Many countries and private companies have been accused of greenwashing everything they do. However, on the topic of green transitioning, the UAE is walking the talk. State holding companies Abu Dhabi ADQ and Alpha Dhabi Holding are ready to invest $375m in the Netherlands’ chemical industry company OCI NV — a leading global methanol producer. The deal is set to be finalized by the end of this year.
As part of the deal, the two UAE companies will obtain a 15% stake in the OCI Methanol Group, which will be registering as an ADGM company in Abu Dhabi. After the deal was announced, Alpha Dhabi Holding shares jumped nearly 7% on the Dubai Financial Market. The excitement is real, as this represents a huge opportunity for the UAE to capitalize on the growing demand for clean energy — especially in the shipping industry, where methanol is considered to be the most efficient and effective clean energy fuel. OCI Methanol can produce 3 million metric tons of methanol, so consider that.
why it matters
The deal with OCI NV comes right after the UAE announced the construction of the first green hydrogen plant in the Middle East. The UAE wants to capture 25% of the global hydrogen fuel market by 2030 and aims to reach net-zero emissions by 2050. The deal with OCI NV sets them on the right path.