ABU DHABI — The Abu Dhabi Department of Economic Development (ADDED) and HYCAP Group, a leading net-zero asset management company, have entered into a partnership aimed at advancing the production, storage, and transportation of green hydrogen. This collaboration aligns with the UAE’s Net Zero 2050 Strategy and National Hydrogen Strategy, marking a significant step towards achieving net-zero emissions.
Under the Memorandum of Understanding, HYCAP Middle East and ADDED will explore the possibility of setting up an industrial complex in Abu Dhabi, involving local partners. This complex will focus on hydrogen-related industries and the development of renewable energy, with the goal of attracting more industrial companies and enhancing the sector’s value chains.
In November 2023, HYCAP Group inaugurated its regional headquarters in the Abu Dhabi Global Market (ADGM) to facilitate its strategic expansion in the region. Additionally, HYCAP announced plans for a UAE-based GCC Fund dedicated to investing in companies that contribute to the net-zero energy transition and the clean hydrogen supply chain.
The UAE’s National Hydrogen Strategy targets positioning the country among the top 10 global producers of green hydrogen by 2031, aiming for an annual production of 1.4 million tonnes.
Plans are also in place to establish hydrogen hubs across the UAE to foster industry adoption, develop a comprehensive supply chain, and build necessary infrastructure.
The partnership involves the Industrial Development Bureau (IDB) of ADDED, which focuses on the development and regulation of the industrial sector. Together, IDB and HYCAP will establish an industrial complex in Abu Dhabi. This complex will feature renewable energy development, an electrolysis plant, hydrogen storage, and transportation facilities, further supporting Abu Dhabi’s sustainable industrial sector and the Abu Dhabi Industrial Strategy (ADIS). The initiative aims to make Abu Dhabi a leading competitive industrial hub in the region.
HYCAP is committed to creating a vibrant ecosystem for the hydrogen industry and clean energy infrastructure in Abu Dhabi. This includes the establishment of facilities for clean hydrogen production, storage, transport, electrolyser manufacturing, electrical charging, fuel cell manufacturing, and the development of bus and truck manufacturing facilities.
The strategy focuses on aligning local supply and demand for hydrogen, with the potential for scaling up to support export sales growth. HYCAP is also keen on attracting global industrial companies to its Abu Dhabi complex, specializing in the hydrogen field.
Arafat Al Yafei, Executive Director of IDB, expressed enthusiasm about the partnership with HYCAP, highlighting its significance in reinforcing Abu Dhabi’s status as a leading industrial hub in the region. This collaboration supports the goals of the Abu Dhabi Industrial Strategy, which aims to accelerate the growth of the industrial sector, its transition to Industry 4.0, sustainability, and human development. The industrial sector’s robust performance in 2023, contributing significantly to Abu Dhabi’s GDP, underscores the success of ADIS initiatives.
Jo Bamford, Chairman and Founding Partner of HYCAP Group, emphasized the strategic positioning of HYCAP in the UAE, recognizing the country’s leadership in the transition to renewable energy. This agreement with ADDED underscores the shared commitment to fostering clean, renewable energy development.
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