QatarEnergy, formerly Qatar Petroleum, and Dutch oil firm Shell have agreed to jointly invest in blue and green hydrogen projects in the UK.

This is the first hydrogen agreement signed between the two companies.

QatarEnergy said that the deal establishes a framework for collaboration between the firms and to invest in the development of hydrogen solutions.

Under the agreement, the partners will pursue integrated and scalable opportunities in sectors that are considered vital.

The firms expect the deal to help reduce carbon emissions in industrial clusters and transport sectors, with a primary focus on the London metropolitan area.

Qatar Minister of State for Energy Affairs and QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “This agreement does not only reinforce the long-lasting and strategic partnership between QatarEnergy and Shell, but also creates a viable path for innovation and investments in low carbon fuels and technologies across the UK’s energy sector, a key area of investment for QatarEnergy.

“This agreement also builds on QatarEnergy’s commitment to provide reliable access to cleaner energy globally.”

Royal Dutch Shell CEO Ben Van Beurden said hydrogen will play an important role in helping the country reach its net-zero emissions target.

Beurden added: “QatarEnergy’s expertise, in collaboration with Shell’s, will support the UK’s energy transition and help propel this fast-growing sector.”

In August 2021, UK unveiled its Hydrogen Strategy, which aims to achieve 5GW production by 2030.

Last month, Shell Canada partnered with Japan’s Mitsubishi to produce low-carbon hydrogen in Canada.

The deal will see Mitsubishi construct a low-carbon hydrogen facility near the Shell Energy and Chemicals Park Scotford in Scotford, Alberta, Canada.

Shell will provide CO₂ storage through the proposed Polaris carbon capture and storage project (CCS) project near Edmonton, Canada.