UAE Will Capture 25% From Global Green Hydrogen Market
The UAE is heavily investing in the production of green hydrogen and ammonia as part of its strategy for clean energy transition and sustainability.
Mentioning that it is one of the global leaders in this field.
Moreover, the UAE aims to develop sustainable infrastructure to export these products to international markets.
Aligning with the goal of achieving carbon neutrality by 2050.
By 2030, the UAE will capture 25% of the global hydrogen market.
The country is home to the first green hydrogen production plant in the Middle East, which is considered the fuel of the future.
Investments in clean energy will reach $163 billion
By 2030, “Masdar” aims to produce 1 million tons annually.
While ADNOC is targeting an annual production of 300,000 tons.
With plans to increase investments in the clean energy sector to up to AED 600 billion ($163 billion) by 2050.
The UAE’s National Hydrogen Strategy aims to support low-emission local industries to achieve climate neutrality.
This position the UAE as a global leader in hydrogen production until 2031.
The strategy focuses on 10 enablers and outlines key steps to accelerate the growth of the hydrogen economy and reduce emissions in high-emission sectors.
The report also highlighted that the UAE and Saudi Arabia are building strong bases for producing and exporting green hydrogen as a clean energy source.
This is part of their efforts to transition to renewable energy and diversify their economies away from oil dependence.
UAE Energy Strategy 2050
As part of the updated UAE Energy Strategy 2050, the country goals are as below:
- Triple renewable energy sources by 2030
- Increase clean energy capacity to 19.8 gigawatts by the same year
- Raise the contribution of installed clean energy capacity to 30% of the total energy mix.
The National Hydrogen Strategy also targets the production of 1.4 million tons of low-emission hydrogen annually by 2031.
It also plans to increase this to 15 million tons annually by 2050.
Green Ammonia Will Account for 45% of Energy Demand in the Shipping Sector.
The Interregional Center also highlighted Saudi Arabia’s significant investments in green hydrogen under its Vision 2030.
The NEOM project is one of the largest in this field, with plans to establish a green hydrogen plant costing approximately $5 billion.
It will begin operations by 2025 with the goal of producing 650 tons of green hydrogen daily.
The International Energy Agency predicts that green ammonia will account for 45% of energy demand in the shipping sector.
Compared to only 15% for green hydrogen, under the scenario of achieving carbon neutrality by 2050.
This means that the use of green ammonia will be three times higher than that of green hydrogen in maritime shipping.
The UAE, represented by the Ministry of Energy and Infrastructure, participated in the BRICS Energy Ministers’ Meeting, which was recently hosted by the Russian capital, Moscow.
The UAE’s participation stems from its belief that multilateral international cooperation has become… pic.twitter.com/qaVPdnPNce
— UAE Voice (@uae_voiceeng) October 4, 2024
UAE: The First Arab Country to Invest in Green Hydrogen
The Arab interest in green ammonia began in 2021.
This was when the UAE launched the first project using 40,000 tons of green hydrogen at a cost of $1 billion.
Egypt also launched a green ammonia production project during COP 27, targeting 42,000 tons in its first phase.
The report from Interregional emphasized that the world is witnessing major projects in green hydrogen and ammonia.
These projects include:
- “Beaumont” in the USA, which will start production in 2025 with a capacity of 1.1 million metric tons annually.
- “Unigel” project in Brazil with investments of $1.5 billion
- The Canadian-German project between EverWind Fuels and E.ON Hydrogen to supply green ammonia to Germany starting in 2025
- The Australian Fortescue-Incitec Pivot project to produce around 400,000 tons of green ammonia annually by 2026
