A landmark agreement has been signed by the UAE clean-energy firm Masdar and Austrian integrated energy company OMV to establish a joint venture for the financing, construction and operation of a 140 MW green-hydrogen electrolyser plant at Bruck an der Leitha, Austria. The plant is expected to commence operations in 2027, following the commencement of construction in September 2025.

OMV will hold a 51 per cent majority stake in the JV, while Masdar will hold 49 per cent, effectively combining OMV's industrial experience in fuels and chemicals with Masdar's global clean-energy expertise. The move represents OMV's continuing Strategy 2030 ambition to decarbonise its operations – including its Schwechat refinery – through large-scale green hydrogen production.

The plant is structured to operate using renewable electricity to produce green hydrogen, which OMV will procure and own. Masdar and OMV indicate that this facility will position Austria as a significant hydrogen hub in Europe, with the plant becoming one of the continent's largest electrolysers.

Austria's Federal Minister of Economy, Energy and Tourism, Wolfgang Hattmannsdorfer, said the project represented one of the largest direct foreign investments into Austria in recent years and would strengthen the country's industrial base in emerging low-carbon technologies. For Masdar and the UAE, the agreement underlines a deepening bilateral economic and energy partnership with Austria and signals their ambition to scale green-hydrogen production globally.

Market observers highlight that Masdar's investment of several hundred million euros – though the exact figure has not been publicly disclosed – mirrors growing corporate activity in Europe's hydrogen value chain. OMV's existing small-scale 10 MW electrolyser at the Schwechat site provides operational experience but the 140 MW facility marks a step-change in scale.

The plant at Bruck an der Leitha, situated near Austria's borders with Hungary and Slovakia, is expected to produce up to 23,000 tonnes of green hydrogen annually. The hydrogen is intended to decarbonise hard-to-abate industrial sectors including OMV's own fuels and chemicals business and could serve as feedstock for synthetic aviation fuels and chemicals.

The partnership also includes plans to explore broader cooperation in synthetic sustainable aviation fuels and synthetic chemicals production in both the UAE and Central/Northern Europe. Analysts note that such vertical integration-covering hydrogen production, downstream synthetic fuels and chemicals-reflects an emerging trend among major energy companies seeking to build full value-chains. Challenges remain, however: green hydrogen production at this scale still faces cost and supply-chain hurdles, and success will depend on securing long-term renewable power and supportive regulatory frameworks.

Environmental groups cautiously welcomed the deal, noting that while large-scale hydrogen projects are vital for industrial decarbonisation, the overall climate impact depends on electricity sourcing and system-wide emissions. Some experts emphasise that hydrogen only becomes“green” if the entire value chain - from electricity to distribution - meets strict low-carbon standards.

For OMV, the venture strengthens its transition away from traditional fossil fuels toward low-carbon operations. For Masdar, the JV accelerates its 2030 ambition to become a leading global producer of green hydrogen and derivatives. With both firms now committed to large-scale commercial deployment, the plant at Bruck an der Leitha emerges as a potential benchmark for Europe's hydrogen economy and the intensifying UAE-Austria energy cooperation.

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