Low-Carbon Hydrogen Economy in the UAE

The UAE’s National Hydrogen Strategy aims to scale up local hydrogen production to 1.4 million tonnes per annum by 2031, and 15 million tonnes per annum by 2050. This is seen as a crucial step towards meeting the country’s ambition of achieving net-zero emissions by 2050.

With the aim of achieving climate neutrality, the UAE’s National Hydrogen Strategy includes measures to promote low-carbon local industries through the growth of the hydrogen economy. The UAE intends to become one of the world’s largest hydrogen producers by 2031. The strategy aims to develop long-term measures towards a sustainable energy policy and to direct further investments into this sector.

By 2031, 1.4 million tons of low-carbon hydrogen are to be produced annually via various production processes. Under the right market conditions, sectoral demand in the UAE could reach 2.1 million tons per year by 2031, with an additional export potential of 0.6 million tons per year. 

At the same time, investments in hydrogen research and development are to be stimulated and rendered widely accessible. Looking towards a defossilized future, the authors of the Hydrogen Strategy from Fraunhofer CINES and GHD conclude that the UAE’s low-carbon hydrogen production capacity could reach 7.5 million tons per year by 2040 and almost 15 million tons per year by 2050.

The strategy’s specific measures primarily include the creation of so-called hydrogen oases. These are hydrogen production hubs that will play a pioneering role by activating the domestic hydrogen market. At the same time, an appropriate policy framework will support the growth of the hydrogen industry and initiate cooperation with other countries in the region in the production, transport, and use of hydrogen, on the path toward a global hydrogen market. 

The researchers expect domestic as well as export demand for hydrogen to be significant – driven by the UAE’s net zero target for 2050 as well as by global demand for environmentally friendly hydrogen, sustainable aviation fuel, and sustainable chemical products.