Dubai, UAE – In a bold move to cement its position as a leader in the global energy transition, the United Arab Emirates (UAE) has unveiled an ambitious national hydrogen strategy that aims to transform the country into a top producer and exporter of low-carbon hydrogen by 2031.
The strategy was developed in partnership with the Fraunhofer Cluster of Excellence Integrated Energy Systems (CINES) and GHD Advisory. It outlines a comprehensive 10-point framework to accelerate the growth of the UAE’s hydrogen economy. Additionally, it supports the broader goal of achieving net-zero emissions by 2050.
“Low-carbon hydrogen will play a prominent role in decarbonizing the UAE’s hard-to-abate sectors,” said H.E. Suhail Mohamed Al Mazrouei, the UAE’s Minister of Energy and Infrastructure. “These sectors include heavy industry, long-haul transport, aviation, and shipping.” “This strategy positions the UAE as a global leader in the hydrogen economy and a key partner in the global energy transition.”
Aggressive Production Targets
At the heart of the strategy are the UAE’s bold production targets. By 2031, the country aims to produce 1.4 million tonnes per annum (mtpa) of low-carbon hydrogen. This includes blue, green, and pink hydrogen. This target is set to skyrocket to 15 mtpa by 2050, cementing the UAE’s position as one of the world’s largest hydrogen producers.
Hydrogen Oases and Domestic Demand
To achieve these goals, the UAE plans to establish at least two “hydrogen oases” – clusters of hydrogen production and end-use applications – by 2031, with the number growing to five by 2050. These oases will likely be located near depleted oil wells and salt caverns, leveraging the country’s existing energy infrastructure.
The strategy also prioritizes developing domestic demand for hydrogen, with forecasts showing a five-fold increase in sectoral consumption from 2.1 mtpa in 2031 to 10.1 mtpa by 2050. This will involve decarbonizing hard-to-abate industries like steel, aluminum, cement, and heavy transport.
Enabling Policies and Investments
To support the hydrogen economy’s growth, the UAE is developing a robust policy framework, including incentives to stimulate both supply and demand. This could involve carbon pricing mechanisms, low-interest financing for projects, and measures to provide price certainty for clean hydrogen.
The strategy also calls for significant investments. The UAE plans to infuse between AED 150 billion and AED 200 billion (USD 40.8 billion to USD 54.4 billion) by 2030. This is to meet the country’s growing energy demands and sustain economic growth.
Collaboration and Innovation
The UAE’s hydrogen strategy emphasizes the importance of regional and global collaboration, as well as investment in research and development. For instance, the country is working with partners like the UK, Oman, and Saudi Arabia to develop cross-border hydrogen projects. Additionally, these efforts aim to establish a thriving regional market.
Additionally, the UAE aims to position itself as a global center of hydrogen research excellence. Plans include a dedicated Hydrogen Innovation Hub to drive the development of next-generation production, storage, and end-use technologies.
“The UAE’s hydrogen strategy is a bold and comprehensive plan that positions the country as a global leader in the clean energy transition,” said Sharif Al Olama, Undersecretary for Energy and Petroleum Affairs at the Ministry of Energy and Infrastructure. “By leveraging our natural advantages and investing in innovation, we are confident that the UAE will become a dominant force in the emerging global hydrogen economy.”
Citations:
[1] https://renewablesnow.com/news/uae-publishes-hydrogen-strategy-ahead-of-cop-28-840671/
[2] https://www.ghd.com/en/insights/creating-a-brighter-tomorrow-for-the-uae
[3] https://etn.news/buzz/uae-national-green-hydrogen-production-hubs-targets-strategy
[4] https://www.aoshearman.com/en/insights/nine-key-takeaways-from-the-uaes-new-hydrogen-strategy
[5] https://www.cines.fraunhofer.de/content/dam/zv/cines/dokumente/2023_UAE_National_Hydrogen_Strategy_Fraunhofer_GHD.pdf
