NTPC’s green energy arm eyes USD 1.2bn from Indian IPO
Sep 19, 2024 11:52 CESTIn 2023, nations in the Middle East and North Africa (MENA) region worked towards advancing the development of low-carbon hydrogen, utilising the region's extensive potential. They actively attracted projects and progressed strategic initiatives and policies to achieve this goal. This collective commitment reached a significant milestone during the COP28 summit in Dubai at the year's end.
This article sheds light on the major developments in the green hydrogen sector in the region. It is based on a new intelligence report developed in collaboration with World Hydrogen Leaders for the upcoming World Hydrogen MENA Congress, which will take place from February 26 to February 29 in Dubai. The free report is available here.
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The role of green and low-carbon hydrogen in decarbonisation was affirmed at the COP28 summit in Dubai with the launch of several initiatives – a declaration of intent on mutual recognition of certification schemes for hydrogen and its derivatives, a methodology for the assessment of greenhouse gas emissions (GHG) in hydrogen production pathways, and a public-private action statement on cross-border trade corridors. Countries in the region participated actively in the summit with the UAE, Egypt, Oman, and Morocco signing the certification declaration.
UAE
A milestone for COP28 host UAE preceding the climate summit was the release of its National Hydrogen Strategy. The document outlines measures to enhance investment in the hydrogen industry in order to make the nation a leading low-carbon hydrogen producer, targeting 1.4 million tonnes by 2031.
The Gulf country will rely on blue, green, and pink hydrogen, with PEM technology preferred for green hydrogen production. With favourable conditions, the domestic sectoral demand is projected to reach 2.1 million tonnes annually by 2031, with an additional export potential of 0.6 million tonnes per year. Due to increasing decarbonisation efforts, the UAE's low-carbon hydrogen production capacity could reach 7.5 million tonnes by 2040 and nearly double to around 15 million tonnes by 2050.
SAUDI ARABIA
Saudi Arabia, a major oil producer, aspires to become a significant hydrogen exporter. The Neom green hydrogen project, located in the Tabuk province in the northwest, achieved a milestone in May 2023 by becoming the first gigawatt-scale green hydrogen scheme to reach a final investment decision (FID). The project, valued at USD 8.4 billion, is led by Saudi Neom Green Hydrogen Company, ACWA Power, and Air Products. They secured USD 6.1 billion in non-recourse financing from 23 banks and investment firms.
The Neom project differentiates itself with a 30-year off-take agreement with co-owner Air Products which committed to purchase all produced green ammonia, projected at over 1.2 million tonnes annually. Currently under construction, the plant is set to be commissioned in 2026, featuring alkaline electrolysis technology from Thyssenkrupp Nucera.
EGYPT
The government of Egypt is actively promoting the development of green hydrogen projects with tax and non-tax incentives, aiming for around USD 81.6 billion in foreign direct investments by 2035. The country's renewable energy resources and strategic location have attracted international developers, leading to the signing of 29 memoranda of understanding, with nine progressing to framework agreements within the Suez Canal Economic Zone (SCZone), totalling USD 85 billion in investments. The majority of green hydrogen projects in Egypt are concentrated in the SCZone, favoured for its proximity to the Suez Canal, a crucial global trade route.
In 2023, Egypt continued to attract international investors with a focus on green methanol production, seeking to leverage the strategic location of the Suez Canal to meet the demand for ship supplies. The most significant announcements include C2X, the newly established subsidiary of shipping major AP Moller-Maersk A/S with its USD 3 billion initiative to produce 300,000 tonnes of green methanol, and Norwegian renewables developer Scatec which strengthened its commitment to the green hydrogen sector in the country with a USD-1.1-billion green methanol project targeting the output of 100,000 tonnes per year. Scatec also joined forces with Alexandria National Refining and Petrochemical Company (ANRPC) to develop a USD 450 million green methanol project in the port of Damietta to supply the shipping industry.
OMAN
According to a recent report from the International Energy Agency (IEA), Oman has the potential to position itself as the sixth-largest global exporter of hydrogen by the end of this decade. In 2023, the Sultanate made progress in the implementation of its National Hydrogen Strategy launched in 2022. The first round of the auction system under the strategy selected five green hydrogen production projects worth a total investment of about USD 30 billion. The projects initiated by both local and international companies are designed to enable the annual production of approximately 750,000 tonnes of green hydrogen. The objective is to ensure Oman reaches its 2030 target of producing around 1 million tonnes of the green molecule annually.
World Hydrogen MENA brings together the entire hydrogen value chain across the region and the rest of the world to accelerate global clean hydrogen development and address the latest developments, challenges and opportunities facing hydrogen in the MENA region. Its extensive programme includes topics such as project financing, demand generation, guaranteeing offtake agreements, scaling-up to giga scale projects for export and hydrogen storage and distribution strategies. To view the full agenda, download the brochure here or register your place here.
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