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UAE cabinet backs ambitious hydrogen strategy

The UAE aims to produce 1.4mn t/yr of low-carbon hydrogen by 2031 and 15mn t/yr by 2050 under a national hydrogen strategy approved by the cabinet this week.

The strategy includes the creation of two hydrogen “oases” with renewable power generation by 2031, with a further three to be developed by 2050, according to Suhail al-Mazrouei, minister of energy and infrastructure.

The Gulf state, which will host the Cop28 global climate talks later this year, also aims to set up a centre for hydrogen research and development by 2031.

“It is a long-term plan to turn the UAE into a leading and reliable producer and supplier of low-carbon hydrogen by 2031,” Mazrouei told state news agency Wam. “The strategy serves as a crucial tool to help the UAE achieve its commitment to net zero by 2050 and accelerate the global hydrogen economy.”

1.4mn t/yr – Production target for 2031

The hydrogen strategy includes building domestic demand, developing a regulatory framework and policies, strengthening regional collaboration, and bolstering investments in research and development, says Sharif al-Olama, under-secretary for energy and petroleum affairs.

The aim is to create thousands of hydrogen sector jobs by 2050 and to reduce emissions in hard-to-abate sectors such as heavy industries, land transport, aviation and sea freight by 25pc by 2031, he adds.

The UAE’s strategy in terms of hydrogen production technologies remains unclear, although Masdar, the state’s main vehicle for the development of clean energy and hydrogen, has signalled an emphasis on electrolytic production.

Masdar aims to produce 1mn t/yr of green hydrogen by 2030, a target originally set in 2021, Mohammad el-Ramahi, the company’s CEO told the FT Hydrogen Summit in London in June. He said Masdar was struggling to sign offtake deals at viable prices and called on European policymakers to implement policies and offer more incentives to drive demand.

Energy strategy

In addition to the hydrogen strategy, the UAE cabinet approved an updated 2050 energy strategy that aims to triple the share of renewables in the domestic energy mix and to raise the total share of clean energy—including renewables and nuclear—to 32pc by 2030.

As one of the first countries in the region to ratify the Paris Agreement and as the host of Cop28, the UAE is committed to joining forces with the international community to drive collective action to limit global warming, Mazrouei says.


Author: Stuart Penson