Green hydrogen industry set to reach $ 700 billion by 2050

Arthur D. Little is seeing greater interest in green hydrogen among policymakers and industry players in the Middle East, according to their latest report. Titled Paving the Way for Green Hydrogen: Key Considerations for Green H2 Deployment, the paper examines the role that green hydrogen will have in the future, in developing promising use cases and the next steps needed for a successful deployment.

The report indicates three conditions necessary for the success of green hydrogen production projects: competitive production in terms of costs, reliability of production and supply, and hedging of risks to attract investors. Potential hydrogen demands are also examined, while decision makers are given an analysis of valuable opportunities, risk mitigation, and other policy and infrastructure risks and conditions.

Although ambitious goals are now being pursued through related projects, the opportunities that accompany the green hydrogen economy depend on several policy, supply, infrastructure and demand conditions.

“Decarbonization has once again been placed at the top of the global agenda and countries are actively seeking to reduce their emissions and switch to clean energy sources,” said Carlo Stella, partner at Arthur. D Small Middle East. “Green hydrogen has been identified as a key technology to meet decarbonisation ambitions, if the basic conditions and some urgent requirements are met in the short term. “

Many governments in the Middle East, particularly Saudi Arabia and the United Arab Emirates, are currently exploring opportunities that can be exploited in this area, as green hydrogen helps reduce economic dependence on hydrocarbons. and contributes to economic development and the diversification of energy supply. In addition, foreign policy and bilateral agreements also reinforce the importance of the green hydrogen economy.

Already in 2021, Saudi Arabia announced a strategic green hydrogen development alliance with Germany to generate, process, use and transport clean hydrogen, which represents significant progress as the Kingdom seeks to produce greater volumes of green hydrogen. Likewise in the United Arab Emirates, a green H2 project was inaugurated at the Mohammed bin Rashid Al Maktoum solar park in Dubai in May 2021. In collaboration with Dubai Electricity and Water Authority, Expo 2020 Dubai and Siemens Energy, the project is the first solar – green hydrogen production plant in the Middle East and North Africa region.

While many places have no shortage of unique renewable energy sources, few are currently able to meet the minimum requirements for multiple sources.

“Although green hydrogen projects are continued and more investments are finalized, this momentum can only continue if prosperous conditions are guaranteed in the fields of politics, supply, infrastructure and request, ”Stella concluded. “Through a collective effort based on transparency, collaboration and innovation, interested parties can meet the decarbonisation commitments of companies and countries, by successfully deploying green hydrogen to open a new chapter in the transformation of renewable energies. “

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