The UAE aims to acquire 25 percent of the low-carbon hydrogen market, which is expected to reach more than US$400 billion.
The green hydrogen project implemented by Dubai Electricity and Water Authority (DEWA) in cooperation with Expo 2020 Dubai and Siemens Energy at the Mohammed bin Rashid Al Maktoum Solar Park, is a key project in supporting the UAE’s efforts to achieve global competitiveness in the green hydrogen market. Implementing the project, which is the first of its kind in the Middle East and North Africa to produce hydrogen using solar energy, the Solar Park contributes to achieving competitive prices in producing green hydrogen.
The production of green hydrogen is mainly carried out through electrolysis using renewable energy sources. DEWA received the lowest solar energy prices (Levelised Cost of Energy) globally five consecutive times, making Dubai a global benchmark for solar power prices. Additionally, Dubai provides clear and stimulating regulatory and legislative frameworks, which encourage the private sector and global investors and developers to participate in clean and renewable energy projects, using the Independent Power Producer (IPP) model. DEWA has attracted investments of around AED40 billion through this model, which encourages value-added partnerships between the public and private sectors.
Saeed Mohammed Al Tayer, MD and CEO of DEWA, said that green hydrogen is one of the environmentally friendly energy sources. It represents one of the pillars of a sustainable future that depends on accelerating the transition to carbon neutrality. This initiative is aligned to the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050, which aims to provide 100 percent of Dubai’s total power capacity from clean energy sources by 2050.
Waleed bin Salman, Executive Vice President of Business Development and Excellence at DEWA, noted that DEWA had invited globally reputed consulting companies to submit their offers to develop an ambitious strategy for green hydrogen production. The objectives are to develop the green mobility sector, reduce carbon emissions from various industries, and generate electrical and thermal energy, producing water and other applications.
The Green Hydrogen project at Mohammed bin Rashid Al Maktoum Solar Park supports UAE’s competitiveness in green hydrogen markets. Innovative technologies to produce green hydrogen using clean and renewable energy are witnessing rapid developments and steady progress, and studies indicate that green hydrogen production will increase by 57 percent annually to reach 5.7 million tonnes in 2030.