(MENAFN- The Arabian Post) Greenlogue /AP

A partnership between clean-energy pioneer Masdar and integrated fuels and chemicals company OMV will create a 140 megawatt green-hydrogen electrolyser plant in Bruck an der Leitha, Austria, with operations targeted for 2027. The binding agreement grants Masdar a 49 per cent stake while OMV retains 51 per cent and oversees day-to-day operations. The venture is projected to produce up to 23,000 tonnes of green hydrogen annually, positioning it as Austria's largest hydrogen facility and among Europe's top five.

The deal underscores Masdar's ambition to scale green-hydrogen production globally and marks a tangible step in OMV's drive to decarbonise its refinery operations and align with a net-zero by 2050 goal. The plant will be tied to OMV's Schwechat refinery, which will utilise the hydrogen in industrial applications and potentially enable synthetic fuels and chemicals. The joint venture is expected to close in early 2026, pending final documentation and regulatory approval.

Austria's economy minister described the arrangement as a milestone in Austria-UAE economic relations, noting that it is“absolutely new” to see a direct investment from Abu Dhabi into Austria. The deal builds on a prior non-binding collaboration signed in April by Masdar and OMV, which covered production of green hydrogen, sustainable aviation fuels and synthetic chemicals across Austria, the UAE and Central and Northern Europe.

Beyond the immediate plant, the partners emphasise broader strategic ambitions: Masdar brings experience in clean-energy investments and a global portfolio exceeding 51 GW of renewable capacity, while OMV leverages industrial infrastructure, fuels expertise and regional market access. Their combined objective is to scale hydrogen value chains and underpin electrification and decarbonisation of heavy-industry sectors.

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This project arrives as the green-hydrogen industry is gaining momentum in Europe. Analysts note that large electrolysers of 100 MW+ are becoming pivotal to supply heavy industry and refineries with low-carbon hydrogen, enabling reduction of fossil-derived feedstocks and emissions. While cost remains a challenge, supportive regulation - such as the EU's industrial strategy and regional hydrogen initiatives - is improving project feasibility. Austria itself has signalled hydrogen as central to its energy transition, and the plant will serve as a blueprint for industrial-scale deployment.

However, risks remain. The plant's successful commissioning by 2027 hinges on timely supply of renewable electricity, availability of skilled labour and grid integration in Austria. The high-hundreds-million-euro investment faces macro-economic headwinds, energy-market volatility and evolving EU hydrogen regulation. Furthermore, green hydrogen must compete with blue hydrogen and electrification alternatives, and the business model depends on industrial off-take agreements and favourable policy frameworks.

OMV's CEO, named Alfred Stern, stated that the venture signifies a“bold step” toward reshaping energy industries and accelerating decarbonisation. Masdar's Chief Green Hydrogen Officer, Mohammad Abdelqader El Ramahi, described the partnership as moving the companies“closer to delivering green hydrogen to drive energy-system transformation and energy security.” Their language reflects the shift among legacy energy firms and clean-tech companies from exploratory hydrogen studies to commercial-scale deployment.

The broader context sees hydrogen emerging as a linchpin in decarbonising heavy industrial sectors such as refining, chemicals and steel, where direct electrification is challenging. Europe aims to develop several gigawatt-scale electrolysis facilities by 2030, with cumulative targets embedded in policy frameworks. This Austrian plant, while 0.14 GW in size, sets the stage for further scale-up and collaborative models across borders between Gulf region capital and European industrial assets.

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Europe's hydrogen supply chains are also increasingly global. The involvement of Masdar, based in the Gulf region, illustrates a trend of cross-continental partnerships combining renewable-energy finance, industrial execution and offtake logistics. For Masdar, the Austria project complements its global ambitions to reach 100 GW of renewable capacity by 2030 and expand hydrogen value chains beyond regional solar and wind assets.

From OMV's standpoint, the venture mitigates the risk of regulatory pressure on fossil fuels and leverages its existing downstream facilities, potentially converting hydrogen and derivatives into synthetic aviation fuel, chemicals and low-carbon feedstocks. That integration may create downstream value and provide hedge against the decline of traditional hydrocarbons.

via Greenlogue

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