The potential of hydrogen in the Gulf States

The potential of hydrogen in the Gulf States

Although key barriers remain, the worldwide potential of hydrogen is vast. Some estimate an investment pipeline of $300 billion, with hydrogen possibly supplying 18% of global energy by 2050. The Gulf States are particularly well placed to capitalise as producers and exporters of clean hydrogen.

The reasons for this lie in the natural characteristics of the region and the commercial features of the economies within. Many of the Gulf States have abundant and low-cost land, existing power expertise, an active international investment environment, and ideal renewable generation technical conditions (long hot days and windy nights). States like the UAE have also demonstrated the ability to push down PV prices through management of public procurement, promoting tenders and driving increased competition. The result is a distinct competitive edge over other green hydrogen producers, for whom the cost of the renewable energy required for electrolysis is frequently prohibitive.