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The Gulf state has revised its energy strategy to include ambitious targets for hydrogen production and renewable energy capacity
Image Credit: British Centres for Business
Hydrogen: a key part of the energy mix
The United Arab Emirates (UAE) is one of the world’s top oil exporters, but it is also preparing to host the UN’s climate conference COP28 from the end of November. As part of its efforts to showcase its climate credentials, the Gulf state has revised its energy strategy for 2050 to better align the plan, announced in 2017, with a mid-century goal of climate neutrality.
One of the main pillars of the revised strategy is hydrogen, a clean-burning fuel that can be used for power generation, transportation, industry, and heating. The UAE aims to produce 1.4 million tonnes of hydrogen annually by 2031 and expects the figure to increase tenfold to 15 million by 2050, an energy ministry official said on Tuesday.
Of the total 1.4 million tonnes, the UAE’s clean energy firm Masdar is expected to produce 1 million tonnes of green hydrogen by 2031 with the remaining 0.4 million tonnes blue hydrogen, produced using natural gas. Green hydrogen is produced using renewable energy, such as solar or wind, to split water into hydrogen and oxygen. Blue hydrogen is produced from natural gas, with carbon capture and storage (CCS) technology to reduce emissions.
Undersecretary for Energy and Petroleum Affairs Sharif Alolama told Reuters that green hydrogen should become progressively cheaper and the UAE should be a leading producer. “We have recognised that hydrogen will be a major part in the energy mix, may be not over the next three to five years but more within 10,” he said.
He added that policy frameworks, including the U.S. Inflation Reduction Act (IRA) and subsidies introduced in Europe and India, will reduce costs by encouraging production at scale. He also said that the UAE has a competitive advantage in producing green hydrogen due to its abundant solar resources and low-cost renewable energy projects.
Hydrogen oases: hubs for production and export
The UAE plans to establish two “hydrogen oases” or hubs for production and export of hydrogen by 2031, located in Ruwais and the Khalifa Industrial Zone Abu Dhabi (KIZAD). By 2050, there would be a total of five hubs, Alolama said.
The Ruwais hub will be developed by Abu Dhabi National Oil Company (ADNOC), which announced in June a partnership with Siemens Energy to build a green hydrogen plant powered by solar photovoltaic (PV) panels. The plant will initially produce about 200 tonnes of green hydrogen per day for ADNOC’s downstream operations.
The KIZAD hub will be developed by Masdar and Etihad Airways, which signed a memorandum of understanding in January to establish a green hydrogen ecosystem in Abu Dhabi. The hub will include a green hydrogen production facility powered by a four-gigawatt solar farm, as well as facilities for conversion into green ammonia for export.
The UAE also plans to leverage its existing infrastructure and expertise in natural gas and oil to produce blue hydrogen and transport it to international markets. Alolama said that the UAE has already started exporting blue ammonia to Japan as part of a pilot project.
Renewable energy: tripling capacity by 2030
Another pillar of the revised energy strategy is renewable energy, which the UAE aims to triple from 3.2 gigawatts (GW) now to 14 GW by 2030. This would increase the share of renewables in the total energy mix from 7% to 21%, according to Alolama.
The UAE has been investing heavily in renewable energy projects, both domestically and internationally. It is home to some of the world’s largest and cheapest solar plants, such as the Noor Abu Dhabi plant with a capacity of 1.2 GW and a tariff of $0.024 per kilowatt-hour (kWh), and the Al Dhafra plant with a capacity of 2 GW and a tariff of $0.0135 per kWh.
The UAE is also developing nuclear energy as part of its low-carbon portfolio. It has four nuclear reactors with a combined capacity of 5.6 GW under construction at the Barakah plant, which is expected to be fully operational by 2023.
Alolama said that increasing renewable energy capacity would reduce total energy generation costs by 100-150 billion dirhams ($27-41 billion) by 2030 as a result of lower fuel consumption and carbon emissions.
The UAE climate minister separately announced on Tuesday an updated national climate pledge under the Paris Agreement on climate change to cut emissions by 40% by 2030, raising its target from 31%.
The UAE’s revised energy strategy reflects its commitment to diversify its economy, reduce its dependence on fossil fuels, and enhance its role as a global leader in clean energy and climate action.
The Gulf state has revised its energy strategy to include ambitious targets for hydrogen production and renewable energy capacity
Image Credit: British Centres for Business
Hydrogen: a key part of the energy mix
The United Arab Emirates (UAE) is one of the world’s top oil exporters, but it is also preparing to host the UN’s climate conference COP28 from the end of November. As part of its efforts to showcase its climate credentials, the Gulf state has revised its energy strategy for 2050 to better align the plan, announced in 2017, with a mid-century goal of climate neutrality.
One of the main pillars of the revised strategy is hydrogen, a clean-burning fuel that can be used for power generation, transportation, industry, and heating. The UAE aims to produce 1.4 million tonnes of hydrogen annually by 2031 and expects the figure to increase tenfold to 15 million by 2050, an energy ministry official said on Tuesday.
Of the total 1.4 million tonnes, the UAE’s clean energy firm Masdar is expected to produce 1 million tonnes of green hydrogen by 2031 with the remaining 0.4 million tonnes blue hydrogen, produced using natural gas. Green hydrogen is produced using renewable energy, such as solar or wind, to split water into hydrogen and oxygen. Blue hydrogen is produced from natural gas, with carbon capture and storage (CCS) technology to reduce emissions.
Undersecretary for Energy and Petroleum Affairs Sharif Alolama told Reuters that green hydrogen should become progressively cheaper and the UAE should be a leading producer. “We have recognised that hydrogen will be a major part in the energy mix, may be not over the next three to five years but more within 10,” he said.
He added that policy frameworks, including the U.S. Inflation Reduction Act (IRA) and subsidies introduced in Europe and India, will reduce costs by encouraging production at scale. He also said that the UAE has a competitive advantage in producing green hydrogen due to its abundant solar resources and low-cost renewable energy projects.
Hydrogen oases: hubs for production and export
The UAE plans to establish two “hydrogen oases” or hubs for production and export of hydrogen by 2031, located in Ruwais and the Khalifa Industrial Zone Abu Dhabi (KIZAD). By 2050, there would be a total of five hubs, Alolama said.
The Ruwais hub will be developed by Abu Dhabi National Oil Company (ADNOC), which announced in June a partnership with Siemens Energy to build a green hydrogen plant powered by solar photovoltaic (PV) panels. The plant will initially produce about 200 tonnes of green hydrogen per day for ADNOC’s downstream operations.
The KIZAD hub will be developed by Masdar and Etihad Airways, which signed a memorandum of understanding in January to establish a green hydrogen ecosystem in Abu Dhabi. The hub will include a green hydrogen production facility powered by a four-gigawatt solar farm, as well as facilities for conversion into green ammonia for export.
The UAE also plans to leverage its existing infrastructure and expertise in natural gas and oil to produce blue hydrogen and transport it to international markets. Alolama said that the UAE has already started exporting blue ammonia to Japan as part of a pilot project.
Renewable energy: tripling capacity by 2030
Another pillar of the revised energy strategy is renewable energy, which the UAE aims to triple from 3.2 gigawatts (GW) now to 14 GW by 2030. This would increase the share of renewables in the total energy mix from 7% to 21%, according to Alolama.
The UAE has been investing heavily in renewable energy projects, both domestically and internationally. It is home to some of the world’s largest and cheapest solar plants, such as the Noor Abu Dhabi plant with a capacity of 1.2 GW and a tariff of $0.024 per kilowatt-hour (kWh), and the Al Dhafra plant with a capacity of 2 GW and a tariff of $0.0135 per kWh.
The UAE is also developing nuclear energy as part of its low-carbon portfolio. It has four nuclear reactors with a combined capacity of 5.6 GW under construction at the Barakah plant, which is expected to be fully operational by 2023.
Alolama said that increasing renewable energy capacity would reduce total energy generation costs by 100-150 billion dirhams ($27-41 billion) by 2030 as a result of lower fuel consumption and carbon emissions.
The UAE climate minister separately announced on Tuesday an updated national climate pledge under the Paris Agreement on climate change to cut emissions by 40% by 2030, raising its target from 31%.
The UAE’s revised energy strategy reflects its commitment to diversify its economy, reduce its dependence on fossil fuels, and enhance its role as a global leader in clean energy and climate action.
Mahnoor Jehangir is a passionate journalist with a Master's degree in English and Applied Linguistics. Prior to joining our newsroom, she honed her skills at a leading Pakistani television channel and partnered with a range of media organizations. In addition, Mahnoor taught English as a second language to middle school students at the Beaconhouse School System. Driven by her commitment to elevate underrepresented voices and unveil hidden stories, she works tirelessly to connect those in need with the broader global community. Mahnoor's storytelling style combines simplicity, clarity, and the inherent charm of the English language, captivating and enlightening her audience.
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