The UAE and Germany have strengthened their strategic economic partnership with a series of agreements spanning energy, industry, renewable power and advanced technology, with the deals potentially enabling more than €5 billion ($5.8 billion) in investment.

The agreements were signed during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany and follow the UAE’s announcement of €40 billion in intended long-term investment in the country.

They involve Abu Dhabi National Oil Company (ADNOC), XRG and Abu Dhabi Future Energy Company Masdar, alongside German companies including RWE, Securing Energy for Europe (SEFE), MB Energy, Covestro, Siemens Energy, Siemens Industrial and Bosch Middle East.

The agreements were announced alongside the launch of the UAE-Germany Investment Council, which aims to connect governments, investors and companies to identify commercially viable opportunities, address investment barriers and accelerate growth in priority sectors.

Dr Sultan Al Jaber, ADNOC Managing Director and Group CEO, Executive Chairman of XRG, and Chairman of Masdar, said: “The UAE and Germany are building on decades of trusted partnership to advance economic growth and shared prosperity for the long-term. The additional €40 billon of intended long-term investments announced this week, together with the agreements ADNOC, XRG and Masdar signed today with our German partners, build on our investments across Germany’s energy and industrial landscape and mark another step forward in greater cooperation that will create new opportunities for both countries.”    

ADNOC and RWE Supply & Trading signed a Letter of Intent to advance up to two long-term LNG sales and purchase agreements.

The companies will explore supplying LNG to Germany, Europe and Asian markets from ADNOC Gas and XRG’s growing portfolio, with deliveries expected to begin in the early 2030s.

ADNOC, XRG and SEFE also signed an MoU to explore cooperation across the natural gas and LNG value chains, including supply, infrastructure, logistics and portfolio optimisation.

In industrial chemicals, TA’ZIZ and Covestro signed an agreement outlining next steps in their feasibility study for a world-scale methylene diphenyl diisocyanate value chain in Ruwais.

Subject to the study, approvals and a final investment decision, production could begin in the early 2030s.

Covestro, Fertiglobe and MB Energy separately agreed to explore cooperation on low-carbon ammonia supply chains into Germany.

Renewable energy cooperation was also expanded, with Masdar and RWE considering joint participation in future German offshore wind auctions.

Masdar and German asset manager Luxcara will also explore investments in offshore wind and battery storage projects in Germany and wider Europe.

Meanwhile, ADNOC signed strategic collaboration agreements with Bosch Middle East, Siemens Energy and Siemens Industrial to explore cooperation in advanced technologies and artificial intelligence.

The latest agreements build on more than €20 billion already invested by ADNOC, XRG and Masdar in Germany’s energy and industrial sectors.

These investments include XRG’s €14 billion acquisition of Covestro and Masdar’s Baltic Eagle offshore wind project.

ADNOC also holds long-term LNG supply agreements for 1.6 million tonnes per annum into Germany, reinforcing the UAE’s role as a major energy partner for Europe’s largest economy. -OGN/TradeArabia News Service