Al-Attiyah International Foundation for Energy and Sustainable Development confirmed that the oil-rich Arab Gulf countries have a favorable opportunity to invest in one of the promising renewable energy sources, which could reshape their economies and reduce carbon dioxide emissions in the coming years.
It is well known that the countries of the Middle East have abundant reserves of oil and gas, as the Gulf Cooperation Council countries specifically possess about 25 percent of the world’s oil reserves, and about 18 percent of the global reserves of natural gas.
However, the region’s leaders realize that oil and gas will not be the main drivers of their economies forever, and many of them are trying to diversify the sources of the economy and expand the base of non-oil sectors.
The report added that the State of Qatar recently announced a project to build the largest blue ammonia plant in the world, with a production capacity of about 1.2 million tons per year of blue ammonia, and production is scheduled to start in 2026.
The production of green hydrogen is one of the energy sources in which the countries of the Middle East region have begun to invest heavily. Green hydrogen is produced by electrolysis of water through the separation of hydrogen and oxygen, relying on renewable energy sources.
Hydrogen is used in a wide range of applications, including power generation and storage, and transportation. It can also be used to produce jet fuel. Most importantly, hydrogen provides an important way to reduce carbon emissions in heavy industries such as steel, cement, and fertilizers.
It should be noted that blue ammonia is made from natural gas, but the carbon dioxide from the production process is captured and stored. Blue ammonia can be used as a low-carbon fuel in a wide range of industrial applications, including transportation, power generation, and heavy industries such as cement and fertilizer production. Blue ammonia is also a preferred method for transporting hydrogen over long distances.
Accordingly, the Arab Gulf countries are qualified to become a major producer and exporter of hydrogen due to their huge resources in the field of renewable energy for the production of green hydrogen, and they also enjoy a privileged geographical location near major demand centers such as the European Union and Asia, in addition to having huge financial potential to invest in Green hydrogen production projects.
On the other hand, most government revenues in the Arab Gulf countries still come from fossil fuel exports, so the establishment of green hydrogen projects will reduce dependence on oil exports, in addition to achieving an environmental benefit represented in reducing carbon emissions. Despite this, hydrogen production projects are currently subject to great economic challenges and risks, and this must be taken into consideration when making investment decisions in hydrogen projects.
