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rTheAl-AttiyahFoundationOURMEMBERS01The

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by:ResearchSeries2023MayINTRODUCTION02SUSTAINABILITYRESEARCHPAPERGreenhydrogencanhelpdecarbonisehard-to-abatesectorslikerefinery,

steelandheavydutytransportandthechemicalindustry.TheGulfregioniswellpositionedtoestablishitselfasahydrogenhubasithascheapandabundantrenewableenergyresourcesandislocatedinthevicinityofmajorhydrogenconsumptioncentreslikeEuropeandAsia.Whatrisksdoesamassiveuptakeofgreenhydrogenposetotheregion?Whatisgreenhydrogenandwhatisitscurrentandfuturecontributiontoasustainableglobaldevelopment?WhichhydrogenpolicyframeworksarecurrentlyexistingintheGulfregion?Thisresearchpaperispartofa12-monthseriespublishedbytheAl-AttiyahFoundationeveryyear.

Eachin-depthresearchpaperfocusesonacurrentsustainabilitytopicthatisofinteresttotheFoundation’smembersandpartners.The12technicalpapersaredistributedtomembers,partners,anduniversities,aswellasmadeavailableontheFoundation’swebsite.ResearchSeries2023May03

EXECUTIVESUMMARY•

Greenhydrogencanhelpdecarbonisehard-to-abatesectorslikerefinery,steelandheavydutytransportandthechemicalindustry.o

Thedomesticproductionofcheap,greenhydrogenmightattractenergyintensiveindustriesfromotherregionswhichcancontributetothediversificationofacountry’seconomy.•

Today’shydrogendemandisforecastedtogrowfive-folduntil2050whichopenssignificanteconomicopportunitiesforrenewableenergyrichregionsliketheGulfcountries.•

Morestringentglobalclimatecommitmentsmightheavilyreducetheregion’srevenuesresultingfromfossil-fuelexportswithrelatedimpactstocountries’economies.•

Regardingthedifferenthydrogenproductiontechnologies,theGulfcountrieshavevaryingapproaches.Omanfocusesonproducinggreenhydrogen,Qatarisoptingforbluehydrogen,andtheUAEandSaudiArabiaplantostrikeabalancebetweenbothoptions.•

TheGulfregioniswellpositionedtoestablishitselfasahydrogenhubduetovariousreasons:o

Ithascheapandabundantrenewableenergyresources.o

ItisgeographicallywelllocatedinthevicinityofmajorhydrogenconsumptioncentreslikeEuropeandAsia.•

Aglobaluptakeofhydrogendemandisadouble-edgedswordfortheGulfcountries.Itcanbeseenasasignificanteconomicrisktotheregionduetodecliningdemandforfossilfuels,butitalsobringsimmenseopportunitiesforsustainableeconomicdiversificationandpositioningtheregionasaworldleaderforproducingandexportinggreenhydrogen.o

Ithastheexperienceandinfrastructureaswellasthefinancialmeanstodeveloplarge-saleenergyprojects.ResearchSeries2023MayBACKGROUND04Climatechangeisoneofthemostsignificantchallengesofourtime.Theworldisfacingunprecedentedchangesinclimatepatterns,withpotentiallydevastatingeffectsonnaturalecosystems,humanlivelihoods,andglobaleconomicgrowth.Theurgencytoreducecarbonemissionsandtransitiontowardssustainableenergysourceshasbecomeatoppriorityformanycountriesandregionsworldwide(UNFCCC2023).Inthiscontext,greenhydrogenhasemergedasapromisingsolutionfordecarbonisation,especiallyinthehardtoabatesectorslikeheavyindustryandheavy-dutytransportaswellasaviationandmaritimetransport(IEA2022).Gulfstateshaverecognisedtheimportanceofdiversifyingtheireconomies;andmanycountrieshaveannouncedsignificantinvestmentsinrenewableenergiesandPtXtechnologies.EspeciallytheUAE,SaudiArabiaandOmanhavepublishedambitiousroadmapstosupplyAsiaandEuropeaswellastheirdomesticeconomieswithgreen(andblue)hydrogen.Hence,greenhydrogencouldprovideasignificantboosttotheregion’seconomicgrowthbycreatingnewsustainableindustries,jobs,andexportopportunities(Koch2022).Thisreportelaboratesonthequestion“whichopportunitiesandrisksarisefortheGulfregionfromagloballyemerginggreenhydrogen/PtXmarket?”.TheGulfCooperationCouncil(GCC),consistingofBahrain,Kuwait,Oman,Qatar,

SaudiArabia,andtheUnitedArabEmirates(UAE),isoneoftheworld’slargestandmostestablishedenergyexporters,withabout1/3oftheworld’soiland1/5oftheworld`snaturalgasreserves(SWP2022).Theemerginggreenhydrogenmarketpresentssignificantopportunities,butalsorisks,fortheGulfregion.Ontheonehand,theregionhasabundantrenewableenergyresources,includingsolarandwindpower,

thatcouldbeharnessedtoproducegreenhydrogen–pavingthewayforlargescaleexportsofgreenhydrogenanditsderivatives.Moreover,itsvicinitytomajorhydrogenconsumptioncentreslikeEuropeandAsiaaswellasitsestablishedenergytransportinfrastructuremakestheregionaperfectcandidatetobecomeamajorhubforPower-to-X(PtX)export.However,

theregionalsofacestheriskofoilandgasdemanddecliningbyalarge-scaleramp-upofthehydrogenmarketswhichcouldheavilyaffectitseconomy(Michaelowa&Butzengeiger2019).ResearchSeries2023May05

HYDROGENPRODUCTIONANDDEMANDGlobalhydrogenproductionreached94milliontonnesin2021

andwasmainlyusedasafeedstockintherefiningandchemicalindustry.Approximately82%ofthisproductionwasmetbyunabatedfossilfuel-basedproductiontechnologiesandapproximately18%asaby-productfromchemicaloperations–intotalemitting900MtofCO2.Thisequalsapproximately2.5%ofglobalGHG-emissions.Thetwomostmaturetechnologiesforlow-carbonhydrogenproductionarebluehydrogen(fossil-fuelbasedhydrogencombinedwithCarbonCaptureandStoragetechnologies)andgreenhydrogen(hydrogenproducedviaelectrolysispoweredbyrenewableelectricity).Today,

low-emissionhydrogenrepresentslessthan1%ofglobalproduction(IEA2022).areachieved.Withinthiscontext,thisconceptiscalledadditionality(IEA2022)andisakeycriterionforconsideringtheproducedhydrogenas“green”–e.g.,inthecontextofEUclimatepolicylegislation.Figure1:SchematicofPEMelectrolyzercellToday’shydrogenproductionisexpectedtogrow5-folduntil2050.Maindemanddriversaredemandfromtransport-mainlyheavy-dutytransportaswellasairandmaritimetransport-steelproduction,electricitystorage/generationandtoasmalleramountthebuildingsector.

However,

demandintheseapplicationswaslimitedtoaround40ktH2in2021

(IEA2022).Itisimportanttomentionthatgreenhydrogenproductionishighlyenergyintensive,andlessefficientthandirectelectrificationwithrenewableenergies(e.g.,inthehouseholdsector).Therefore,policymakersshouldaimtoprioritisehydrogenuseinthosesectorswherethehighestandmosteconomicallyeffectiveCO2-mitigationscanbeachieved(IRENA2022A).Greenhydrogenreferstohydrogenwhichisproducedviaelectrolysispoweredbyexclusivelyrenewableenergies(RE).ThisrenewableenergysourceshouldbenewlybuiltinordertoguaranteethatcurrentresourcesarenotdivertedfromtheexistingenergygridandthusensurethatactualemissionmitigationsResearchSeries2023May06Anelectrolyserisanelectro-chemicaldevicewhichsplitswaterinacatalyticreactionbytheapplicationofaconstantcurrent.Anelectrolyzercellconsistsoftwoelectrodes(anode,cathode)andanelectrolyte(SeeFigure1).Whenwaterissplit,theoxygenisattractedtothecathode,whilethehydrogenisattractedtotheanode.Thereareseveraldifferenthydrogentechnologiesonthemarket.Themostmatureandwidelyusedonesarethealkalineandtheproton-exchange-membraneelectrolyserwhichbothhaveanefficiencyofapproximately60-70%meaningthat50kWhofelectricityisneededtoproduce1kgofhydrogen.(Abad&Dodds2020)Sincethegaseoushydrogenreleasedfromelectrolysishasaverylowenergydensitywhichmakesithighlyinefficientandcostlytobetransported,ithastobeprocessedtoabettertransportableform.Thetwomostpromisingwaystotransporthydrogenoverlongdistancesiseitherincompressedformviapipelines(wheregeographicalconditionsarebeneficial)orthesynthesisofhydrogenwithnitrogenfromambientairtoammoniaviatheso-calledHaber-Boschprocessanditstransportationviaships.Bothalternativescanaddsignificantcostsandenergyrequirementstothehydrogensupplychainandshouldbeconsideredcautiously(IRENA2022B).ResearchSeries2023May07

CURRENTENERGYANDTHEENERGYEXPORTMATRIXThecombinedprovenoilreservesoftheGCCcountriesrepresentabout30%oftheworld'stotaloilreserves.TheGCCcountriesarealsohometosignificantresourcesofnaturalgas,withatotalprovenreserveofca.40trillioncubicmetersasoftheendof2019

whichaccountforabout13%ofglobalexports(IRENA2019).

TheenergysectorisamajorcontributortotheGDPoftheGCCcountries.Oilandgasexportsin2019

accountedforapproximately42%ofKuwait’s,24%ofSaudiArabia’s,25%ofOman’s,17%ofQatar’sand16%oftheUAE’sGDP,

showingthestrongdependencyofthesecountriesonfossilfuelexports.TheonlyexceptionsareBahrainandOmanwhereitaccountedforalowershare(Al-Sarihi&Mansouri2022).Thelargestshare(approximately70%)

oftheGCC`sprimaryenergyresourcesareexportedtotheAsianmarket(primarilyChina,India,andJapan).Therelevanceofthesecountriesascustomershasbeengrowingoverrecentyears(IRENA2019).TheGulfcountries’geographiclocationinthesunbeltoffersremarkablepotentialforrenewableenergyproductionlikesolarandwindenergy.

DespitetheabundantrenewableresourcesavailableintheGulfstates,theprimaryenergyneedsoftheGCCcountriesarestillmet99%byhydrocarbons.Recognisingtheshiftingenergylandscape,theGCCcountrieshavegraduallyincreasedtheirinvestmentsinrenewableenergies.Thetotalinstalledcapacityofrenewableenergieshasrisenfrom17MWin2

011

to3,271

MWin2020.However,

thecurrentcontributionofrenewablestotheregion'stotalprimaryenergyconsumptionremainsbelow1%.Nonetheless,theGulfcountrieshavesetambitioustargetsforrenewableenergydeployment,withagoalofreachingatotalinstalledcapacityofatleast80GWby2030(Al-Sarihi&Mansouri2022).ResearchSeries2023MayTHECHALLENGEOFTHEGROWINGPUSHFORGLOBALENERGYTRANSITION08risingsealevels.Theregion’sextremeheatisAsmentionedabove,theGulfcountriesareeconomicallyhighlydependentonoilandgasexports.Thosesubstantialcashflowswhicharepartlydistributedtoresidentsthroughincometransfers,public-sectoremployment,andpublicservices,areanimportantpillarofcurrentgovernmentsintheregion.However,transitioningfrompetroleumtootherexpectedtoworsen,leadingtomorefrequentandintenseheatwaveswithimplicationsforpublichealth,infrastructure,andenergydemands.Additionally,changingweatherpatternswillexacerbateexistingwaterscarcitychallenges(UNFCCC2023).Forthosereasonsatransitionawayfromfossil-fuelswhilestillmaintainingtheirpositionasmajorenergyexportersisobligatoryfortheGulfcountries.Hydrogenisconsideredkeytoenableasmoothtransitionawayfromtheircarbonintensivepracticestoamoresustainableanddiversifiedeconomy.Withtheirabundantrenewableenergyresources,theirexpertiseintheenergysector,

thegeographicvicinitytomajorimportcentresandtheirmassiveinvestmentresources,Gulfcountriescanestablishthemselvesasahydrogenexporthub(Öko-Institut2022).industriesandadoptingatax-basedfiscalsystemwoulddisruptthismodel,jeopardisingthegovernments’accesstocashflowsandthuscreatingastronginertia(Ansasri2022).ClimateandsustainabledevelopmentgoalsoftheGulfcountriesthemselvesbutalsoofmajorimportingcentresmakeaphase-outoffossilfuelsinevitableincomingdecades.Thisongoingtransitionposesmajorriskstotheeconomicandpoliticalstabilityintheregion.Furthermore,thecountriesfacesignificantrisksfromclimatechange,includingcoastalerosion,flooding,andsaltwaterintrusionduetoResearchSeries2023May09

HYDROGENPRODUCTIONPOTENTIALOFGULFCOUNTRIESAsalreadynoted,theGulfregionboastsimpressiverenewableenergyresourcesandranksamongthecheapesthydrogenproductionlocationsintheworld;withexpectedhydrogenproductionpricesof<1.50$/kgH2in2050(IEA2021).

Figure2showsarenewableenergysuitabilityanalysisthatcombinesrenewableenergyresourceswithvariousfactorssuchaspopulationdensity,

topography,landcover,

andprotectedareas.IntermsofsolarPVtechnology,theanalysisrevealssubstantialpotentialfordeploymentacrossallGCCcountries,whereutilisingjust1%ofthesuitableareacouldyieldaremarkable608GWofsolarPVcapacity.Similarly,thewindanalysisindicatesthatharnessingjust1%ofthesuitableareaforwindpowercouldtranslatetoanimpressivecapacityequivalentto26GW(IRENA2019).speedandsolarirradiationdata.Ascanbeseen,especiallySaudiArabiaandOmanandtolesserextendQatar,

KuwaitandUAEhaveasignificantpotentialtoproducegreenhydrogen.Otheraspectslikewateravailability,distancetoinfrastructure,orproximitytocitiesorthecoastarenotconsideredinthiscontext.Ifonewouldtakethoseaspectsintoaccount,theproductionpotentialwouldbereducedbymorethanoneorderofmagnitudeascanbeseeninFigure4(Öko-Institut2022).However,

waterstressincertainregionsisnotnecessarilyanexclusioncriterionforhydrogenproduction,sincewaterdesalinationplantscanproducefreshwaternearcoastlinesandentailonlymarginalcostsofapproximately1%oftheoverallhydrogenproductioncosts,althoughinitialinvestmentcostsaresignificant(Ansasri2022).ThisisspecificallyrelevantfortheGulfregion,whichmightturnouttobeacompetitiveadvantagecomparedtopoorercountrieswithlessfinancialresourcestoinvestinrenewableenergy-drivenwaterdesalinationfacilities.Figure3showstheannualtechnicalproductionpotentialforgreenhydrogenintheGulfregion.ThisdataisexclusivelybasedonwindFigure2:Suitabilityanalysisresultsforon-gridsolarPV(left)andon-gridwind(right)ResearchSeries2023May10Figure3:

TheoreticalgreenhydrogenproductionpotentialFigure4:

AnnualproductionpotentialforgreenhydrogenconsideringadditionalrestrainingfactorsRegardingproductionpricesanexemplarycalculationforhydrogenproduction,conversion(toAmmonia,liquidhydrogen,sustainableaviationfuel(SAF))andtransportfromtheUAEtoGermanywasconductedandcanbeseeninFigure5.Productioncostsareapproximately103€/MWhH2.DependingonthespecificPtXproductsignificantcostsforconversionandtransportbetween38and68€/MWhareaddedtotheproductioncosts.Thepricesshownhereareaveragelevelizedcostofhydrogen(LCoH)between2023and2050.ResearchSeries2023May11Figure5:CostbreakdownofPtXproductionandtransportcostsfromUAEtoGermanyTable

1:CarbonintensityofdifferenthydrogenproductiontechnologiesEventhoughthisstudyinvestigatestheopportunitiesofgreenhydrogenfortheGulfregion,bluehydrogenmustbeconsideredasanalternative,especiallyregardingtherichnaturalgasreservesintheregion.Bluehydrogenis–likegreyhydrogen–producedbythesteammethanereformationprocess,splittingnaturalgas(CH4)inH2andCO2.Tomakegreyhydrogen“blue”,partoftheCO2iscapturedandstoredorutilised.ThecapturerateandshareofpermanentlystoredCO2arethekeydriversofCO2-intensityof‘blue’hydrogen.Inaddition,theemissionintensitydependssignificantlyonthesystemboundarychosen.Especiallyupstream(extraction,processing,andtransportofnaturalgas)anddownstreamemissions(transportemissions)canhaveasignificanteffectontheoverallembodiedemissions.Upstreamemissionsfromgreyandbluehydrogencanleadtoembodiedemissionsofupto5.2kgCO2/kgH2.Table1shows,bluehydrogenproductioncanhavesimilarlyhighembodiedemissionsasgreyhydrogenwhichmakestheecologicalbenefitquestionable.Especiallynaturalgasexportingcountrieslikei.e.,Qatarhaveahighinterestindevelopingbluehydrogentechnologies.IfbluehydrogenwillbeatruealternativeorjustasunkeninvestmentfortheGulfcountries,willheavilydependonthepoliticalwillofboththeexportingandimportingcountriesaswellastherawmaterialandtechnologypricesnecessaryfordifferenthydrogenproductiontechnologies.Figure6showsacomparisonofgreenvsbluehydrogenpricesdependingonnaturalgasprices.ResearchSeries2023May12Figure6:LCoHofbluehydrogenatvariousgaspricesvsgreenhydrogenResearchSeries2023May13

DOMESTICUTILISATIONANDEXPORTPOTENTIALFORGREENHYDROGENCountriesproducinggreenhydrogencaneitheruseitdomesticallyorexportit.Ifuseddomestically,greenhydrogencanbeusedtodecarbonisetheindustryandtransportsector,

andsupportgridstabilityinscenariosofaveryhighrenewableenergyshare.Theindustrysector,

thechemicalsector,

fertiliserproductionandtheheavyindustry(e.g.,steelproduction)areprimecandidates.Hydrogencanalsobeusedtodecarbonisethetransportsector;thisapplicationthoughshouldbelimitedtoheavy-dutyandlong-distancevehicles(IEA2022).Usinggreenhydrogeninsteadofoilandgasdomestically,nomatterinwhichsector,

willalsohelpGulfstatestoachievetheircommitmentsundertheParisAgreement.SeveralGulfstateshavepledgednet-zerotargetsintheirNationallyDeterminedContributions(NDCs):forexample,SaudiArabia&Bahrainby2060,theUAEandOmanwanttobecarbonneutralby2050,Qatar25%andKuwait7.4%reductionby2035(Khan,&Al-Ghamdi2023).Themostimportantquestionsregardingfuturehydrogentradeare:•

Whatquantitiesofhydrogenwillbedemanded?•

Whatwillbethemaindemandcentres(markets)?•

Whattypeofhydrogenwillbedemanded?IRENAexpects5000TWh/yearofhydrogenandhydrogenderivativestobetradedby2050.Figure7showsexpectedtradevolumesglobally(IRENA2022C).RecentreportsbyIRENA,theHydrogenCouncilandDNVsuggestthattheEU,Japan,andSouthKoreawillbecomekeyimportersofhydrogen,whereasAustralia,theMiddleEast,NorthAfrica,andSouth/CentralAmericaarecommonlyseenasmajorpotentialexporters–withvaryingmarketpositionsduetotransportdistances.China,India,andtheUSareexpectedtojointheclubofdemandcentres,buttheyhavethepotentialtobecomeself-sustainingorevenexportersdependingontheirpoliticalchoices(DNV2022;IRENA2022C;HydrogenCouncil,2022).PotentialdomesticapplicationsintheGulfregionwillmostprobablyfocusmainlyonoilrefineries,fertiliserproduction,steelindustryandthetransportsector.

Especiallyforthesteelandchemicalsectoritispossiblethatduetothehighhydrogentransportcosts,inthelongterm,industriescurrentlylocatedinregionswithlowerrenewableenergypotentialswillrelocatetheiroperationstocertainGulfcountriesandrathertransporttheendproducttodemandcentresinsteadofimportinggreenhydrogenathighprices(IRENA2022C).Thiscouldopensubstantialneweconomicopportunitiesfortheregardedcountries.Duetotheaforementionedreasons,Gulfcountrieshavethepotentialtoestablishthemselvesasworldleadingexportersofgreenhydrogen.ResearchSeries2023May14Figure7:Globalexpectedhydrogentrademapin2050Notallcountries/regionswillbecomesimilarlyactive.Investmentcapabilitiesandpoliticalpreferencesplayanimportantrole.Gulfcountrieshavetheabilitytoinvestbothinhydrogeninfrastructure-andbenefitfromexistingenergyinfrastructuresandlongexperienceasenergyexporters-,whereasfinancialcapacitiesincentral/southAmericaarelimited,andevenmoresothoseinmanyAfricancountries(IRENA2022A).TherecentlyagreedRenewableEnergyDirective(REDII)definesrenewablehydrogenas:i)Itderivesitsenergycontentfromrenewablesourcesotherthanbiomass;andii)achievesa70%

GHGemissionreductioncomparedtofossilfuels.Low-carbonhydrogenisdefinedashydrogenwithanenergycontentthatisderivedfromnon-renewablesources,andthatmeetsaGHGemissionreductionthresholdof70%comparedtofossil-basedhydrogen.Thiscanbetranslatedtoanemissionintensitythresholdofapproximately3.4kgCO2/kgH2(EUCommission2022).Fromatechnicalpointofview,

itwillbeverychallengingtoreachthisthresholdwithbluehydrogen.Withthisregulationinplace,theEuropeanmarketisexpectedtobecomethekeydemandcentreforgreenhydrogeninthenextyears.Thequestion“Whattypeofhydrogenwillbedemanded?”iscrucialfortheinvestmentstrategyof(future)hydrogenproducers.

Greyandbluehydrogenfollowadifferentproductiontypethangreenhydrogenand,hence,agoodunderstandingoffuturedemandpatternsisdecisiveforasuccessfulinvestmentstrategy.Theemissionintensityofhydrogenisexpectedtobecomeakeyparameterforbuyersandwillthereforeaffectachievableprices.

TheEUforexamplealreadyimplementsstrictregulationsonthecarbonintensityofhydrogen.TheUSseemmoreagnostictodifferenthydrogentypes,butitsrecentlyintroducedtaxincentivesgiveaclearprioritytogreenResearchSeries2023May15hydrogen:theInflationReductionAct(IRA)givestaxincentivesforlow-carbonhydrogenproductionbetween0.60USD/kgH2toupto3USD/kgH2.Thelowerthecarbonintensity,thehigherthetaxcredit(BlueGreenAlliance2022).Japanisanotherexistingkeydemandcentre.Asoftoday,

Japanisopentobothblueandgreenhydrogen,butonecanexpectthatinthemid-tolong-run,Japanwillfocusongreenhydrogenaswell,inordertomeetitsnet-zerotargetfor2050(MinistryofEconomyJapan2017).DIFFERINGFRAMEWORKOFGULFCOUNTRIESREGARDINGHYDROGENWhenitcomestothehydrogencolourspectrum,theGulfstateshavedifferentapproaches.Omanisprimarilyfocusedonproducinggreenhydrogen,Qatarisoptingforbluehydrogen,whiletheUAEandSaudiArabiaareplanningtostrikeabalancebetweenbothoptions.Overall,inviewofmoreambitiousnationalclimatepoliciesandinternationalclimatecommitments,onecanexpectthatsomecountries/regionswillacceptbluehydrogeninatransitionalphasebutwillswitchtogreenhydrogenwithclearlydefinedemissionthresholds(suchasthe3.4kgCO2/kgH2alreadydefinedbytheEU)inthemid-tolong-term.Insummary,

bluehydrogenmayserveasaninterimsolutionduetothecurrentlylowerproductioncostscomparedtogreenhydrogeninmostlocations.Investmentinnewfossil-fuelbasedhydrogenproductionmightentaillong-termlock-ineffectsforproducersandresultinmissedopportunities(i.e.,lackofgreenhydrogenproductioncapacities)if,inafewyearsfromnow,

theworlddemandmoreandmoregreenhydrogen.Gulfcountriesshouldthereforedevelopaforward-lookinggreenhydrogenstrategythatenablesthemtoproactivelyparticipateintheglobalenergytransformationandbecomeworld-leadersincleanenergyproduction.InOctober2021,

SaudiArabia'sMinisterofEnergy,

expressedtheambitiontobecometheworld'slargesthydrogenproducer.Whilethenationalhydrogenstrategyiscurrentlybeingfinaliseditwasalreadystatedthathydrogentechnologieswillattract$36bn(www.csis.org).Thecountry'shydrogenpolicyiscloselyalignedwithVision2030.Vision2030outlinesacomprehensivetransformationofSaudiArabia.Althoughhydrogenisnotexplicitlymentionedinthedocument,itsstrategicobjectivesemphasisesignificantincreasesindomesticvaluecreation,non-oilexports,renewableenergy,

andthenaturalgasindustry.Furthermore,SaudiArabiaplayedaroleinco-developingtheCircularCarbonEconomy,

aconceptadoptedbytheG20duringitspresidency,whichisrelevantto(blue)hydrogen.Thisframeworkfocusesonenergyefficiency,carbon-neutralpowergeneration,naturalcarbonreduction,andextensivecarboncapture.Furthermore,SaudiArabiahassignedseveralMoUs(i.e.,withGermanyandJapan)toestablishcooperationsregardinghydrogen(Öko-Institut2022).Similarly,Oman'sVision2040doesnotexplicitlyrefertohydrogenbutemphasisesthegeneraldiversificationofenergysources.InFebruary2020,anationalhydrogenstrategywasResearchSeries2023May16announcedandisexpectedtobeunveiledsoon.InAugust2021,

Omanestablishedthe"Hy-FlyAlliance,"whichbringstogethergovernmentagencies,theoilandgassector,

educationalandresearchinstitutions,andtheportsofSoharandDuqminacollaborativeplatform.Additionally,severalministrieshaveestablishedhydrogendivisions,andastate-ownedhydrogencompanynamedHydrogenDevelopmentOmanhasbeenformed(Öko-Institut2022).WhileKuwaithasyettoadoptanationalhydrogenstrategy,awhitepaperforastrategywaspresentedin2021.

ThewhitepaperalignswiththeoverarchingVision2035"NewKuwait"andsuggestspromotingcarboncapture,renewableenergy,

andbothgreenandbluehydrogenproduction.ItalsoadvocatesfordomesticuseofhydrogenandincreasedcooperationwithotherGCCcountries.GreenhydrogenisconsideredmorerealisticforKuwait,asthecountryisanetimporterofnaturalgas(www.tresor.economie.gouv.fr).In2021

theUAEpublisheditsHydrogenleadershiproadmapwiththeobjectiveofestablishingthecountryasaleaderinthehydrogensector.

Theroadmapaimstocreatenewvaluechainsfortheexportoflow-carbonhydrogenanditsderivatives,aswellastheproductionofsteelandjetfuelusinghydrogen.TheUAEplanstodeveloparegulatoryframeworkwithappropriatepolicies,standards,andcertificationstosupporttheseefforts.WithintheroadmaptheUAEhassetatargetofcapturing25%oftheglobalhydrogenmarket,aiming

tobea“top10”

globalhydrogenproducerby2031().Bahraininitiallyapproachedhydrogencautiously,commissioningfeasibilitystudie