Abu Dhabi-based renewable energy company Masdar and two Japanese firms - Mitsubishi Chemical Group Corporation and INPEX Corporation - have signed an agreement to explore the production of the world’s first commercial-scale polypropylene made from carbon dioxide (CO2) and green hydrogen in Abu Dhabi.

The green hydrogen and CO2 will be converted to e-methanol, which will subsequently be transformed to propylene and polypropylene, the companies said in a joint statement on Tuesday.

The agreement was signed during the Japan-UAE Business Forum in Abu Dhabi, attended by Sheikh Hamed bin Zayed Al Nahyan, an Abu Dhabi Executive Council member, and Japan’s Prime Minister Fumio Kishida.

The three companies will further explore the techno-economic feasibility of commercial-scale green hydrogen to e-methanol and polypropylene project.

Masdar’s CEO Mohamed Jameel Al Ramahi said: “Today’s agreement will enable us to join forces and further unlock the potential of green hydrogen to drive industry and growth while reducing emissions.”

Polypropylene, a plastic material, is used to manufacture everyday items such as bottles, jars and food packaging. E-methanol, which will be produced by the project, is a key synthetic fuel that can help to decarbonise maritime transportation.

The project seeks to support hard-to-abate sectors to reduce their carbon footprints.

Building an e-methane facility

Separately, Masdar and INPEX agreed to explore setting up a facility in Abu Dhabi to produce e-methane, a fuel source, utilising green hydrogen and CO2.  

E-methane (synthetic methane) has the potential to accelerate decarbonisation in hard-to-abate sectors, the two companies said in a joint statement.

The firms will conduct a feasibility study focused on the entire value chain, including 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 plans to export e-methane to Japan.  

(Editing by Brinda Darasha; brinda.darasha@lseg.com)