Today's Edition
AYESHA KHALFAN ALREMEITHI (ABU DHABI)
The writer is a researcher at TRENDS Research & Advisory
Investment in hydrogen production has flourished as it is a clean, renewable, and sustainable energy source that helps avoid greenhouse gas emissions and the impacts of climate change.
It is also one of the solutions paving the way for the post-fossil fuel era at a time when global surface temperatures are rising rapidly.
Hydrogen, produced through water-splitting technology, has multiple uses, including in the transportation sector.
Efforts are underway to develop hydrogen-powered aircraft designs in the near future.
Additionally, hydrogen is a viable alternative to natural gas for household activities and heating.
It can also be used to produce green ammonia in the eco-friendly fertiliser industry.
Arab countries are investing in green hydrogen production projects, with the UAE, Egypt, Saudi Arabia, Oman, and Morocco leading the way.
This comes as part of combating climate change and the anticipated increase in demand for clean energy.
The UAE’s 2050 Energy Strategy focuses on balancing economic needs with environmental goals to achieve carbon neutrality.
The country aims to produce 1.4 million metric tons of hydrogen annually by 2031, increasing to 15 million metric tons annually by 2050.
The strategy also includes reducing emissions in heavy industrial sectors by 100 percent, aiming for leadership in this field with a quarter of the world’s green hydrogen production, relying on significant natural resources and advanced infrastructure.
Notably, the UAE established the first green hydrogen production plant in the Middle East in 2022.
In Saudi Arabia, NEOM Green Hydrogen Company seeks to harness four gigawatts of solar and wind energy to produce six hundred tons of carbon-free hydrogen daily.
For this purpose, the company is building the world’s largest green hydrogen production plant at a cost of $8.4 billion, to be completed by late 2026 in Neom.
Oman is also participating in the green hydrogen race in the region, with a plan to produce one million tons annually by 2030 and around 8.5 million tons by 2050.
The Egyptian government has signed multi-billion-dollar deals with more than fourteen entities and governments, including the UAE, India, Germany, Norway, and Saudi Arabia, to produce green hydrogen.
Egypt aims to expand its green hydrogen market, producing 100,000 tons of green ammonia and 20,000 tons of green hydrogen by 2025, and around 5.8 million tons of green hydrogen by 2040.
This effort is to reduce reliance on traditional energy sources and enhance energy security.
Egypt’s strengths in hydrogen production include a well-developed gas pipeline network that can be used for hydrogen transport.
In 2023, the Suez Canal Economic Zone produced green hydrogen.
Morocco aspires to lead in green hydrogen production by capitalizing on its geographical location, which provides pipeline access to Europe, one of the world’s largest hydrogen markets.
The country aims to produce more than three million tons of green hydrogen annually by 2030.
The Middle East and North Africa’s shift towards green hydrogen stems from the need to diversify the energy mix away from oil and gas, compete in the global energy market, support non-oil economies, diversify income sources, and improve the balance of payments.
For non-oil-producing countries, establishing a local hydrogen production base ensures energy security, supports production sectors with sustainable sources, reduces reliance on imports, and stimulates investment and job opportunities.
With global demand for green hydrogen expected to reach $1.4 trillion annually by 2050, Middle Eastern and North African countries are setting high goals for green hydrogen, which offers tremendous potential for the production of clean fuel.
The European Union aims to purchase 10 million tons of hydrogen annually by 2030, considering hydrogen as one of the most promising solutions for combating climate change.
This opens opportunities for the region to secure global shares in a trade expected to gain momentum by 2030.
However, challenges related to cost, storage, and transportation persist, with the cost of producing one kilogram of blue hydrogen ranging from $1.5 to $3.5 and green hydrogen from $2 to $10.
The use of green hydrogen in daily life is achievable.
With technological advancements, cost reductions, and increased investment in infrastructure, storage, and transportation, green hydrogen could become the fuel of the future.
The Middle East and North Africa’s shift towards green hydrogen stems from the need to diversify the energy mix away from oil and gas, compete in the global energy market, support non-oil economies, diversify income sources, and improve the balance of payments
