Key Takeaways
- The United Arab Emirates (UAE) is positioning itself as a leader in renewable energy and green hydrogen.
- The World Future Energy Summit will highlight the key role of green hydrogen in industrial decarbonisation and provide a platform for collaborative solutions between the UAE and the UK.
- The UK aims to expand low-carbon hydrogen production to 10 GW by 2030 and is looking to the UAE for strategic partnerships and cross-border investments.
- The green hydrogen market has entered a phase of market realism, requiring scale, capital strength, technical expertise, and long-term commitment to succeed.
- A clear and stable regulatory framework is necessary for international partners to invest confidently in the UK’s green hydrogen market.
Introduction to Green Hydrogen
The United Arab Emirates (UAE) has long been a leader in renewable energy, and its experience in this field is now being leveraged to drive the growth of the green hydrogen industry. The World Future Energy Summit, held in Abu Dhabi from 13 to 15 January, will provide a platform for industry leaders, policymakers, and investors from the UAE and the UK to explore collaborative solutions for the development of green hydrogen. This comes at a time when the UK is pushing to expand its low-carbon hydrogen production to 10 GW by 2030, and the UAE is well-positioned to play a key role in this effort.
The UK’s Ambitions for Green Hydrogen
The UK’s ambition to expand its low-carbon hydrogen production is driven by its commitment to achieving net zero emissions by 2050. The government has already implemented concrete projects to boost the hydrogen economy, and industry leaders are confident that hydrogen will be at the heart of the UK’s plans to boost the economy and achieve its emissions targets. The UAE, with its experience in renewable energy and large-scale carbon capture, utilisation, and storage (CCUS) projects, is seen as a natural partner for the UK in this endeavor.
The Importance of Regulatory Framework
For the UK to successfully develop its green hydrogen market, a clear and stable regulatory framework is necessary. This will give international partners, such as the UAE, the confidence to invest capital on a large scale and for decades to come. The UK government has already invested £500 million in public funds to develop hydrogen infrastructure, signaling its long-term commitment to building this nascent industry. However, more needs to be done to create a favorable investment climate, and the World Future Energy Summit will provide a platform for discussion on this issue.
Collaboration Between the UAE and the UK
The UAE and the UK have a long-standing strategic relationship that extends beyond energy, but hydrogen is now a natural extension of this partnership. The two countries share overlapping interests, ambitions, and areas of expertise, making them ideal partners for collaboration on green hydrogen. The World Future Energy Summit will explore the growing links between the two nations and their respective regional markets, in the context of a global transition to cleaner energy sources that drive faster industrial decarbonisation.
Investment Opportunities
The development of green hydrogen in the UK will require massive and sustained funding, with the UK Government’s own projections suggesting that an additional £9 billion of private sector funding will be needed to maintain its ambitions for 2030. The UAE is poised to play a significant role in this effort, with private and public investment sources in the UAE looking to invest in the UK’s green hydrogen market. The World Future Energy Summit will provide a platform for investors to explore viable, risk-free projects and for the UK government to signal its commitment to creating a favorable investment climate.
The Future of Green Hydrogen
The green hydrogen market has entered a phase of market realism, where scale, capital strength, technical expertise, and long-term commitment will determine who will succeed. The UAE is well-positioned to drive the growth of this industry, with its experience in renewable energy and large-scale CCUS projects. The World Future Energy Summit will feature the Green Hydrogen Innovation Hub, a dedicated zone showcasing more than 20 start-ups whose innovations can pave the way for even faster global integration and scaling. With sufficient planning and close cooperation, the UAE and the UK can make the most of their respective resources, expertise, and investment links, ensuring that both nations enjoy the benefits of early adoption of green hydrogen.
Conclusion
The World Future Energy Summit will provide a platform for industry leaders, policymakers, and investors to explore collaborative solutions for the development of green hydrogen. The UAE and the UK are well-positioned to play a significant role in this effort, with their overlapping interests, ambitions, and areas of expertise making them ideal partners for collaboration. With a clear and stable regulatory framework, sufficient funding, and a commitment to innovation, the green hydrogen market is poised for significant growth, and the UAE and the UK are at the forefront of this effort.