UAE Is Right Poised To Become A Major Player In The Global Hydrogen Sector: Wietse Ter Veld

It is expected that the MENA region will play a pivotal role in the production of low-carbon hydrogen. Blue hydrogen, created via methane reforming with CCS, is expected to contribute significantly to this expansion, with volumes increasing from about 1 mt in 2030 to 10 mt by 2050. However, beginning in the 2040s, it is expected that more green hydrogen and yellow hydrogen will be added to the grid.

Elaborating further on the subject, Wietse ter Veld, Green Hydrogen Expert at Atkins Middle East stated, “From what I can see, the United Arab Emirates (UAE) is planning to seize 25% of the worldwide hydrogen market in the near future. Natural gas derived from fossil fuels is used to manufacture about 300,000 metric tonnes of hydrogen annually. So, going forward, picture a massive increase in global hydrogen demand, perhaps as high as 600 million metric tonnes of hydrogen. With a capture rate of 25%, that would amount to 150 million metric tonnes for the UAE. That's a massive increase compared to current production levels. And all the carbon dioxide released during the hydrogen production process must be sequestered in order to make it "green" or "blue" hydrogen. As a result, the growth rate will skyrocket. And that, at least as far as anyone can tell right now, is the UAE's ultimate goal. Already, we can see that people are taking action, and plans are being put into motion.”

Everyone is aware that significant initiatives are now being pushed out in the region. All of these projects are in some stage of development or engineering and capital raising at the present time.

Of course, it's only reasonable that some, if not most, of the equipment needed for such projects would be built in the regions once development reaches the stage where it's time to execute and realise them. Together, these two trends necessitate investment in R&D to advance the state of the art in hydrogen compression, solar and wind power plants, and the supply chain as a whole. It makes sense to have some of the development's research and manufacturing done in close proximity to the area's initiatives. And I can see that happening very soon.

Cost-Effective Generation Of Green Hydrogen

“There is a major push to get significantly more affordably priced hydrogen than is now available, and these advancements are occurring in the United States, Chile, and Europe. Our current hydrogen production costs are $2–$5 and could go as high as $7–$8 per kilo. When hydrogen is produced via electrolysis using renewable resources, electricity accounts for 60–70% of the LCOH, making it the single largest contributor to the cost of producing hydrogen,” opined ter Veld.

“That's why we're working to find ways to reduce the overall cost of electricity. And neither the United Arab Emirates nor Saudi Arabia would be a bad choice. Solar power's per-megawatt-hour price tag can be reduced to between $10 and $20. That puts the area on track to achieve the $1 per kilogramme goal. Equipment costs, along with those of the entire value chain, need to be cut in half. Within the next decade or two, I believe it will be possible in this area,” he added further. 

Challenges Of The Sector

All parts of the hydrogen value chain have difficulties, but green hydrogen is particularly vulnerable. Although much technology has been around for decades, it is still undergoing changes. The technical value chain is not static, but rather the sum of its parts. The financial justification is also changing. 

It's not like you built an electrical generator and have paying customers. Now, when you first begin producing green hydrogen, you have no idea who or what will buy your product. To employ green hydrogen as a feedstock and replace existing grey hydrogen for that feedstock is something that everyone wants, as is the replacement of fossil fuels and its application as an energy element. We're aware of the fact that we need it. However, the future course of events is unknown.

Furthermore, the European Union (EU) is currently experiencing a significant push to decarbonize for climate change purposes as well as economic reasons relating to the war in Ukraine.

When it comes to settling on a precise definition of "green," the European Union is in the lead. Many parts of Asia and the United States are still trying to figure out what constitutes "green" as the concept develops.

“Making the business case and engineering a project with specifics like "how you're going to do that" and "where exactly the power is going to come from" gets difficult when the wind isn't blowing and the sun isn't shining. These are the obstacles we face, and my company is attempting to overcome them. The end is in sight,” stated ter Veld.

“Several initiatives have been placed under our care. I need to exercise some caution regarding the location and identity of my clients. This year, however, we have regional projects in the United Arab Emirates, for several businesses in Oman, and Egypt. We are considering a move into the Indian market for the same reason that we see India as a rising power in the hydrogen and renewable energy industries,” he added further.

Release Of CO2 A Major Concern

Carbon dioxide is released in large quantities during the chemical process currently used to produce more hydrogen from gas or coal. It is a major concern when the entire game is working on reducing the carbon footprint. 

Answering the query, ter Veld stated, “There isn't a definite solution to that. Reducing our energy consumption is a good first step because it is both clear and, by coincidence, more efficient. Lots of oil, gas, and coal are still waiting to be extracted from the ground. We cannot expect to make the change to a completely green economy in the next few years. Therefore, we will use such fossil fuel resources during this transition phase. The difficulty lies in ensuring that their use is carbon neutral and that their emissions are captured. It does, however, raise the price. It's also really challenging to gather up all the carbon. We should have no trouble snagging 50% if not 60%. However, if you aim to collect every last bit of carbon dioxide emissions, you'll have your hands full.

“More plantings or seaweed farms could also help. Plants that are allowed to grow will absorb carbon from the air, compensating for the greenhouse gas emissions that have been produced. Therefore, I believe that all of these potential avenues are emerging simultaneously. And I think in the next two decades, will arise and blend together to become a preeminent route where we produce sustainable energy, green energy supported by, perhaps some nuclear power and power produced from fossil fuels,” he added further.

Wietse ter Veld is the proud parent of two young ladies. He enjoys being a family man, helping his kids with their schoolwork and chauffeuring them to their various extracurricular activities. They have a blast visiting water parks, so he usually takes a day off to take them there. They are also enthusiastic campers, and ter Veld went on numerous trips with them over the winter. He also likes to exercise to counteract the time he spends sitting at his desk. He enjoys the usual array of athletic pursuits, from cycling to swimming to running.

Disclaimer: Views, thoughts, and opinions expressed by Mr. Wietse ter Veld in the article belong solely to Mr. Wietse ter Veld, and do not reflect the view of his employer, organization, committee or other group or individual.