The Role Of Hydrogen In Achieving Net Zero In Middle East

Hydrogen has long been touted as a potential game-changer in the fight against climate change, with its high calorific value and clean burning properties. However, its potential to decarbonize the Middle East's economy hinges on how it is produced. Currently, the majority of hydrogen is produced from fossil fuels in a process known as "grey hydrogen," which generates significant carbon emissions. To make a meaningful contribution to decarbonization, hydrogen must be produced from renewable sources or through carbon capture and storage (CCUS).

One potential solution is "blue hydrogen," where hydrogen is produced from fossil fuels but the resulting carbon emissions are captured and stored. However, CCUS technology is not yet deployed at the scale needed to make a significant impact on emissions reductions, and the economics of its mass use have not been established. As a result, blue hydrogen cannot be relied on as a high-volume contributor to decarbonization in the short to medium term.

The other option is "green hydrogen," where hydrogen is produced through electrolysis using renewable energy sources such as wind and solar power. While the rapid expansion of renewable energy provides important possibilities for the mass production of green hydrogen in the future, there is currently an unmet need for renewable-sourced electricity to directly contribute to power supplies as demand for electricity rises in both domestic and industrial settings.

Moreover, the use of green electricity to produce hydrogen involves the inefficiency of all industrial processes, resulting in energy loss. Despite the challenges, the future of power generation will inevitably involve digital technologies deeply integrated into plant operations.

These technologies will enable performance optimisation, predictive maintenance scheduling for equipment, selective automated decision-making in matters of operation and maintenance, and risk reduction, all of which will help maximise the profitability of gas-turbine combined cycle power plants.

Opportunity for the Middle East as a Key Player for Hydrogen

The Middle East has long relied on its vast reserves of oil and gas to power its growth as a global economic powerhouse. However, with the world moving towards more sustainable forms of energy, the region is now looking to become a pioneer in the hydrogen industry.

Building on their extensive experience and expertise in the oil and gas sectors, countries like Saudi Arabia, Qatar, Kuwait, and the UAE are now positioning themselves as leaders in the transition to more sustainable forms of energy.

While some of this shift is driven by concerns about the long-term demand for oil, there is also a growing recognition that renewables can be made more cost-effective, thereby smoothing the energy transition.

Diversification of exports is also seen as essential, with existing supply chains serving as a platform for the development of competitive advantages in new industries.

There is clear evidence of buy-in to hydrogen's potential across the region, with Saudi Arabia leading the way in becoming a leading global supplier of hydrogen. The region expects to produce 650 metric tonnes of green hydrogen daily by 2026.

The Middle East has abundant natural resources that fuel renewable energy and a strategic location that enables green hydrogen exports to European and Asian markets. The region, especially Saudi Arabia, the UAE, and Oman, are likely the best candidates for transporting clean hydrogen because of their existing infrastructure to transport and store oil. They also have the right expertise to deliver it, so adaptability to hydrogen is easy.

Smart grid technologies will be needed to enable multi-directional flows and provide greater control over electricity and information in a widely distributed network.

In 2021, Saudi Arabia’s Minister of Energy, Abdulaziz bin Salman al-Saud, announced the country’s aim to become the world’s largest hydrogen producer.

If hydrogen is to replace fossil fuels within the Middle East’s energy system, significant investment will be required in the networks and infrastructure needed to distribute it around the country. Ultimately, to maximise the future possibilities of using hydrogen to decarbonize the economy, clear commitments will be needed by governments in the short- and medium-term to the development and deployment of CCUS and renewable energy.

This investment in technological innovation will enable clean energy sources like hydrogen to become more affordable, driving down costs and enabling mass adoption.

It has the potential to play a significant role in decarbonizing the Middle East economy, but this potential can only be realised if it is produced from renewable sources or through CCUS. Blue hydrogen cannot be relied on as a high-volume contributor to decarbonization in the short- to medium-term, and significant advances in the economic deployment of CCUS and/or the development of a renewable-to-hydrogen capacity are required.

With the right investment in technological innovation, however, hydrogen could become a key player in the fight against climate change, helping to create a future that works for people and the planet.

DEWA Wins Hydrogen Project of the Year 2023

Dubai Electricity and Water Authority (DEWA) has been recognised for its contribution towards promoting renewable and clean energy by winning the Hydrogen Project of the Year 2023 Award. The award was given for DEWA’s green hydrogen project at the Mohammed bin Rashid Al Maktoum Solar Park, which is the first project of its kind in the Middle East and North Africa region to produce green hydrogen using solar energy.

The Hydrogen Future Awards 2023, organised during the ‘Connecting Green Hydrogen MENA’ (CGHM2023) conference in Dubai, also saw HE Saeed Mohammed Al Tayer, MD and CEO of DEWA, receive the World Energy Transition Leader 2023 award. This award recognises influential leaders from international energy corporations who have made significant contributions to the global growth of the clean energy industry.

The green hydrogen project is a significant step towards achieving the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050, which aim to provide 100 percent of Dubai’s total power production capacity from clean energy sources by 2050.

It also supports the Dubai Green Mobility Strategy 2030 to encourage the use of sustainable transportation and the UAE’s Hydrogen Vehicles System, which aims to develop the hydrogen economy in the UAE and open up local markets to hydrogen vehicles.

Waleed Bin Salman, Executive Vice President of Business Development and Excellence at DEWA, said that the station was designed and built to accommodate future applications and test platforms for various uses of hydrogen, including energy production, transportation, and industrial uses.

The green hydrogen project also supports the UAE’s hosting of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 28) during the Year of Sustainability.

It is aligned with Dubai’s firm commitment to sustainability and its unwavering support for energy and combating climate change.

DEWA’s achievements in the transition towards renewable and clean energy were highlighted at the CGHM2023 conference, providing an opportunity to showcase its pioneering green hydrogen project. DEWA’s efforts towards promoting the transition to carbon neutrality and supporting a green economy represent one of the pillars of a sustainable future, contributing towards achieving a globally leading sustainable and innovative corporation committed to achieving net zero by 2050.

According to Wood Mackenzie'sforecast,t hydrogen demand will more than double by 2050. The hydrogen industry amounts to a $600 billion investment opportunity. The MEED report stated that Saudi Arabia and the UAE had projects worth US$10.5 billion and US$10.28 billion, respectively. Egypt has invested US$63.8 billion in hydrogen projects. Oman has invested in projects worth US$48.9 billion. Moreover, Saudi Arabia has claimed to keep the cost of hydrogen lower than US$2 per kg.

The Middle East region is primed to become a leader in green hydrogen production and exportation due to a combination of rising global demand, cost reductions via innovation, and pre-existing conditions suitable for the production and transportation of green hydrogen.

However, success hinges on scaling sustainable production facilities supported by tailored logistical setups.

The key to securing a market lead is to shift towards fully scalable, sustainable production facilities that can efficiently transport green hydrogen from plant to ship.

The region has a promising future in this area. It has dozens of green hydrogen projects in the pipeline that could fuel the development of this pioneering renewable energy source and its ambition towards achieving net-zero emissions.

It is also a reflection of the region's willingness to adapt and embrace new technologies and industries. As the world moves towards a more sustainable future, the Middle East is poised to play a leading role in the development of hydrogen, providing a key source of energy for decades to come.