UAE's Ambitious Plans for Green Hydrogen Production
Key Ideas
- The UAE, particularly Masdar, is focusing on producing green hydrogen through electrolysis.
- Global demand for low-emission hydrogen is expected to rise significantly by 2030.
- The UAE's competitive electricity prices from solar power make it an ideal location for cost-effective green hydrogen production.
In the world of hydrogen production, different colors are used to categorize the source of hydrogen, with green being produced from renewable energy sources. The United Arab Emirates (UAE) is placing a strong emphasis on 'low carbon' hydrogen, particularly green hydrogen that will be generated through electrolysis. The UAE's energy company Masdar plans to produce half of this green hydrogen within the country. While global demand for hydrogen was approximately 100 million tons last year, only 1 million tons were of the low-emission variety. The International Energy Agency (IEA) projects that the demand for low-emission hydrogen will increase to 6 million tons annually by 2030. The UAE is deemed to have the right conditions for cost-effective green hydrogen production due to its track record of delivering competitive electricity prices from solar power, making it an attractive location for such initiatives.