Global cleantech is growing rapidly, due to the pressing need for sustainable solutions as well as the reduction of carbon emissions. Globally, the market for clean energy technologies will be worth $650 billion annually by 2030. This is three times more than what it is today, as countries around the world are fulfilling their energy and climate change commitments. Investors are becoming more interested in sustainable innovations. The average deal size for climate technology has quadrupled between 2020 and 2021 to reach $96 million.
Over 80% of the potential reduction in emissions can be attributed globally to five primary technologies: Solar Power, Wind Power Technology, Green Hydrogen Production and Alternative Foods/Low-GHG Proteins. Wind and solar power accounted for a record 12% of global electricity production last year. This is up from 10% by 2021. Carbon capture, utilisation, and storage (CCUS), a technology that captures up to 90% of CO2 emissions, is also being developed. IoT devices will reduce food waste in the next 4 years by 20%. Green hydrogen could have a profound impact on renewable energy. Production costs are expected to fall by half by 2030. Alternative low-GHG protein sources will account for 11% of the protein consumed by 2035.
Qatar and the MENA are experiencing growth in the cleantech sector, driven by favourable policies, national strategies and sustainability initiatives, as well as abundant resources like solar energy. Gulf oil companies have an advantage in the early adoption of green hydrogen production, while technology-based agriculture has revolutionized the region’s agricultural sector.
Cleantech Highlights for the Region:
Growth in Sector: The rate of growth for renewable energy in the MENA will increase by 8% annually from 2010 to 2035.
- Sunlight: The MENA region receives from 22% to 26% of the solar energy that strikes the earth. This increases the potential for a vibrant and growing renewable energy sector.
- The Rise of Solar Power By 2025, the installed solar capacity in MENA will increase to almost 40 GW.
- Green Sector Employment The GCC is aiming to reduce oil consumption in the renewable sector by 23% by 2030.
According to a study conducted by the Investment Promotion Agency Qatar, Qatar has a dynamic, integrated value chain in cleantech, which offers a wide range of investment opportunities. Qatar’s delegation recently showcased the country’s potential to be an emerging leader in cleantech, thanks to a dynamic and integrated value chain that encompasses tech development, manufacturing and distribution, project development and services.
IPA Qatar, for example, has partnered up with energy giants such as Iberdrola Group in order to implement and explore clean energy projects. In Qatar, the IPA Qatar and Iberdrola partnership will see the creation of a leading centre for digital utility. The partnership also supports the expansion and growth of Research, Development, and Innovation activities (RDI) by the Spanish group through Iberdrola Innovation Middle East, based in Doha. This hub addresses technology challenges related to innovation and digitalisation in the electrical grid by developing solutions for smart grids and renewable energy integration.
Qatar’s abundant solar energy resources make it well-positioned to benefit from hydrogen production. This is crucial for decarbonising sectors that are difficult to abate. Qatar’s abundant natural gas, low-cost electricity and a highly-connected, efficient electricity grid are also key factors in enabling hydrogen production.
QatarEnergy announced that it would build the largest blue ammonia production plant in the world. It is expected to be operational by 2026 and produce 1.2 million tonnes of ammonia per year. The USD 1 billion project also supports Qatar’s goal to develop its carbon capture and storage facilities to sequester up to 11 million tonnes of CO2 annually by 2035.
Qatar strives, based on WHO guidelines, to reduce greenhouse gas emissions and conserve land while promoting biodiversity in order to improve indoor air quality. The construction of Lusail City – the country’s sustainable flagship city – and the development of a renewable energy-powered metro rail transport network are examples of these efforts.
Cleantech is a growing industry, thanks to the emergence of hydrogen and renewable sources in the MENA area, as well as international partnerships. Qatar’s efforts to combat climate change and promote clean technologies extend beyond national boundaries. QatarEnergy, Royal Dutch Shell and other companies agreed to invest jointly in UK blue and green hydrogen project a few years back. QatarEnergy and Korea’s Hydrogen Convergence Alliance’s (H2Korea’s) agreement supports multilateral efforts for accelerating cooperation in hydrogen-related technologies around the world.
Qatar’s commitment towards sustainability is reflected in its willingness to invest and collaborate with innovative technologies. This demonstrates Qatar’s dedication to a more sustainable and greener future.
