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					</table>The Gulf Cooperation Council (<a href="https://gcc-sg.org/ar/Pages/default.aspx" target="_blank" rel="noopener">GCC</a>) green hydrogen industry is poised for accelerated growth, fueled by improved economic activity. The latest <a href="https://www.worldbank.org/en/news/press-release/2024/12/01/non-oil-sectors-drive-robust-growth-in-gcc-countries" target="_blank" rel="noopener">World Bank GCC Economic Update</a> projects that the six-nation bloc&#8217;s economy will grow by 4.2% between 2025 and 2026, driven by ongoing economic diversification and strategic reforms.
GCC countries aim to utilize hydrogen extensively to decarbonize their hardest-to-abate sectors. An analysis by <a href="https://www.strategyand.pwc.com/m1/en/reports/2020/the-dawn-of-green-hydrogen/the-dawn-of-green-hydrogen.pdf" target="_blank" rel="noopener">Strategy&amp;</a> projects that the global demand for green hydrogen could reach 530 million tons by 2050, accounting for about 7% of primary energy consumption. The Middle East, Latin America, and Africa can play a leading role, with plans to produce over 4 million cumulative tons of electrolytic hydrogen by 2030.
Saudi Arabia and Oman are particularly well-positioned to harness their vast photovoltaic (PV) and wind energy potential, especially in coastal regions such as the Red Sea. Meanwhile, the UAE and Kuwait are leveraging their renewable energy resources to drive hydrogen production, aiming to establish themselves as major players in the global hydrogen market.
Saudi Arabia&#8217;s $8.4 billion Neom green hydrogen project can become the world&#8217;s largest utility-scale hydrogen facility <a href="https://www.mercomindia.com/green-hydrogen-production-facility-saudi-arabia-neom" target="_blank" rel="noopener">powered</a> entirely by renewable energy if it stays on schedule. The project is 60% complete and is expected to commence full operations by the end of 2026.
Industry analysts believe that the transition from ambitious plans to tangible results is already well underway. Saudi Arabia&#8217;s $8.4 billion <a href="https://www.mercomindia.com/green-hydrogen-production-facility-saudi-arabia-neom" target="_blank" rel="noopener">Neom green hydrogen project</a> is on track to be the world&#8217;s largest utility-scale hydrogen facility powered entirely by renewable energy. With 60% of the project already complete, it is slated for full operation by the end of 2026.
In addition, Saudi Arabia&#8217;s <a href="https://www.mercomindia.com/saudi-arabia-pfc-invest-softbank-solar" target="_blank" rel="noopener">Public Investment Fund (PIF)</a> has established a new entity, the Energy Solutions Company, which will focus on investing up to $10 billion in the production of green hydrogen.
Launched in May 2021, Dubai&#8217;s Electricity and Water Authority&#8217;s (DEWA) Green Hydrogen project has <a href="https://www.mercomindia.com/dubais-green-hydrogen-project-generates-over-1-gwh-energy" target="_blank" rel="noopener">produced</a> 90 tons of green hydrogen. This project can generate hydrogen at approximately 20 kg/h. It uses stored solar energy to produce electricity through a hydrogen gas motor at night, reducing approximately 450 tons of CO2 emissions.
According to the latest Hydrogen Council report, projects reaching the Final Investment Decision (FID) have surged tenfold recently. Today, more than $75 billion worth of hydrogen projects have achieved FID with minimal cancellations.
In recent years, the GCC hydrogen market has seen a surge in international players, accompanied by a rapid expansion in the number of projects. The GCC&#8217;s energy profile, utilizing wind at night and sun during the day, provides steady renewable energy inputs that are well-suited for electrolyzers producing hydrogen.
According to S&amp;P Global, the Arabian Gulf region can produce green hydrogen for as low as $1.50/kg by 2030, making the region a competitive global exporter.
&#8220;If we are to meet our carbon budgets and get to net zero by 2050, things need to accelerate. And there is no route to net zero without hydrogen,&#8221; says Eugene McKenna, senior vice president for hydrogen and sustainable technologies at Johnson Matthey (JM). &#8220;The hydrogen journey must pick up momentum, and we are seeing the groundwork being laid for that acceleration.&#8221;
However, unlocking the full potential of hydrogen requires regulatory alignment. Industry players have consistently called for clearer frameworks to incentivize production, facilitate infrastructure development, and promote international trade.
McKenna argues that the green hydrogen economy is not just about production, pointing out the need for a complete ecosystem to drive meaningful progress. To support this, infrastructure for transport, storage, and conversion will be a priority, especially given the GCC&#8217;s aspirations to lead the hydrogen export market.
Green hydrogen&#8217;s potential to replace fossil fuels in hard-to-abate sectors such as heavy industry, shipping, and aviation makes it critical for energy transition. Regional governments, international energy companies, and technology providers are forming partnerships to utilize this potential.
In November this year, Saudi Arabia announced it had joined the International Partnership for the Hydrogen and Fuel Cell Economy initiative to support international efforts to develop the hydrogen sector.
&#8220;The groundwork is ready. What comes next is acceleration, and we are finally set to see it happen with the right technologies, policies, and economic strategies,&#8221; says McKenna during a recent discussion with Mercom India at ADIPEC 2024.
Technology Driving Efficiency and Growth
Electrolyzers, which split water into hydrogen and oxygen, are central to green hydrogen production. Among the leading technologies are alkaline water electrolysis and the more recent proton exchange membrane (PEM) electrolysis, which offers greater flexibility to handle variable renewable energy inputs.
However, PEM&#8217;s widespread adoption faces challenges, specifically the cost and availability of iridium, a rare platinum group metal critical for PEM catalysts. Efforts to reduce costs include scaling electrolyzer production and improving efficiency through research and development. For example, increasing the durability of electrolyzers will help reduce operational costs, making green hydrogen more commercially viable.
Breakthroughs in solid oxide electrolyzers, which operate at higher temperatures and efficiencies, are emerging as a promising technology for industrial applications, complementing the capabilities of PEM systems.
However, green hydrogen remains the long-term goal. Achieving cost parity for this technology with conventional energy sources will require economies of scale and strong regulatory support.
Countries in the GCC are increasingly aligning regulations to encourage public-private partnerships, incentivize investment, and scale hydrogen production. Saudi Arabia&#8217;s Vision 2030 and the UAE&#8217;s Net Zero by 2050 strategy outline commitments to decarbonization and clean energy adoption.
Policymakers in these countries are also exploring measures to streamline permitting processes, reduce financial barriers, and foster cross-border trade in hydrogen.
Technological and Logistical Challenges
The global hydrogen industry continues to face a significant challenge in the fragmentation of the electrolyzer technology value chain. Electrolyzers are intricate systems made of multiple interdependent components sourced from different manufacturers. This fragmentation leads to a siloed approach where many players try to cover as much of the value chain as possible to gain a competitive edge. However, this strategy may have slowed the progress in advancing the technology.
Lately, there has been a growing realization that faster development can be achieved by collaborating with others and focusing on core strengths within the value chain. This focus on collaborative innovation is expected to drive both performance improvements and cost reductions.
Transporting hydrogen over long distances is a critical logistical challenge. However, converting the hydrogen into ammonia can make it easier to transport. This hydrogen can be reconverted from ammonia or be used directly in industrial applications.
Several companies are also pioneering methanol production by combining green hydrogen with captured carbon dioxide. This process can decarbonize sectors that are difficult to electrify, such as chemicals and fuels, and enable the production of synthetic materials with far lower carbon emissions.
GCC: The Next Green Hydrogen Powerhouse?
The future of green hydrogen in the GCC depends on harnessing the region&#8217;s renewable energy potential and fostering collaboration across all sectors.
However, challenges such as supply chain inefficiencies and scaling electrolyzer production must be overcome to unlock green hydrogen&#8217;s potential fully.
This market offers abundant opportunities for continued engagement between technology providers, manufacturers, and policymakers, alongside strong government support to drive the next wave of growth and innovation in this space.

Opportunities in Gulf Cooperation Council’s Green Hydrogen Ambitions

Here are some noteworthy cleantech announcements of the day from around the world:
The Solar Energy Corporation of India (SECI) has <a href="https://www.seci.co.in/whats-new-detail/2216" target="_blank" rel="noopener">signed</a> power sale agreements (PSA) to supply 5.28 GW of renewable energy until October 31, 2021, for the financial year (FY) 2021-22. The aggregate PSAs signed now stand at over 30 GW, i.e., a 95% year-over-year increase compared to FY 2021. According to SECI, these PSAs will enable the supply of up to 19 billion units of renewable power annually to eight states and union territories for 25 years.
India has invited the Gulf Cooperation Council (<a href="https://www.gcc-sg.org/en-us/Pages/default.aspx" target="_blank" rel="noopener">GCC</a>) member countries to invest in the sustainable energy sectors in the country. Addressing the representatives of the GCC countries at  EXPO2020 Dubai, Foreign Ministry Joint Secretary Vipul said India had increased foreign direct investment limits along with opening up of the sectors like defense, telecom, and insurance. India is expected to attract foreign investments of up to $120-160 billion annually, and Gulf countries were best placed to exploit this opportunity. He said India would be having 500 GW of renewable energy by 2030, and GCC nations can capitalize on investments in sustainability technologies like renewable and hydrogen energy, electric vehicles, and health technology.
Adani Green Energy (<a href="https://www.adanigreenenergy.com/" target="_blank" rel="noopener">AGEL</a>) and Adani Transmission (<a href="https://www.adanitransmission.com/" target="_blank" rel="noopener">ATL</a>) have declared their Energy Compact Goals as part of COP26, primarily adhering to Sustainable Development Goal 7 (SDG 7).  AGEL has set a target of achieving 45 GW renewable energy capacity by 2030, with the average tariff below the average power purchase cost. It will invest $20 billion in renewable energy development over the next decade and develop a 2 GW per year solar manufacturing capacity by FY 2022-23. ATL is on course to increase the share of renewable power procurement from 3% to 30% by FY 2023 and 70% by FY 2030 through its utility subsidiary in Mumbai.
Portugal-based electric utility company EDP <a href="https://www.edp.com/en/news/2021/11/09/edp-plans-invest-15-gw-renewable-hydrogen-2030" target="_blank" rel="noopener">plans</a> to produce 1.5 GW of electricity from renewable hydrogen by 2030. The goal was announced as part of the H2Zero commitment of the World Business Council for Sustainable Development (WBCSD) to accelerate the development of green hydrogen. The company said that these projects were aimed at regions with a favorable context for developing hydrogen projects, namely good solar and wind resources, support infrastructures, proximity to industrial clients, and a favorable regulatory environment. The company&#8217;s investment plan foresees converting old coal-fired thermoelectric plants into hydrogen centers and new production units. The newly announced ambition reinforces the goals of EDP&#8217;s strategic plan, which already envisaged investing in 250 MW of hydrogen electrolyzers capacity by 2025.
Union Minister for Petroleum and Natural Gas Shri Hardeep Singh Puri <a href="https://twitter.com/HardeepSPuri/status/1457965218177245192" target="_blank" rel="noopener">tweeted</a> that government-owned oil companies would set up 22,000 EV charging stations in India. Indian Oil Corporation Limited (IOCL) will set up 10,000 stations. IOCL has already installed 439 EV charging stations and plans to install 2000 charging stations in its retail outlet network over the next year. Another 1,000 EV charging stations will be set up by Bharat Petroleum Corporation Limited (BPCL) within the next year and 7,000 overall. BPCL has already set up 52 stations. Hindustan Petroleum Corporation Limited, which has installed 382 EV charging stations, will set up 1,000 stations in the next year and 5,000 overall.

Daily News Wrap-Up: SECI Signs PSAs for 5.28 GW of Renewables to Date in FY 2022

The Arab Petroleum Investment Corporation (<a href="https://www.apicorp.org/" target="_blank" rel="noopener noreferrer">APICORP</a>) announced that it would provide a $50 million credit facility to <a href="http://www.sirajpower.com/" target="_blank" rel="noopener noreferrer">SirajPower</a>, a UAE-based distributed solar developer, to expand its portfolio in the Middle East.
APICORP is a Saudi-based multilateral development financial institution. In its press statement, APICORP said that the transaction is the largest lease-funding for distributed solar energy in Gulf Cooperation Council (<a href="https://www.gcc-sg.org/en-us/Pages/default.aspx" target="_blank" rel="noopener noreferrer">GCC</a>). The company has also committed $450 million of capital towards renewable energy projects in the past four years, it added.
According to the press release, the funding would allow SirajPower to expand its turnkey rooftop solar solutions across different industries. This, in turn, would also help private sectors reduce their utility bills and carbon footprints significantly on a long-term basis, it added.
“The market is full of potential, and we are gearing up to the next phase of a promising and rapid development across the wider Middle East region. Our partnership with APICORP is a testament not only to the bank’s innovative approach to financing but also to their keen desire to play a key role in the region’s burgeoning green economy,” said Mohammed Abdulghaffar Hussain, Chairman of Siraj Power and Creek Capital.
According to APICORP, it has increased its investments in the renewable energy sector in the past few years. It added that the first investment came in 2017 as the company provided $110 million to Shuaa Energy II to build an 800 MW solar project at Mohammed bin Rashid Al Maktoum Solar Park in Dubai.
Recently, APICORP <a href="https://mercomindia.com/yellow-door-help-apicorp-install-solar-energy-efficient-technologies-saudi-arabia/" target="_blank" rel="noopener noreferrer">signed</a> two agreements with <a href="https://www.yellowdoorenergy.com/" target="_blank" rel="noopener noreferrer">Yellow Door Energy</a> to install a rooftop solar system at its headquarters in Dammam and retrofit the building with energy-efficient technologies. According to the company’s statement, the new fittings were likely to cut APICORP’s carbon emissions by 2,000 tons and generate up to 718 MWh of clean energy and reduce energy consumption by 35%.
Previously, Mercom<a href="https://mercomindia.com/apicorp-signs-75-million-term-facility-alfanar/" target="_blank" rel="noopener noreferrer">reported </a>that APICORP signed a strategic five-year Murabaha financing facility worth $75 million with Alfanar, a developer and engineering procurement construction company for clean energy and manufacturer of electrical products.
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This article has been edited to correctly reflect that APICORP is a Saudi-based financial institution

APICORP Commits $50 Million Credit Facility to UAE-Based Rooftop Solar Develop SirajPower

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