Abu Dhabi Invests in Climate Tech Startups Amid Oil Dependency Concerns

In a significant move to address the climate crisis, Abu Dhabi's tech ecosystem, Hub71, has launched its inaugural program aimed at supporting decarbonization technologies. This initiative features five startups focused on innovative solutions across various sectors, including energy and aquaculture. Ahmad Ali Alwan, CEO of Hub71, emphasized the UAE leadership's commitment to the climate agenda, highlighting the importance of developing commercially viable solutions. The UAE has invested tens of billions into renewable energy and carbon reduction projects, alongside restoring 6,400 hectares of mangroves to enhance carbon absorption. Despite these efforts, Abu Dhabi's heavy reliance on oil—accounting for approximately 46% of its economy—has raised skepticism regarding its dedication to decarbonization. However, the latest cohort of startups at Hub71 includes companies tackling emissions in the oil and gas sector, such as one providing real-time recommendations for engineers to reduce emissions and another focused on mitigating gas flaring, a significant contributor to climate change. The financial backing from Abu Dhabi's oil wealth is seen as a major draw for startups like Graphmatech, which aims to produce low-carbon hydrogen from diverse sources, including renewable energy and fossil fuels with carbon capture. Additionally, Masdar and Emirates Steel Arkan are collaborating on a pilot project to explore the use of green hydrogen in steel production, a sector responsible for about 8% of global emissions. Graphene technology developed by Taher promises to significantly reduce hydrogen leakage, further supporting the region's sustainability goals.