GCC states, Egypt vie to become global leaders in green hydrogen

  • Date: 22-May-2023
  • Source: Zawya
  • Sector:Oil & Gas
  • Country:Egypt
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GCC states, Egypt vie to become global leaders in green hydrogen

Sovereign funds and other government entities in the Gulf states and Egypt have partnered with international energy firms, investing billions of dollars to develop green hydrogen plants.

Hydrogen, which is the lightest and most abundant element in the universe, can be burned as a fuel, producing only water as a by-product, used to store excess energy produced by renewable electricity, or converted into other substances. It is also a vital ingredient in many industrial processes such as steelmaking.

Historically, hydrogen has been manufactured from coal or gas in a process that creates huge carbon dioxide emissions. But its green variant, which currently represents less than 1% of global production, uses electrolysers powered by renewable electricity to split water into its constituent elements – oxygen and hydrogen - and so is carbon-free.

Cost remains a key challenge, although a European Investment Bank report says green hydrogen can be price competitive versus conventional hydrogen by 2030.

Saudi Arabia has pledged to become net zero in terms of carbon emissions by 2060 and the United Arab Emirates vows to do likewise by 2050. Both see green hydrogen as key to meeting their commitments.

Saudi Arabia is building a green hydrogen plant that will be the world’s largest, producing