UAE would need to double its clean hydrogen production target to meet export and domestic demand by 2031
Country has targeted 1.4 million tonnes by 2031 to corner quarter of global supply, but local demand could reach two million tonnes by then, government official tells conference
The UAE would have to almost double its clean hydrogen production target for 2031 in order to meet demand from both local industry and export markets, according to a senior government official.
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However, domestic demand from sectors such as refining, fertilisers, shipping, aviation, and steelmaking alone could require around two million tonnes of clean hydrogen by that year, according to government figures presented at the Connecting Green Hydrogen MENA conference in Dubai today.
“The base 1.4 million tonnes we will produce by 2031, but this does not limit our need to have [developers] on board and to have new projects to raise our ambition and make sure the UAE remains within the global competitiveness,” said Nawal Alhanaee, director of the Future Energy Department at the UAE Ministry of Energy and Infrastructure.
The country already targets a 25% reduction in emission from its hard-to-abate industries by 2031, which is expected to require substantial volumes of clean hydrogen.
And the shipping industry is expected to require around half a million tonnes of hydrogen by that year, with Alhanaee highlighting that the port of Fujairah is “the third bunkering hub” in the world after Singapore and Rotterdam.
Meanwhile, the government only anticipates demand to emerge in 2040 for clean hydrogen in road transport, and in 2050 to generate power for greater grid flexibility.
The UAE also expects that in 2031, 50% of its low-carbon hydrogen will be blue — produced from fossil gas with carbon capture and storage — and 45% green, made from renewables-powered electrolysis.
"We have the lowest levelised cost of energy when it comes to solar production, we have availability of gas to produce blue hydrogen as well,” Alhanaee added.
The remaining 5% will be “pink” — produced by electrolysis powered by nuclear electricity. The first nuclear plant in the UAE began its operations in 2020, with a nameplate capacity of 5.6GW, although it is still ramping up its power generation.
Alhanaee re-confirmed that the UAE plans to develop two hydrogen “oases” or hubs by 2031.
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