UAE and Germany sign major energy deal to supply natural gas

This UAE and Germany A “landmark agreement” was signed on Sunday to accelerate joint efforts to promote energy security, decarbonization and combat climate change.

major transactions are President Sheikh Mohammed and German Chancellor Olaf Schulz, who is currently visiting the UAE.

The new Energy Security and Industry Accelerator Agreement was signed by Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and the UAE’s Special Envoy for Climate Change, and Dr. Franziska Brantner, Parliamentary Secretary of State at the German Federal Ministry of Economic Affairs and Climate Action.

In a Twitter post after the seal was finalized, Sheikh Mohammed spoke of the “close friendship and strategic partnership” enjoyed by the two countries.

Countries built on close ties

Under the international partnership, Abu Dhabi National Oil Company will supply LNG cargoes to German energy company RWE AG by the end of the year. This will be used at the floating LNG import terminal in Brunsbitt, Germany.

Adnoc also has some other LNG cargoes set aside for the German company in 2023.

Adnoc has entered into a series of agreements with German companies for demonstration cargoes of low-carbon ammonia, a hydrogen carrier fuel that can play a key role in supporting decarbonisation.

It was also announced that Adnoc had completed the UAE’s first direct diesel delivery to Germany this month and had reached an agreement with Wilhelm Hoyer GmbH & Co. KG (Hoyer) to supply up to 250,000 tonnes of diesel per month next year.

Mr Schultz’s visit comes as Germany tries to reduce and diversify its dependence on Russia’s energy supply.

Before the Ukraine war, Russia supplied about 40 percent of Europe’s natural gas. About 55% of the natural gas consumed in Germany is imported from Russia. Natural gas accounts for about 27% of the energy mix in Europe’s largest economy.

UAE and other countries in the MENA region are Seeking plans to incorporate hydrogen into its energy mix And develop clean fuels for different industrial applications.

The two countries are expected to work together to find more opportunities to boost the growth of the growing hydrogen energy industry.

The alliance will also involve Masdar, the leading renewable energy company in the UAE, exploring opportunities in the German North Sea and Baltic offshore wind markets. Its goal is to generate up to 10GW of renewable energy capacity by 2030.

“This landmark new agreement strengthens the rapidly developing energy partnership between the UAE and Germany,” said Dr. Al Jaber.

“As we embrace the energy transition, Adnoc is fully committed to accelerating and investing in energy security, decarbonization and climate action projects as we continue to be a responsible and reliable low-carbon energy supplier and trusted exporter.”

Mr Scholz said: “I welcome the signing of the Joint Statement of Intent on the ‘Energy Security and Industry Accelerator – Esia’.

“Through Esia, we are able to rapidly implement strategic lighthouse projects in key areas such as renewable energy, hydrogen, LNG and climate action.”

Earlier on Sunday, the UAE announced that it had commissioned a German company to develop the country’s national hydrogen strategy. This comes as the country diversifies its energy mix and pursues its goal of achieving net-zero emissions by 2050.

Ministry of Energy and Infrastructure signs agreement German Global engineering and consulting firm GHD has partnered with applied research institute Fraunhofer-Gesellschaft to develop its hydrogen energy strategy, the company said on Sunday.

“We remain focused on our goal of capturing 25 percent of the most important hydrogen market,” said Suhail Al Mazrouei, Minister of Energy and Infrastructure.

Updated: September 25, 2022 at 12:48 pm