An electrolyzer by the Chinese company Gofu - Image from Hydrogen Insight
A Chinese company is betting on the UAE with a hydrogen technology factory.

The UAE is preparing to host a new project aimed at expanding the development of hydrogen technologies and equipment, reflecting the Middle East's attractiveness as a promising market for development.

This comes as the Chinese company Guofu searches for a suitable location for its anticipated factory, as part of its expansion beyond the local market, following significant losses in its 2025 financial results.

Guofu has signed an agreement with relevant authorities in Abu Dhabi regarding the project site, as the company seeks to meet and increase purchase orders, according to details reported by the specialized energy platform (based in Washington).

It appears that the Middle East, and the UAE in particular, is not the only target for the Chinese company, as it continues its expansion into Europe in partnership with a German group.

Hydrogen Technology Factory in the UAE

The UAE and the Chinese company Guofu have signed an agreement allowing the latter to lease land in Abu Dhabi, which will be used to build the anticipated factory. According to information published by Hydrogen Insight, the factory will focus on producing hydrogen technologies and equipment, including drones.

The agreement stipulates the establishment of the factory in the Khalifa Economic Zone (KIZAD). The two parties did not specify the land lease amount or whether there are any future plans for technical cooperation.

A Chinese company in the Khalifa Economic Zone

The company is counting on the land lease agreement to enhance its capabilities in developing new energy and drone technologies in the Middle East, which will positively impact its market expansion in the region.

Meanwhile, the company is preparing to open a factory in Germany this year, in cooperation with the RCT Technology Group. The factory, scheduled to begin operations in 2026, will specialize in producing pressurized alkaline electrolyzers with a capacity of up to 250 megawatts.

The plan to build the hydrogen technology factory in the Middle East appears to have come at a very opportune time for the Chinese company Gofu, given its significant financial losses. Losses reached 381.7 million yuan ($56 million) last year, up from 208 million yuan the previous year, according to recently released annual results.

Gofu had already indicated in March that it expected a decline in profits due to a slowdown in the domestic market. This comes despite a more than threefold increase in sales revenue from its electrolyzers during the reporting period.

Despite the losses, the company is attempting to bolster its domestic plans, having secured 150 million yuan in financing for a 300-megawatt Chinese project, without disclosing further details. Meanwhile, its planned factory in Abu Dhabi appears poised to boost its sales figures, aiming for a 1 billion yuan increase in orders this year, up from 560 million yuan currently.

While the Khalifa Economic Zone is attracting a new Chinese hydrogen equipment and technology factory, the UAE government continues to invest directly in clean fuels. The Mohammed bin Rashid Al Maktoum Solar Park project has contributed to the production of more than 112 tons of green hydrogen since its launch in May 2021.

Hydrogen in the UAE

The crisis facing the Chinese company Gofu

This has resulted in the production of more than 1.15 gigawatt-hours of green electricity and a reduction of 515 tons of carbon emissions. Also last year, Abu Dhabi continued to support its hydrogen sector plans with France, with a UAE delegation discussing areas of cooperation during a visit to Paris.

In October of last year, Abu Dhabi Future Energy Company (Masdar) signed a memorandum of understanding with Etihad Rail to explore opportunities for transporting green hydrogen and its derivatives. Green hydrogen-powered buses began operating in the country in March of the same year.