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(OAPEC): The Arab region is promising to invest in hydrogen

30-08-2021

The General Secretariat of the Organization of Arab Petroleum Exporting Countries (OAPEC) said today, Monday, that the Arab region is "a promising investment par excellence" in hydrogen, as it is one of the main attractions for foreign investments in the field of decarbonized energy, based on its geographical location close to the target markets. This came in a press release by (OAPEC) on the sidelines of its participation in the second Middle East and North Africa conference in the field of energy, with a working paper (success factors and challenges for building the hydrogen sector in the Arab region). Omani minerals for a period of two days. OAPEC stressed that the Arab region is characterized by its proximity to the European market and the existence of economic partnerships with it that extend over decades, in addition to the deep-rooted strategic relations between national petroleum companies and international energy companies. She stated that the Arab region is the cheapest globally in the cost of producing gray and blue hydrogen, which ranges between 1.5 and 1.5 dollars per kilogram, in addition to that it is rich in renewable energy resources used in the production of green hydrogen, such as wind energy, whose speed in some locations reaches 11 meters per second, which is among the speeds The world's highest, as well as solar energy, which is available for more than 3,900 hours throughout the year, which is the highest rate in the world. She explained that these combined components focus on starting to implement investment projects for the purpose of exporting to potential markets, pointing out that the Arab countries interested in hydrogen succeeded in signing five memoranda of understanding and cooperation at the government level with the major potential markets, namely Germany and Japan, to cooperate in the field of hydrogen and the possibility of exporting to them. She stated that expectations indicate that the demand for hydrogen will reach 650 million tons annually by 2050, which is equivalent to about nine times the global demand at the present time, which is about 72 million tons annually. OAPEC stressed that this increasing demand for hydrogen necessitates the implementation of giant hydrogen production projects to meet this huge growth. Hence, the importance of the Arab region emerges due to its attractive elements for investment, given its huge infrastructure for the natural gas industry that can be relied upon as a pillar for the development of the hydrogen sector. In the future. She indicated that some Arab countries have begun to take serious and tangible steps to overcome the challenges and obstacles facing the emerging hydrogen sector. Five Arab countries, namely the UAE, Saudi Arabia, Egypt, Oman and Morocco are currently preparing national plans and strategies for hydrogen and updating the national energy plan to take into account the future role of hydrogen in meeting energy demand. . With regard to the regulatory procedures that cover commercial and functional aspects and the rules of security and safety, OAPEC clarified that the sector is still at a very early stage that requires preparation for the enactment of many legislations and regulatory procedures to organize work in hydrogen production projects and its use applications, where it is possible to benefit from the current gas laws and related legislation . She pointed out that the number of announced projects for hydrogen investment in the Arab countries is constantly increasing, as the number of projects in the current list has increased to 21, which includes a variety of hydrogen production projects, including green and blue hydrogen, blue and green ammonia, with a total of 19 projects distributed in 8 Arab countries targeting European markets. and Asian. She stressed that her participation in the conference comes within the framework of the organization's interest in the issue of hydrogen and to present its view on the role that it can contribute to the process of energy transformation and to highlight the components owned by Arab countries in order to play a leading role in this promising market and how to overcome obstacles to building a hydrogen economy.