The UAE aims to capture 25% of the low-carbon hydrogen market, the value of which is expected to reach more than $400 billion a year over five years.
The green hydrogen project implemented by Dubai Electricity and Water Authority (Dewa) in cooperation with Expo 2020 Dubai and Siemens Energy at the Mohammed bin Rashid Al Maktoum Solar Park, is a key project in supporting the UAE's efforts to achieve global competitiveness in the green hydrogen market, a WAM report said.
Implementing the project, which is the first of its kind in the Middle East and North Africa to produce hydrogen using solar energy, the Solar Park contributes to achieving competitive prices in producing green hydrogen.
The production of green hydrogen is mainly carried out through electrolysis using renewable energy sources. Dewa received the lowest solar energy prices (Levelised Cost of Energy) globally five consecutive times, making Dubai a global benchmark for solar power prices.
In addition to that, Dubai provides clear and stimulating regulatory and legislative frameworks, which encourage the private sector and global investors and developers to participate in clean and renewable energy projects, using the Independent Power Producer (IPP) model.
Dewa has attracted investments of around AED40 billion ($11 billion) through this model, which encourages value-added partnerships between the public and private sectors.
Meanwhile, innovative technologies to produce green hydrogen using clean and renewable energy are witnessing rapid developments and steady progress, and studies indicate that green hydrogen production will increase by 57% annually to reach 5.7 million tonnes in 2030.
Experts highlight the fact that the abundance of solar energy sources in Dubai and the strong banking systems in the emirate, in addition to the advanced infrastructure and major projects such as solar parks, ammonia production plants, aluminium and steel factories, Dubai’s attraction of the finest experts and specialists from all over the world, contribute to making the UAE and Dubai an energy leader. This also consolidates the national economy's strength and diversity and develops the green hydrogen market in the UAE.
Saeed Mohammed Al Tayer, MD and CEO of Dewa, said that green hydrogen is one of the environment-friendly energy sources. It represents one of the pillars of a sustainable future that depends on accelerating the transition to carbon neutrality.
Dubai Clean Energy Strategy 2050
This achieves the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100% of Dubai’s total power capacity from clean energy sources by 2050.
"The Green Hydrogen project aligns with Dubai’s commitment to sustainability and its support for energy and climate change issues. It also supports the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to turn Dubai into a carbon-neutral economy by 2050, as well as Dewa’s strategy to diversify energy sources and increase investment by supporting innovation and research and development in energy storage technologies.
“This includes green hydrogen, which some describe as the 'Fuel of the Future' and will play an important role in the global energy mix and in combating the effects of global warming. The project supports the UAE Hydrogen Leadership Roadmap, which is a major driver for providing future solutions to climate change challenges and achieving the UAE's leadership in hydrogen," Al Tayer added.
Green mobility sector
Waleed bin Salman, Executive Vice President of Business Development and Excellence at Dewa, noted that Dewa had invited globally reputed consulting companies to submit their offers to develop an ambitious strategy for green hydrogen production.
The objectives are to develop the green mobility sector, reduce carbon emissions from various industries, and generate electrical and thermal energy, producing water and other applications.-- TradeArabia News Service