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Home Home - Middle east
MENA's Strategic Roadmap for Low-Carbon Hydrogen

MENA’s Strategic Roadmap for Low-Carbon Hydrogen

Anela DoksoBy Anela Dokso20/12/20232 Mins Read
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In a historic turn of events, COP28 concluded on December 13, culminating in what is now known as the “UAE consensus.” The closing text of the conference carries a groundbreaking deal signaling a transition away from fossil fuels—a watershed moment after decades of climate negotiations.

For the United Arab Emirates (UAE) and the broader Middle East and North Africa (MENA) region, this deal aligns with a strategic move towards a sustainable future, leveraging the proceeds of their extensive oil and gas industry.

The primary goal of the MENA region, as reinforced by the COP28 deal, is to diversify its economy steadily and transition towards sustainability. This shift involves capitalizing on the wealth generated by the vast oil and gas industry to nurture a more sustainable society. A key focus within this broader goal is the low-carbon hydrogen sector, identified as pivotal in driving transformative shifts within the global energy landscape.

In the journey leading up to COP28, several key announcements have accelerated transformative shifts, particularly in the low-carbon hydrogen sector. The Intergovernmental Declaration of Intent on Mutual Recognition of Certification Schemes for Hydrogen and Hydrogen Derivatives is a crucial step, offering opportunities for green premiums. Additionally, the International Standards Organization’s methodology for assessing greenhouse gas emissions for low-carbon hydrogen (ISO standard TS 19870) ensures a verifiable approach for certification schemes. Noteworthy are the ambitious hydrogen production targets set by countries in the MENA region, such as Masdar (UAE) and NEOM Green Hydrogen Company (Saudi Arabia).

The MENA region, holding 52% of global oil reserves and 43% of global gas reserves, is strategically positioned to lead the way in the low-carbon hydrogen economy. With abundant renewable energy resources, the region aims to export its clean hydrogen through established value chains. This move has broader implications, contributing to reducing global reliance on imported petrochemicals and enhancing the region’s self-sufficiency in the critical sector.

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