UAE Well-Placed in Global Hydrogen Market Estimated at $2.5 Trillion
The global market for hydrogen is estimated to be worth around $2.5 trillion and the UAE is particularly well positioned not only to generate, but to export, this valuable resource, the AD Ports Group stated.
"We are living through a period of unprecedented volatility where questions surrounding the supply of commodities ranging from food, raw minerals and energy generation remain front and centre," AD Ports Group stated in an article posted on Linkedin today.
Spurred on by international treaties such as the Paris Agreement, climate action has seen a wider move towards alternative energy sources, with an emphasis on decarbonisation, it stated.
The UAE’s commitments include reducing GHG emissions by 23.5% below business-as-usual projects by 2030, while the UAE National Energy Strategy 2050 aims to increase the share of clean energy to 50%, thereby reducing the final energy consumption by 40%.
The UAE has made giant leaps in supporting the transition to clean energy, having invested $16.8 billion towards renewable energy projects across 70 countries.
Bolstered by the successful development of major infrastructure projects such as the Al Dhafra PV2 solar power plant in Abu Dhabi, the UAE’s Nationally Determined Contribution (NDC) highlighted one other form of energy as “a fuel for the future” – hydrogen.
The Group further stated that the addressable market for hydrogen is estimated to be worth around $2.5 trillion and the UAE is particularly well positioned not only to generate, but to export.
As an industry leader within the logistics and maritime sectors, sustainability remains at the core of our business, meaning we are fully committed to meeting global sustainable development goals – while supporting the UAE’s Net-Zero by 2050 initiative.
As an industry with significant potential demand for the logistics and maritime sectors, we understand why the UAE is strategically positioned to lead both clean energy production and exports and how it works seamlessly with the UAE’s pillars of sustainability and innovation.
Conveniently located on the sunbelt with the highest yearly solar energy input out of 207 regions, the UAE is also home to one of the lowest tariffs in the world, with a 76% drop in prices in the past four years.
In addition to its existing infrastructure and partnerships, the UAE has a combination of abundance, cost, location, strong relationships, well developed economic zones, like KIZAD, and robust logistical and maritime facilities to ensure supply and delivery.
"At AD Ports Group, our approach towards the hydrogen industry is driven by three key areas – to develop, support and diversify its usage, thereby adding value to the domestic economy while enhancing Abu Dhabi’s value as a global destination for industry players."
"As an example, by leading and developing key port and logistics infrastructure to facilitate and control the supply of green hydrogen, we are actively working with customers like Helios and utility champion TAQA, which is planning to develop a 2.5 GW solar power plant."
The plant will produce 360,000 mt of green hydrogen largely meant to support the energy needs of Europe and Asia.
"Additionally, AD Ports Group is also proud to be a part of The Port of Rotterdam’s and other European ports' strategy to supply Europe with 4.6 megatons of hydrogen by 2030."
In more widespread uses that will attract businesses to ‘plug and play’, our hydrogen production will be converted into LOHC and green ammonia, which can be transported by either road or pipeline to provide a local offtake of steam and hydrogen for tenants.
"We will simultaneously enable the bunkering of ammonia and other green fuel – which can be exported from Khalifa Port."
"When combined with the UAE’s recent reforms on foreign ownership and residence, AD Ports Group adds yet another vital component to hydrogen’s burgeoning success in the region, and a highly valued revenue stream as an emerging source of renewable power," the article concluded.
Read More: Dubai Inaugurates Green Hydrogen Project