The UAE has released a hydrogen strategy targeting a 25pc global market share in key export markets.

The markets identified include Japan, South Korea, Germany and India, as well as other European and Asian countries.

“Our nation will be well-placed to continue delivering on ambitious growth projects across the clean hydrogen value chain, leveraging the UAE’s existing position as an early mover,” says Sultan bin Ahmed al-Jaber, UAE’s minister for industry and advanced technology.

The strategy has five key strands to enable the development of hydrogen production: a clear regulatory framework backed by policies, incentives and standards; private sector collaborations to enable faster technology R&D; public sector knowledge-sharing; a fast-track domestic approval process; and access to adequate financing from domestic funds and international capital markets.

UAE firms have signed five major collaboration deals this year, including a recent UK-UAE deal to develop 2GW of blue hydrogen. The UAE has seven hydrogen projects that are either completed or underway, and is looking to develop a UAE hydrogen hub in collaboration with BP.

$1tn – Potential value of global hydrogen market

Emirati NOC Adnoc announced plans in May to build a blue ammonia project and a green ammonia project in Abu Dhabi powered by an 800MW solar plant.

The UAE estimates the market for low-carbon hydrogen to be valued at between $400bn and $1tn.

The nation could produce blue hydrogen for as little as $1.3/kg based on IEA estimates for gas prices, according to a report from consultancy Qamar Energy. The UAE has access to cheap natural gas—the main feedstock for blue hydrogen—and its CO₂ storage costs are likely to be lower than most countries.

Low renewable costs also make the region attractive for green hydrogen production. The 2GW Al-Dhafra photovoltaic plant agreed a power-purchase agreement in 2020 at 1.35¢/kWh—one of the lowest rates anywhere in the world.

The hydrogen strategy forms a key part of the UAE’s strategy to reach net-zero emissions by 2050.

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Author: Tom Young