships we are building with leading global powerhouses to enable our manufacturing sector to achieve the Abu Dhabi Industrial Strategy’s goals. ADIS is guiding our efforts to accelerate the growth of the industrial sector and its transformation to Industry 4.0 methods and techniques, placing sustainability and human development at its core. The strong performance of the industrial sector in 2023 reflects the continued success of ADIS initiatives as the sector now contributes over 17 percent to Abu Dhabi’s non-oil GDP and 9 percent to the overall GDP.”
The UAE plans to establish hydrogen hubs to accelerate industry adoption of hydrogen, cultivate a supply chain, and enable infrastructure. Under the MoU, the Industrial Development Bureau (IDB), ADDED’s arm to develop and regulate the industrial sector, and HYCAP will work together to establish an industrial complex in Abu Dhabi for the development of renewable energy sources, an electrolysis plant, a hydrogen storage facility, and hydrogen tankers for transportation.
The complex will contribute to the development of Abu Dhabi’s sustainable industrial sector and the goals of the Abu Dhabi Industrial Strategy (ADIS), which seeks to develop value chains for targeted sectors. It will also consolidate Abu Dhabi’s position as the region’s most competitive industrial hub.
HYCAP will also work on creating a robust ecosystem of industries in Abu Dhabi that revolve around the hydrogen industry and clean energy infrastructure. This includes establishing clean hydrogen production facilities, clean hydrogen storage and transport, an electrolyzer manufacturing facility, electrical charging manufacturing, fuel cell manufacturing, and developing bus and truck manufacturing facilities.
The strategy is to align supply and demand for hydrogen locally, scaling up to create a viable proposition for export sales growth. Furthermore, HYCAP is actively seeking to attract global industrial companies specializing in this field to their industrial complex in Abu Dhabi.
Jo Bamford, Chairman and Founding Partner of HYCAP Group, said that, “We opened our offices in the UAE to place HYCAP Group at the center of the world’s emerging green hydrogen hubs. The UAE is leading the transition to clean, renewable energy and this agreement with the Abu Dhabi Department of Economic Development is a demonstrable example of the commitment in the region to grasp the opportunity this presents.”
