Three South Korean companies have struck a deal with their UAE partner to establish a $1 billion green hydrogen and ammonia manufacturing plant in the UAE.
According to Petrolyn Chemie, Korea Electric Power Corporation, Samsung C&T Corporation, and Korea Western Power will collaborate to create a plant that can produce up to 200,000 tonnes of green ammonia per year.
Some have hailed green hydrogen as a significant fuel for energy consumers wanting to reduce greenhouse gas emissions. Green hydrogen is created by passing renewable electricity through water to split the element from oxygen.
Amid a growing economic rivalry, both the UAE and Saudi Arabia have laid out ambitious plans for hydrogen.
The factory will be constructed in two phases in the KIZAD Industrial Area in Abu Dhabi’s capital, with the first phase producing 35,000 tonnes and the second phase bringing the project to full capacity.
“Participating companies will achieve their respective net-zero visions through the project,” Petrolyn said. “They are expected to… expand the drive of future growth in the global green hydrogen market by expanding the reproduction of their future business model.”