GCC countries can be one of the most competitive locations globally to produce and export green hydrogen and derivatives such as green ammonia or power fuels, thanks to unique natural (solar & wind) resources, abundant space as well as world class infrastructure and expertise.
The lowest-cost solar and wind energy globally make the GCC region potentially one of the most competitive for hydrogen production. A recent tender in Saudi Arabia was awarded for a price of USD 0.0104/kWh. Taking advantage of the Oil & Gas economy, significant funding is available through sovereign funds as well as international investors. Furthermore, the region has a proven track-record in building and operating export infrastructure and it has a central location to future large energy demand markets, such as the European and East-Asian markets. Lastly, the region highly qualified workforce in the oil& gas sector also represents a major opportunity for the development of the hydrogen economy in the region. In addition to the export market, GCC countries could cater for their regional demand.
Key findings of the joint paper include:
- Long term renewable energy deployment of up to 1,000 GW, with up to 500 GW electrolyzer capacity, leading to the production of approximately 100m MT of green hydrogen.
- Annual revenues from green hydrogen in GCC could grow up to USD 200 bn by 2050.
- High job creation potential across different parts of the value chain: Up to 1 million jobs by 2050.
- Different projects under development mark the start of a big movement with countries like Saudi Arabia e.g. planning to become the world’s largest exporter of green hydrogen.
- International experiences from hydrogen valleys show that this concept could be a key enabler in creating local hydrogen economies.
- GCC countries should address four key enablers to unlock the green hydrogen potential
Among the partners that contributed to the paper, Masdar has played an important role during the series of interviews. Masdar and Dii Desert Energy share the belief that innovation and partnerships will accelerate the global energy transition towards cleaner energy sources and that green hydrogen is a key enabler to achieve a long-term sustainability strategy for socio-economic development and green job creation.