France’s Engie, a key player in low-carbon energy and services, has unveiled plans to initiate hydrogen projects in Saudi Arabia, the UAE, and Oman as part of its global strategy to achieve 4 gigawatts of green hydrogen capacity by 2030.
Stephan Gobert, Engie’s senior vice president of hydrogen for Asia, Middle East, and Africa, highlighted the immense potential offered by the Middle East region, particularly the Gulf Cooperation Council (GCC), where Engie has formed a strategic alliance with Masdar and is currently exploring a project in Ruwais for Fertiglobe.
Engie’s collaboration with Fertiglobe, a chemicals joint venture between Abu Dhabi National Oil Company (Adnoc) and OCI, aims to establish a green hydrogen facility in the UAE for ammonia production. The facility, scheduled to be operational by 2025, is projected to have a potential capacity of up to 200 megawatts, with Fertiglobe serving as the exclusive long-term off-taker. This initiative aligns with Engie and Masdar’s $5 billion partnership to develop the hydrogen economy in the UAE and other projects in the region, targeting a combined capacity of at least 2 gigawatts by 2030.
The increasing demand for hydrogen stems from various countries’ efforts to decarbonize and meet ambitious net-zero targets. Hydrogen, produced through renewable energy sources (green hydrogen) or natural gas (blue hydrogen), holds significant promise in facilitating the transition to a low-carbon world. Natixis, a French investment bank, forecasts that hydrogen-related investments will surpass $300 billion by 2030.
Engie’s goals extend beyond hydrogen production, encompassing the establishment of over 100 hydrogen refueling stations worldwide within the next seven years. Additionally, the company aims to construct approximately 700 kilometers of dedicated pipelines and storage capacity to enhance hydrogen infrastructure. Engie is currently operating around 30 hydrogen refueling stations in Europe, with plans for an additional 20 installations.
The Middle East, with its abundant land resources and affordable renewables, holds substantial potential for hydrogen exportation to regions such as the European Union, South Korea, and Japan. The EU, facing limitations in installing new renewables due to grid saturation, presents a prime market for Middle Eastern hydrogen exports. As countries in the region, including the UAE, increase their investments in renewables and strive to lower carbon emissions, the path to becoming a leading hydrogen-producing nation becomes clearer.
Engie’s commitment to hydrogen aligns with the broader global shift towards sustainable energy solutions. As the cost of hydrogen production decreases, driven by advancements in technology and the declining cost of renewable energy, the prospects for widespread adoption of hydrogen as a clean fuel source continue to grow.
With operations in 31 countries, Engie remains focused on driving the energy transition and delivering sustainable solutions. In the first quarter of 2023, the company reported a net revenue of €29.2 billion ($32 billion), a notable increase of 14 percent compared to the same period the previous year.
