GREEN HYDROGEN OUTLOOK IN THE MIDDLE EAST

Green hydrogen is rapidly emerging as a key technology in the global energy transition, and the Middle East is poised to play a leading role in its production and export The region's abundance of renewable energy resources, particularly solar and wind, coupled with its strategic location between Europe and Asia, makes it an attractive destination for green hydrogen investments

The Middle East has traditionally been known for its vast reserves of fossil fuels, but the region is now shifting towards renewable energy The Middle East Solar Industry Association (MESIA) indicates that there are over 100 GW of renewable energy projects either under construction or in the pipeline in the region This presents a unique opportunity for green hydrogen production, as it requires large amounts of renewable electricity to be generated through electrolysis of water.

The market outlook for green hydrogen in the Middle East is promising, with several factors driving its growth Firstly, the region's proximity to key markets in Europe and Asia makes it a potential exporter of green hydrogen Secondly, the abundance of low-cost renewable energy resources in the region can provide a competitive advantage in the production of green hydrogen Finally, the growing demand for clean energy globally and the increasing adoption of hydrogen as a key enabler of the energy transition are expected to drive the growth of the green hydrogen market in the Middle East

For these reasons several countries in the Middle East and North Africa regions have already announced ambitious plans to develop green hydrogen projects One country that will play a key role in the next years is Egypt, where AMEA Power is one of the strongest renewable energy players AMEA Power and several other developers have concluded a Framework Agreement with the Egyptian authorities to allow the development of green hydrogen projects in the country AMEA Power will leverage its vast and unique experience in the country, thanks to our two flag-ship projects which are under construction, Abydos 500 MW solar power plant and Amunet 500 MW wind farm which makes us the only developer with in-country experience with both technologies, allowing us to have a very valuable knowledge of the hydrogen key driver. Other countries in the region also have a very bright future in the green hydrogen space Oman, has already signed six commercially binding agreements for green hydrogen projects worth 20bn USD, and Saudi Arabia, where the NEOM project is under construction has issued the first industrial operating license for NEOM Green Hydrogen Company

However, there are also several challenges that need to be addressed for the green hydrogen market to reach its full potential in the region. One major challenge is the high capital cost of green hydrogen production and the need for significant investments in renewable energy infrastructure Another challenge is the lack of a regulatory framework for the production, transport, and trade of green hydrogen This will require close collaboration between governments, regulators, and private sector stakeholders to develop policies and regulations that support the growth of the green hydrogen market in the region.

In conclusion, the Middle East has the potential to become a major player in the global green hydrogen market The region's abundant renewable energy resources, strategic location, and growing demand for clean energy make it an attractive destination for green hydrogen investments However, realising this potential will require significant investments, policy support, and regulatory frameworks to overcome the challenges associated with the production and trade of green hydrogen

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