Hydrogen Roman/Pixabay

HYCAP Group, a net-zero asset management company based in the U.K., has expanded its business to the United Arab Emirates (UAE) by opening an office in Abu Dhabi Global Market (ADGM).

HYCAP Group disclosed on Tuesday, during a private event that was part of Abu Dhabi Finance Week, that it has plans for a UAE-based Gulf Cooperation Council (GCC) Fund to invest in companies that supply clean hydrogen and help achieve net-zero energy transition.

The company noted that it is committed to promoting the adoption of carbon-free fuel in high-emitting sectors. The UAE's National Hydrogen Strategy aims to make the country one of the top 10 producers of green hydrogen by 2031.

Arvind Ramamurthy, chief market development officer of ADGM, welcomed HYCAP Group in the Abu Dhabi Global Market, noting that it "underscores the capital's position as a leading center for climate finance," according to WAM.

"As we navigate this era of transformation, sustainable development remains at the heart of Abu Dhabi's economic strategy. Our commitment to integrating clean energy solutions, particularly through the expansion of our low-carbon and green hydrogen capabilities, is unwavering," he added.

Ramamurthy pointed out that initiatives like HYCAP Group's investment are important for enhancing Abu Dhabi's strategic position in the hydrogen sector and are aligned with the UAE's National Hydrogen Strategy.

Jo Bamford, chairman and founding partner of HYCAP Group, explained that the company's idea to expand to UAE is a "strategic decision to place HYCAP Group at the nexus of the world's emerging green hydrogen hubs," as the Middle Eastern country is "spearheading the worldwide push towards clean and renewable energy."

"We are committed to supporting these initiatives by catalyzing the hydrogen market. This includes establishing manufacturing clusters that can foster the necessary innovation, collaboration and demand needed for sustainable industrial growth," Bamford continued.

James Munce, CEO of HYCAP Group, emphasized that green hydrogen's potential in sectors like transportation and heavy industry is immense, before adding, "Our demand-first investment strategy is pivotal for unlocking the hydrogen value chain, paving the way for a sustainable and economically viable hydrogen economy."

The UAE will be hosting COP28 this year. The summit will be held at Expo City Dubai from Nov. 30 to Dec. 12.

American credit rating agency Fitch Ratings said last week that the COP28 summit has the potential to play an important role in boosting green financing as the UAE holds 19% of global sustainable bonds.