UAE, Saudi Arabia lead Arab investments in green hydrogen

Regional heavyweights UAE and Saudi Arabia are working to build a strong base for producing and exporting green hydrogen as a clean energy source, thus enhancing their position as leaders in this sector regionally and globally, according to the Abu Dhabi-based Interregional Center for Strategic Analysis..

This comes as part of their efforts to shift towards renewable energy and diversify their economies away from dependence on oil.

The emirates is investing heavily in the production of green hydrogen and ammonia, as part of its strategy to shift towards clean energy and sustainability, stated the report.

The country is considered one of the world’s leading countries in investing in this field, and seeks to develop a sustainable infrastructure that enables it to export these products to global markets, in line with the vision of achieving carbon neutrality 2050, it added.

The UAE owns the region's first station for production of green hydrogen, which is considered the fuel of the future. According to experts, it is expected to capture 25% of the global hydrogen market in 2030.

Masdar aims to produce one million tons annually by 2030, while Adnoc’s production reaches 300,000 tons annually, while the emirates intends to increase investments in the clean energy sector to up to AED600 billion ($163 billion) by 2050.

The UAE’s National Hydrogen Strategy aims to support local low-emission industries, contribute to achieving climate neutrality, and enhance and achieve global leadership in hydrogen production by 2031.

The strategy focuses on 10 enablers, and outlines the key steps the UAE will take to accelerate the growth of the hydrogen economy and reduce emissions in high-emission sectors.

Interregional analysis indicated that the UAE and Saudi Arabia are working to build a strong base for producing and exporting green hydrogen as a clean energy source, which enhances their position as leaders in this sector regionally and globally as part of their efforts to shift towards renewable energy and diversify their economies away from dependence on oil.