UAE state-owned clean energy company Masdar and Japanese energy firm Inpex are jointly exploring the possible development of a project to produce green hydrogen-based synthetic methane in Abu Dhabi.

The companies have agreed to carry out a feasibility study focused on hydrogen production, procurement of CO₂, and e-methane production and transportation. The study will also evaluate the commercial viability of operating a methanation business in Abu Dhabi, with a view to exporting to Japan. 

“Today’s development opens an exciting new chapter for Masdar as we explore how to unlock the full potential of green hydrogen to produce fuel for homes and businesses,” said Masdar CEO Mohamed Jameel al-Ramahi. “Ahead of the UAE hosting COP28, Masdar will continue to build upon strong alliances with our Japanese partners as we advance the global energy transition.”

The agreement was signed during a Japan-UAE business forum in Abu Dhabi. In a separate initiative announced at the forum, Masdar signed an agreement with Japan’s Mitsubishi Chemical Group and Inpex to explore the potential to produce polypropylene made from CO₂ and green hydrogen in Abu Dhabi. The green hydrogen and CO₂ would be converted to e-methanol, which would subsequently be converted to propylene and polypropylene in what would be the world’s first commercial production process of its type.

“We look forward to working together with Masdar and Mitsubishi Chemical Group to pursue a green hydrogen to e-methanol and polypropylene supply chain linking the UAE and Japan,” said Inpex CEO Takayuki Ueda.

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