United Arab Emirates (UAE)-based green hydrogen and ammonia specialist Ocior Energy has signed a memorandum of understanding with the Gujarat government to build a new production facility in the Indian state.

The project, which has an estimated value of $4.85bn (Rs397.28bn) and is located in the district of Kutch, will be designed to generate one million tonnes of green hydrogen and ammonia per annum, according to Ocior Energy. Built over two phases, it is expected to generate nearly 10,400 jobs and become operational by 2030.

The project is part of Ocior’s corporate strategy to develop 4GW of green hydrogen and green ammonia projects across the Middle East, North Africa and India. Ocior is headquartered in the Abu Dhabi Global Market free zone.

Becoming a regional leader in hydrogen production is key to the UAE’s strategy to diversify its energy sector and reduce its reliance on oil and gas production. Its aim is to become a major hydrogen exporter, with its companies building out capacity both domestically and overseas.

The UAE is not the only country in the Gulf region to be investing heavily in hydrogen production. ACWA Power is developing a $8.5bn (SR31.88bn) green hydrogen project at Neom, a new city in Saudi Arabia, with plans for at least two additional similar hydrogen production facilities.