DUBAI: Three South Korean companies have signed an agreement to build a billion-dollar hydrogen and green ammonia production plant in the United Arab Emirates, their Emirati partner announced on Friday.
Korea Electric Power Corporation, Samsung C&T Corporation and Korea Western Power, alongside Petrolyn Chemie of the United Arab Emirates, will build a plant capable of producing up to 200,000 tonnes of green ammonia per year, Petrolyn said.
Green hydrogen – made by running renewable generated electricity through water to separate the element from oxygen – has been touted by some as a key fuel for energy consumers looking to reduce greenhouse gas emissions.
The United Arab Emirates and neighboring Saudi Arabia have drawn up ambitious hydrogen plans, amid growing economic rivalry between them.
The plant will be built in two phases in the KIZAD Industrial Zone near the capital Abu Dhabi, with the first phase producing 35,000 tonnes before the second phase brings the project to full scale.
“Participating companies will achieve their respective Net-Zero vision through the project. They are expected to…expand future growth momentum in the global green hydrogen market by broadly replicating their future business model,” Petrolyn said.