GCC countries have the potential to be one of the most competitive locations in the world for producing and exporting green hydrogen and derivatives such as green ammonia or power fuels, owing to their unique natural resources (solar and wind), abundant space, and world-class infrastructure and expertise.
The GCC region’s low-cost solar and wind energy make it one of the most competitive regions in the world for hydrogen manufacturing. In Saudi Arabia, a recent tender was awarded at a price of USD 0.0104/kWh. Profiting from the oil and gas economy, substantial funding is accessible through governmental funds and international investors.
Additionally, the region has a track record of developing and running export infrastructure, and it is strategically located near prospective big energy demand markets, including Europe and East Asia.
Finally, the region’s highly qualified workforce in the oil and gas sector represents a significant opportunity for the region’s hydrogen economy to grow. Along with the export market, GCC countries might meet domestic demand.
Among the collaborators on the article, Masdar played a critical role during the series of interviews. Masdar and Dii Desert Energy believe that collaboration and innovation will speed the global energy transition to greener energy sources and that green hydrogen is a critical enabler of a long-term sustainable plan for socioeconomic growth and green job creation.
Mohamed Jameel Al Ramahi, the CEO of Masdar, said: “Green hydrogen has great potential not just as a fuel of the future, but as the foundation of an industry requiring new technology and a new generation of skilled employees. The demonstrator plant we are building in Masdar City with our partners will go a long way to proving the commercial viability of green hydrogen.”
Cornelius Matthes, Chief Executive Officer of Dii Desert Energy, said: “Building on the first major study of the job creation potential for the solar & wind value chain (Economic Impacts of Desert Power, 2013), Dii is thrilled about the partnership with Roland Berger to jointly analyze the job creation potential of the entire hydrogen value chain, a huge opportunity for the GCC region. Creating sustainable jobs and good perspectives, particularly for young people, are an integral part of the socio-economic development and the hydrogen value chain provides a great opportunity for the much needed diversification of the economies in the region.”
Vatche Kourkejian, Partner at Roland Berger, said: “The GCC region is on the verge of a new era similar to the discovery of oil decades ago. In our joint study with Dii Desert Energy, we showcase the huge potential that green hydrogen pauses for the GCC region and the opportunity to continue being the main energy supplier to the world in a sustainable manner. The study looks at green hydrogen’s job creation potential as well as the opportunities for localization of parts of the value chain, which would be transformative for the region’s economy and drive for diversification.”
