National Hydrogen Strategy

2031.This forecasted capacity is The UAE possesses an extensive to progressing global relationships. Several existing hydrogen projects $15 billion earmarked for landmark in a world-class ecosystem of for decarbonisation of the country's scale network of refining and and a robust project pipeline are in decarbonisation projects by 2030 universities and research grid. petrochemical facilities. existence. including carbon capture, institutions. Low-cost gas resources and electrification, new CO2 absorption carbon capture and utilisation technology and enhanced (CCUS) experience will make the investments in hydrogen and UAE a leading producer of renewables. competitively priced low carbon hydrogen. 6 UAE's current clean energy landscape The UAE's national champions and businesses are already active across the end-to-end value chain for hydrogen. They are well- positioned to support and participate in the emerging hydrogen economy. Oil and gas, renewables, chemicals, petrochemicals, steel, and aluminium are established sectors with a wealth of skills and capacity. Hydrogen represents an appealing diversification opportunity for those sectors as the country continues its energy transition. The UAE starts from a position of strength with 20+ projects and developments on the ground. Renewable energy source (RES) developments are shown, highlighting the importance of additionality to support electrolytic hydrogen production. Masdar are the electrolytic hydrogen champions for Abu Dhabi and will be coordinating green hydrogen activities. 7 ADNOC Blue Ammonia Dubai's First Green Hydrogen Plant 2GW Green Hydrogen to Ammonia Project ADNOC is developing plans for a world-scale blue ammonia production Dubai's first green hydrogen plant was commissioned in May 2021. The A memorandum of understanding was signed in July 2021 between multi- facility in Ruwais, Abu Dhabi, at the TA’ZIZ industrial ecosystem and US$14 million project is a public-private partnership between Dubai Electricity energy and water utility Abu Dhabi National Energy Company PJSC (TAQA) chemicals hub. In the design phase, the facility’s capacity will be 1,000 and Water Authority (DEWA), Expo 2020 Dubai and Siemens Germany. The and Abu Dhabi Ports to develop an industrial-scale green hydrogen-to- kilotons of blue ammonia per annum. Design contracts have been awarded green hydrogen project covers an area of 10,000 square meters at the ammonia project in Abu Dhabi 6. The project includes turning green hydrogen for the initial Front-End Engineering and Design (Pre-FEED) work to Wood outdoor testing facility of the DEWA Research and Development Centre, part into liquid ammonia to supply ships that have been converted to use which will be done alongside a feasibility study undertaken by ADNOC on the of the Mohammed bin Rashid Al Maktoum Solar Park 4. The park’s current ammonia as bunker fuel, as well as exporting ammonia via specialised gas supply of blue hydrogen to the project from its Ruwais operations. The start- operational installed capacity is 2,127 MW of photovoltaic (PV), and a total carriers from Abu Dhabi Ports. The green hydrogen is to be produced via an up is aimed at 2025. With more than 300,000 tonnes per annum of hydrogen capacity of 5GW is planned by 2030. The green hydrogen plant harnesses electrolysis unit connected to a 2-GW solar PV farm, which will be built at the produced at Ruwais Industrial Complex, ADNOC is already a significant the solar photovoltaic-generated electricity from the Phase 1 of the MBR Khalifa Industrial Zone Abu Dhabi (KIZAD), an industrial park near Abu Dhabi producer of hydrogen and ammonia 2. Solar Park to produce hydrogen using Proton Exchange Membrane (PEM) Ports- run Khalifa Port 7. This industrial zone will also accommodate the electrolysis during the day. It has the capacity to produce 20 kg of hydrogen ammonia production plant with a direct pipeline to the Khalifa Port, which will This project will help to accelerate ADNOC and the UAE’s leadership in per hour 5. The green hydrogen produced is stored and used to complement house a storage facility enabling large volumes of ammonia to be directly emerging low carbon fuel value chains. In November 2021, Japan’s Mitsui & DEWA’s energy storage capability for energy shifting to meet electricity delivered to the port. Co. Ltd (Mitsui) and the Republic of Korea’s (Korea) GS Energy Corporation generation demand. (GS Energy) announced their partnership with ADNOC on the project. The As an industrial-sized project, this will aid in transforming the Khalifa Port into partnership demonstrates international investors and the UAE’s interest in The project demonstrates the production of green hydrogen from solar a major hub for green ammonia exports to international markets such as meeting the needs of global export markets and Japan and South Korea's power, storage, and re-electrification of hydrogen as the first solar-driven Europe and East Asia. This project highlights the strength of the UAE's energy and industry markets 3. The blue ammonia will be made from nitrogen green-hydrogen producing facility in the Middle East and North Africa region. resources and entities to lead the way in green hydrogen production. TAQA and blue hydrogen, derived from natural gas feedstocks, with the carbon The plant also can house future applications and test platforms for the is an internationally recognised leader in large-scale, low carbon electricity dioxide by-product from hydrogen production, captured and stored. The different use cases of hydrogen, including mobility and industrial uses. and desalinated water sectors. With electricity and desalinated water as key project will build on ADNOC’s advantaged position as a leader in carbon inputs for green hydrogen production, TAQA is advantaged in facilitating the capture and underground storage with the Middle East’s first commercial project, placing Abu Dhabi at the heart of the emerging market for green CCUS facility at Al Reyadah. hydrogen. Source: Fertiglobe joins ADNOC’s blue ammonia facility in Abu Dhabi’s Ruwais Source: Dubai commissions hydrogen plant Source: TAQA Group and Abu Dhabi Ports’ eye green ammonia bunker-producing project 8 The UAE’s hydrogen supply chain Hydrogen is a versatile energy vector that can be produced from a range of feedstocks. Hydrogen can be used directly as a clean-burning gas for industrial heat, converted to green ammonia, injected into natural gas grids, to produce decarbonised shipping and aviation fuels, reconverted into electricity, or used as a transportation fuel. Low carbon hydrogen is needed to enable the transition to net zero through: – Decarbonising hard-to-abate sectors: Feedstock for ammonia, methanol, and steel as a direct reducing agent, or through direct combustion or fuel cells for other high-temperature industrial processes in heavy industry, heavy-duty and long-haul transport, aviation, and shipping. – Enabling greater energy security in a net-zero world: Low carbon hydrogen can be generated from fossil and renewable energy resources; many countries can benefit from hydrogen for energy supply diversification. – Enabling renewable energy integration and grid flexibility: Hydrogen can be used for storage enabling better integration of large amounts of variable renewable energy into the national energy system. – Enabling clean energy trade: Hydrogen trade can create a channel between regions with excellent renewable energy potential and regions with high energy demand. Low-carbon hydrogen's commercial-scale adoption faces several obstacles, such as the immaturity of technologies across the supply chain and uncertainty in off-take. In addition, the absence of dedicated hydrogen infrastructure also presents a significant hurdle that requires attention. The scale has not yet been achieved, which puts pressure on cost and risk. The adoption of hydrogen will depend largely on certainty provided to investors through national policies and international agreements including a regulatory and certification framework. The UAE will focus on mitigating early mover risks and reducing costs to help accelerate the adoption of low carbon hydrogen use cases. The colours of hydrogen Low carbon hydrogen within the UAE is defined as all hydrogen from renewable resources in addition to hydrogen from non-renewable resources with CCUS. For the purposes of this strategy, low carbon hydrogen refers to all the colours referenced in Figure 3, except grey. The UAE understands this definition is subject to change across geographies and international emissions thresholds are likely to be announced. Hydrogen is differentiated by its colour codes, indicating the production method used. The colour codes are a helpful reference, but the carbon intensity of the hydrogen production process is a more significant factor. The colour nomenclature is used in this strategy to enable greater clarity in the different hydrogen production methods and technologies, and how these are being developed in the UAE. This allows for comparison with other energy sources. The most common hydrogen colour, grey hydrogen, is produced through methane reformation, including both auto- thermal reforming (ATR) and steam methane forming (SMR), and accounts for 95% of the current supply. However, this method is not suitable for the goal of achieving net-zero emissions 8. To achieve this goal, low carbon hydrogen must be produced. Carbon intensity measures the greenhouse gas (GHG) emissions over the entire hydrogen production and “well-to- wheel” lifecycle and is usually expressed in kilograms of carbon dioxide (CO2) equivalent per kilogram (kg) of hydrogen or grams of CO2 equivalent per mega-joule of hydrogen. The UAE are exploring certification to track the carbon emission from each process across the hydrogen value chain from renewable energy generation to construction and production, through to distribution. Figure 3 The different colours of hydrogen relevant to the UAE and how they are produced 9 The UAE’s hydrogen potential Modelling results by sector The UAE will use policy and financial levers to drive the Aluminium The hydrogen potential calculation in the aluminium sector includes different parameters such as production demand for low carbon hydrogen in the region, supporting capacity, expected growth rate, hydrogen intake for hydrogen-based boilers and Emirates Global Aluminium’s (EGA) projections. Aluminium production is a fast-growing industry in the UAE. The global industry decarbonization and promoting trade in green products. potential low carbon hydrogen demand for aluminium is estimated to be around 0.37 mtpa in 2031, with a steady increase until 2050. 10 Currently, the UAE's hydrogen demand is 0.5 mtpa, primarily produced through SMR 9. Most of the hydrogen in the UAE is used in the refining and chemical industries. With the goal of achieving net zero, there is growing interest in Grid Flexibility Hydrogen can play an important role in the power sector by providing grid flexibility as the share of variable widespread hydrogen adoption, particularly in sectors that are difficult to decarbonise. renewable electricity increases to fulfil the net-zero plans. Underground hydrogen storage will present an asset for seasonal flexibility, while plants could play a role in the industry by balancing overground tanks Hydrogen sectoral demand in the UAE could potentially grow more than fivefold between 2031 and 2050, with hydrogen-powered regeneration. This use-case, however, is only foreseen in the long term and is amounting to around 10.1 million tonnes by 2050, as demonstrated in Figure 4. expected to constitute around 0.29 mtpa by 2050. Iron and steel Hydrogen based steel will replace conventional crude steel production via the direct reduction of iron ore. Emirates Steel aims to expand its production capacities in the long run and unlock the green steel market faster than other leading companies globally. Under the right market conditions, these and other efforts will translate into 0.6 mtpa predicted demand for low carbon hydrogen in 2031 for the sector. 11 In the long term to 2050, they plan to deploy 17.5 mtpa of steel production, which could require 1 mtpa of hydrogen dependent on rates of adoption across different processes. Chemicals and The MENA region shows the highest growth of the ammonia industry globally. Therefore by 2050, the fertilisers production capacity is expected to triple compared to 2031 leading to long-term demand growth for hydrogen. Low carbon hydrogen market penetration could reach 0.28 mtpa in 2031, constituting more than half the total hydrogen demand. This trend of increasing demand for low-carbon products is expected until 2050, when grey hydrogen is anticipated to be phased out. Refineries ADNOC Refining operates one of the world’s largest and most sophisticated refineries, with a demonstrated capacity to process 1 million barrels of oil per day. Currently, 0.2 mtpa of low carbon hydrogen is forecasted for 2031 as shown in Figure 4, although under the right conditions ADNOC Refining has the capability to produce up to 0.46 mtpa with most of that production utilized for self-consumption. Based on projects in the pipeline, there is potential for excess of approximately 0.1 mtpa of hydrogen with varying carbon intensities to be made available as a stand-alone product. As part of its long-term strategy, ADNOC Refining is developing its overall decarbonisation roadmap aligned with ADNOC and UAE’s Net Zero Commitments. Conversion of the existing grey hydrogen production to blue via CCUS is an initiative that is being explored as part of ADNOC’s long-term strategy. This conversion is subject to fulfilment of necessary market requirements and alignment to its overall decarbonisation roadmap. Aviation Aviation will see moderate demand for low carbon hydrogen over the next few decades, meeting 2 mtpa by 2050. 12 The preliminary demand shown here is based on a range of parameters, including the share of sustainable aviation fuel (SAF) as a percentage of total demand, the energy intensity of kerosene (including SAF and bio-SAF) and hydrogen planes and the kerosene to hydrogen conversion factor (based on the hydrogen content in kerosene). Shipping Shipping and maritime are forecasted to reach 0.45 mtpa by 2031, scaling to approximately 3 mtpa by

2050. The methodology for estimating the future hydrogen demand is based on quantitative data from IRENA 13. Other parameters are conversion factors, such as ammonia-to-hydrogen and methanol-to- hydrogen, energy intensity and shipping demand factor. The estimation shows that the shipping industry must meet various challenges, including suitable and safe locations for fuel storage and bunkering facilities, proper bunkering procedures (including shore-to-ship and truck-to-ship modes), and a framework for supporting national and international regulations 14. Figure 4 UAE Low Carbon Hydrogen Sectoral Demand from 2031 to 2050 in mtpa. Source: Fraunhofer CINES. Transport The estimated low carbon demand in the sector stands at only 0.02 mtpa in 2031 but is expected to ramp The forecasts in Figure 4 are based on stakeholder input and global industry benchmarking, representing a up in the long run. Net-zero transport systems will likely require hydrogen as a fuel source for heavy-duty technically feasible figure reliant on market and pricing conditions. Significant growth could be achieved in the right vehicles operated with fuel cells to exploit the technology's operational flexibility by enabling long distances market environment where necessary incentives and supporting policies are implemented. and quick refuelling. As electric trains are expected to have the largest share in the railway sector, hydrogen will play a minor role in routes that cannot be electrified. While iron and steel, shipping, aviation, and transport will be the long-term driver for demand, in the near term, demand will likely be driven by the more mature markets in industrial feedstock – fertilisers, chemicals and refineries. 10 Sectoral demand The demand for hydrogen varies greatly depending on its use and the available alternatives. Factors such as the pace of the energy transition, technology adoption, and policy and financial support also play a role in determining demand. Increasing domestic demand is important to become a top producer of low carbon hydrogen. Thus, the UAE will focus on stimulating local demand across the following sectors. Sector The UAE today The opportunity for the UAE tomorrow The challenges in getting there The UAE’s journey so far Aluminium The UAE has a strong industrial footprint that exports There is great potential for hydrogen to play a role in The main barrier to the adoption of hydrogen in EGA signed an agreement with General Electric (GE) to products globally. decarbonising the UAE’s heat-intensive industries. aluminium and other similar industrial uses is the high examine how hydrogen could reduce emissions from 33 The UAE is the world’s fifth-largest aluminium-producing Gas-fired plants can be retrofitted to run on a blend of low cost compared with conventional production methods and natural gas-fired turbines, with a combined electricity country, producing around 2.6 million tonnes annually 15. carbon hydrogen or ammonia for heat-intensive low technology readiness. generation capacity of 5,200 MW, at their Jebel Ali and Al industries, including aluminium smelting and cement. Taweelah facilities. Low carbon hydrogen can replace many fossil fuel feedstocks and help decarbonise high-temperature Hydrogen can be blended with natural gas up to a certain The agreement will also investigate how hydrogen could industries where electrification is not an option. percentage, depending on the application. System play a role in new power plants in the future. changes and equipment modifications would allow 100% hydrogen fuel in the long term. Hydrogen can also be used to reduce emissions in the cast house, digestion and calcination process. The UAE can benefit significantly from green aluminium export aluminium, which is in high demand globally. Grid Flexibility In 2021, the UAE power market's cumulative installed Hydrogen can produce electricity and heat, with high Cost is the most significant barrier to the use of green ADNOC and GE Gas Power initiated a collaboration to capacity was 43.5 GW. Natural gas-based electricity efficiencies and without emissions. Hydrogen applications hydrogen in the power sector due to high electrolyser create a decarbonisation roadmap reducing carbon generation had a 95% share in the electricity mix in 2020 have the potential for load balancing in the electricity costs and low efficiencies. The feasibility of connecting emissions from gas turbines powering ADNOC’s and is expected to dominate up to 2030. network and leverage short-term and long-term geological electrolysers to the electricity network in the UAE is still to downstream and industrial operations. Both companies The UAE has committed to meeting a significant portion storage for seasonal energy variations. be assessed. are also exploring the potential of hydrogen and of its electricity needs using clean energy by 2050, which The UAE is exploring the application of low carbon The market size needs to be established as long-term hydrogen-blended fuels for low carbon power generation will involve an expansion of both renewable and nuclear hydrogen as energy storage to manage the intermittency storage demand may be limited in the UAE. Seasonal ammonia and CCUS for powering gas turbines. power generation. This scale-up of renewables will of renewable energy from solar PV and as a strategic variation is currently aligned with renewable generation DEWA is exploring grid flexibility as an off-take option at require a new energy storage and transmission reserve for buffering during outages. since cooling needs are met with solar irradiation 16. its Green Hydrogen pilot. infrastructure. Additionally, seasonal energy exports are forecast to grow to supply countries requiring hydrogen to support seasonal variation in their renewable energy generation. The UAE is well-positioned to capture this opportunity. Iron and steel The iron and steel industry contributes 7 to 9% of global The UAE is well-positioned to become a global leader in Cost competitiveness with conventional methods is a Emirates Steel and TAQA announced a partnership in GHG emissions, equating to 1.9 tCO2 per tonne of steel low carbon steel production due to its existing gas-based barrier to using low carbon hydrogen in the iron and steel August 2021 to develop a green hydrogen project, on average. Alternatives such as the direct reduction DRI processes. By using low-carbon hydrogen to produce industry. enabling the production of the first green steel in the (DRI) process using green hydrogen instead of coal must "green" steel, the UAE could take advantage of the MENA region. be adopted. growing demand for clean products. This partnership supports the growing demand for low The UAE produced 3.5 million metric tons of steel as of To maximize the benefits of this opportunity, the UAE will carbon steel on a national and global level, and the 2021 17. Emirates Steel, the UAE’s largest steel and explore the adoption of innovative commercial models project design has expanded to meet the anticipated building materials manufacturer, emits 50% lower GHG that leverage its DRI process. By leveraging its existing growth. This project is an essential milestone in reducing emissions per ton of steel produced compared to the infrastructure and strategic location, the UAE has the the carbon footprint of the construction, industrial and global average 18. potential to become a key player in the global green steel transportation sectors. market and create value both at home and abroad. Chemical and In the UAE, the current production capacity of ammonia is Low carbon ammonia can also be used as an energy Cost competitiveness with feedstock is a barrier to using ADNOC is already a major producer of hydrogen and fertilisers 1.2 million tonnes and 2.1 million tonnes of urea as of storage and transportation medium. Low carbon ammonia low carbon hydrogen. ammonia, with more than 300,000 tonnes per annum 2019, with the majority produced at the FERTIL ammonia is expected to play a large role as the hydrogen economy produced at Ruwais Industrial Complex. ADNOC has and urea plant at the industrial centre of Ruwais 19. develops in the UAE. Using low carbon hydrogen to plans for a large-scale blue ammonia production facility at produce ammonia in fertilisers and other chemical the Ruwais complex. Ammonia is mainly produced via the Haber-Bosh products has great potential in the UAE. TAQA and Abu Dhabi Ports have partnered to develop an process, which requires hydrogen and is predominantly used as a base chemical in producing ammonium nitrate The UAE’s already established chemicals industry with industrial-scale green hydrogen-to-ammonia project in for fertilizers. Production of ammonia results in knowledge in transport of hydrogen derivatives and Abu Dhabi, with a production capacity of 73,339 tonnes approximately 2.9 t CO2 per tonne of ammonia. 20 manufacturing capabilities will serve and scale the UAE per year. hydrogen economy. Masdar and Engie have partnered to study a green hydrogen plant to supply Fertiglobe’s ammonia production plant to be operational by 2025. 21 11 Sector The UAE today The opportunity for the UAE tomorrow The challenges in getting there The UAE’s journey so far Refining The UAE is one of the global oil-producing countries, with With the forecasted growth of the oil marked, the The increased cost associated with the addition of CCUS ADNOC has a joint study agreement with two Japanese an average output of 3.2 million barrels of petroleum and opportunity for low carbon hydrogen in the UAE oil needs to be overcome. Key stakeholders in the sector companies, INPEX and JERA, and a government agency, liquids per day 22. Hydrogen is used in oil refining, such as refining process is immense. need collaboration to enable a quick transition to low the Japan Oil, Gas and Metals National Corporation hydrodesulphurisation (HDS), removing sulphur and other The oil market potential presents an immediate demand carbon hydrogen and ensure enough is available to meet (JOGMEC), to explore blue hydrogen production in the impurities from petroleum products and natural gas and source to support the scaling of production capacity while the high demand. Policy interventions, incentives, and a UAE to supply Japanese markets. hydrocracking to produce diesel or petrol in the presence reducing the carbon intensity of the UAE’s refined oil low carbon hydrogen standard are needed to encourage of hydrogen and a catalyst. About one kilogram of products. the use of low carbon hydrogen over grey hydrogen. hydrogen is needed to refine one barrel of crude oil. None of the hydrogen used in refining is low carbon hydrogen. Growth plans are expected to increase the petrochemical output by more than 150% by 2025 23. Aviation The aviation industry is a core pillar of the UAE’s Hydrogen has the potential to decarbonise the aviation The UAE is dedicated to improving performance and The green hydrogen pilot project in Masdar City will economy, contributing to around 13% of the national GDP sector, either as hydrogen-derived SAF or in the growing the sector with high investment in infrastructure. explore the use of hydrogen in aviation fuel development. with six national airports 24. The UAE’s geographic development of hydrogen-powered aircraft 25. Some SAF production routes are still in early stages of centrality to most of the globe enhances the throughput of Replacing as much as 73% of conventional jet fuel with technology development will require significant travellers and the growth of the industry. power to liquid-based sustainable aviation fuels would investments and global R&D efforts over the next decade. In 2021, the industry produced 720 million tonnes of align the national aviation industry with the country’s 2050 carbon emissions globally. net-zero ambitions. Shipping The UAE is a key player in the global oil and gas trade, Hydrogen is a proposed alternative to traditional bunker Globally, low carbon hydrogen as an alternative to Masdar and Abu Dhabi Ports' 2GW green hydrogen to with numerous vessels transporting oil and gas through fuel. It can be used to decarbonise the shipping industry traditional bunkering fuel is still in its infancy. Although the ammonia project aims to supply ammonia to the maritime its territorial waters, home to the port of Fujairah, one of as a fuel in the form of ammonia or hydrogen-based UAE is exploring various pathways, it is still at a low industry to be used as bunker fuel. the world’s largest bunkering hubs, placing the UAE as a synthetic liquid fuels or fuel cells. maturity phase. major maritime international hub. The UAE is planning a leading position by adapting to the Conflicting views on the superior fuel type (methanol, The international shipping industry is responsible for decarbonisation strategies set by the International ammonia, or synthetic liquefied natural gas) have slowed around 2% of global energy-related CO2 emissions due to Maritime Organisation (IMO) by providing the necessary progress. the use of heavy fuel oil 26. In 2021, this accounted for bunkering infrastructure and corresponding fuels. 667 million tonnes of carbon emissions. Consequently, the strategy sees a substantial role in the international bunkering of hydrogen in the UAE’s sectoral demand. Transport The UAE has seen a significant increase in public The UAE is exploring hydrogen for vehicles that transport The UAE, to date, has focused on electrification as the The Emirates Authority for Standardization and Metrology transport usage with the introduction of new metro and goods and services on fixed routes, allowing for a pathway to decarbonisation of transport. (ESMA) established the first domestic regulations in tram lines. However, there has also been growth in the centralised refuelling station system, highlighting where The main barrier for hydrogen in light-duty vehicles is the Dubai regarding hydrogen vehicles and the use of number of private vehicles on the roads leading to hydrogen will be best placed in the transport sector 27. significant investment in a network of refuelling stations. hydrogen fuel cells in March 2019. increased traffic and poor air quality. Transport accounts for approximately 20% of global Al Futtaim Toyota has partnered with Air Liquide to open Other barriers include the high cost of development, emissions. Hydrogen provides an alternative solution to safety considerations for the distribution and storage of the first hydrogen refuelling station at Al Badia, Dubai transport sectors that are difficult to electrify, including hydrogen at refuelling stations and a lack of legislation Festival City. Heavy Goods Vehicles and long-distance transit. and policy on hydrogen for use in commercial vehicles. DEWA and Emirates National Oil Company (ENOC) have Hydrogen fuel cells offer longer travel distances between signed an MoU to cooperate in a feasibility study to refuelling and faster refuelling times compared to electric establish, develop and operate a joint integrated pilot technologies. project for the use of hydrogen in mobility. 28 12 Export demand The low carbon hydrogen export market is expected to reach Trial run of Hydrogen supply chain from the 150 million tonnes per year globally by 2050 29. Nations with UAE to Hamburg abundant resources and well-developed infrastructure will take the largest share of the market. ADNOC and Fertiglobe signed an agreement with Hamburger Hafen & Logistik (HHLA) in March 2022 to test hydrogen transport from the UAE to Germany. While the UAE has a strong export ambition regarding low carbon hydrogen, there is also a priority consideration The hydrogen supplied by ADNOC was shipped as clean ammonia from for domestic demand for hydrogen. The UAE's low cost of renewable energy could bring about a cost-competitive Fertiglobe’s plant in Abu Dhabi source of low carbon hydrogen. Low-cost renewables will benefit the export prospects of low carbon hydrogen and The first shipment arrived at the Port of Hamburg on October 21, 2022, the competitiveness of products that contain hydrogen, such as green steel and green ammonia, in terms of their attended by H.E. Sultan Ahmed Al Jaber, the UAE's Minister of Industry and carbon footprint, product diversification and economic value. Advanced Technology, Dr. Peter Tschentscher, Mayor of Hamburg and The UAE is well positioned to become a major global player, leveraging its strong infrastructure, existing export Michael Hagemann, Senator for Economics. This project represents a facilities and ports and a strong geographic location to supply to European and Asian markets. The UAE’s low milestone in the planned scale-up of blue ammonia production capabilities in carbon hydrogen export market is expected to be in the form of chemicals and industrial products, such as Abu Dhabi. The project originated from a memorandum of understanding ammonia, synthetic fuels, and green steel, up to 2031 30. (MoU) and joint study agreements (JSA) between ADNOC and German companies and shall lay an essential foundation to understand the supply chain The UAE's export potential is presented in Figure 5 as a range between low and high export forecast. The low for later medium-term imports of blue and green hydrogen derivatives to hydrogen export potential reflects hydrogen demand only from certain hard to abate applications, mainly in industry Germany. and transport. The high export forecast corresponds to the latest published National Strategies, roadmaps and commitments announced by focus countries and encompasses a wider range of sectors where hydrogen can be ADNOC is progressing towards its goal of increasing hydrogen and low-carbon introduced. ammonia production in Abu Dhabi. This development marks a significant achievement in ADNOC's plans to expand its production capabilities. 31 For 2031, a production capacity between 0.6 mtpa and 1.8 mtpa will be needed to address import targets for these countries. This has the potential to scale significantly up until 2050. Figure 5 Low carbon hydrogen export demand (mtpa). Source: Fraunhofer CINES. 13 Production To become a top global producer of low carbon hydrogen in alignment with the vision, the UAE’s ambition is to produce 1.4 mtpa by 2031. Although this requires a lower investment than unlocking the full potential of the hydrogen market (2.7 mtpa as mentioned in the UAE’s hydrogen potential), significant investment will still need to be made. ADNOC and Masdar have demonstrated leadership in the UAE directing efforts towards development of production and networks infrastructure for export whilst the UAE regional sectors transition. Currently, the UAE has a forecast production capacity of 1.4 mtpa by 2031 spread across different production pathways and regions. This production capacity will position the UAE as a top producer globally. Electrolytic from renewable energy (Green) Produced within the UAE 0.5 mtpa Electrolytic from renewable energy (Green) Produced abroad 0.5 mtpa Methane reforming with CCUS (Blue) 0.4 mtpa Electrolytic from nuclear energy (Pink) 0.0075 mtpa To achieve the production outputs of 0.5 mtpa of green hydrogen, the UAE will require an in-country electrolysis capacity of 8.7 GW H2 powered by 15.3 GW of PV plants. In addition, approximately 94 km2 of land is required for these PV plants. An additional 0.4 mtpa of blue hydrogen is foreseen and translates to 1.98 GW hydrogen of methane reforming fed with around 54,594.3 million standard cubic feet (MMscf) of natural gas, resulting in 5.1 mtpa of CO2 captured by the CCUS facility. Emirates Nuclear Energy Corporation (ENEC) are forecasting production of 7,500 metric tonnes of pink hydrogen by 2031 from 50MW of nuclear energy capacity. The table below summarises the required inputs to produce hydrogen at the forecasted quantity by 2031. Year 2031 Hydrogen colour Green (Produced within the UAE) Blue Hydrogen quantity supplied [mtpa] 0.5 0.4 Hydrogen electrolysis capacity 8.7 - required [GWH2] Electricity generation capacity 15.3 - [GWel] Carbon capture (mtpa) 32 - 5.1 Natural gas required [MMscf] - 54,594.3 33 Land (km2) 34 ~ 94 - 14 UAE’s production today The UAE holds the world's seventh-largest natural gas reserves at 215 trillion cubic feet 35, with approximately 30% of its GDP based on oil outputs 36. The UAE is currently exploring the following low carbon hydrogen production methods at different maturity levels and commercial application stages. The different colours How is the hydrogen produced? What is happening in the UAE today? What are the biggest challenges facing the UAE? SMR produces hydrogen, carbon dioxide and carbon monoxide The UAE is well-positioned to lead the blue hydrogen market due • Production of hydrogen from methane reforming has an from methane using high-temperature steam under 3-25 bar to its low cost, ample supply of hydrocarbons, large-scale efficiency of 65-75%. 38 pressure and a catalyst. Carbon monoxide can undergo a similar ammonia and hydrogen production facilities, and favourable • Fuel costs make up a large percentage of production process to produce more hydrogen and carbon dioxide. Hydrogen underground formations for carbon dioxide storage. The UAE costs. and impurities are then separated, with the carbon dioxide stored sees blue as a steppingstone to increase domestic hydrogen use • CCUS increases fuel, capital, and operation costs by underground. and distribution. 50%. ATR combines steam and partial oxidation reactions to produce Although adding CCUS to hydrogen production from natural gas • CCUS facilities could become stranded assets if they fail more hydrogen than partial oxidation alone, with faster start-up will increase production costs by 50%, the UAE can still have one to achieve target capture rates and when green becomes Methane reforming with and response times than methane reforming and higher of the lowest costs for blue hydrogen production globally. The competitive with blue. CCUS emissions recovery at a lower cost. estimated cost of blue hydrogen production is $1.5/kg 37, • Limited commercial-scale projects have captured 90% or competitive with grey hydrogen production in the US and lower more CO2 in the medium to longer term. than other major markets such as the European Union, China, and India. The UAE has implemented 14 projects to reduce GHG emissions by 1 million tonnes of CO2 equivalent per year under the Clean Development Mechanism (CDM). Electrolysis converts water into hydrogen and oxygen by applying The UAE has substantial potential for green hydrogen production • The overall efficiency of electrolysers and their lifetime an electric current. due to its abundant solar energy, with approximately 71,000 need to be improved. square kilometres of land area and an annual average daily solar • Ability to provide uninterrupted RES generation to This hydrogen is considered low carbon with zero greenhouse radiation of 6.3 kWh/m2 per day 39. electrolysers when reliant primarily on solar PV. gas emissions if the electricity is produced via renewable sources. With a goal of 14.21 GW of installed solar PV by 2031, the UAE's • Land available for solar development needs to be installed capacity has dramatically risen from 100 MW in 2015 to identified in the UAE. 3.1 GW in 2021, making it the most significant relative increase in • Investment is needed to help scale production to meet renewable energy worldwide in the past decade. This, combined demand (both domestic and export). Water electrolysis using with one of the world's lowest solar power costs of 1.35 USD RES • Investment is needed to help catalyse demand. cents per kilowatt hour at the Al Dhafra plant, demonstrates the UAE's ability to produce electrolytic hydrogen efficiently and on a • Electrolyser costs need to reduce to lower overall large scale 40. levelised cost of hydrogen (LCOH) The UAE are exploring alternative sources of renewable energy such as wind or concentrated solar power to meet decarbonisation objections and supply green hydrogen. 15 The different colours How is the hydrogen produced? What is happening in the UAE today? What are the biggest challenges facing the UAE? Pink hydrogen from nuclear energy can provide ENEC has three operational nuclear units at Barakah each with 1.4 • Low technology readiness level for hydrogen production via efficiencies and lower costs due to increased heat. This GW capacity. A fourth unit is current under development but once nuclear on an industrial scale. additional heat allows a range of electrolysis processes, operational, they will provide 25% of the country's power needs and • More research is required to understand how existing nuclear including cold, low-temperature steam, high-temperature abate 21 million tons of carbon emissions annually. reactors need to be optimised for high-temperature steam, and high-temperature thermochemical production. thermochemical production. ENEC and Électricité De France (EDF) signed a MoU to collaborate For direct electrolysis of water, hydrogen production on research and development for low carbon hydrogen production via • Need to develop technology at scale. requires a minimum temperature of 2500°C (high- carbon-free nuclear energy to accelerate nuclear-powered • The current process has low efficiency and poor economics. temperature nuclear energy). Lower temperatures are development. Hydrogen production • Changes needed for commercial viability. needed for thermochemical processes such as the water- using nuclear energy splitting cycle (low-temperature nuclear energy). In a pyrolysis reactor, methane is heated to 1000-1500°C Khalifa University is exploring using pyrolysis technology in the UAE • The production method is in the early stages of development. (in the absence of oxygen) and dissociates into solid to produce hydrogen at a lower cost. The solid carbon produced is an • Further investment into research and development is needed carbon and hydrogen. Solid carbon has lower industrial product with a global market of ~15 million tons per year, for industrial-scale viability. greenhouse gas emissions than methane reforming, and used for tires and other rubber products, and inks for printers, at • The application of methane pyrolysis is limited by the hydrogen can be used as fuel in many applications. prices from $0.5 to $2 per kg 42. Simultaneously, new carbon requirement of a solid catalyst that deactivates quickly. Hence, it still requires electricity, but several times less applications like carbon-based composite buildings could be than electrolysis, depending on the technology used 41. considered to expand the existing market 43. Several turquoise hydrogen production methods exist, of Khalifa University is also exploring the use of carbon-based additives Methane pyrolysis which catalytic thermal decomposition is the most used. to support the decarbonisation of concrete. Recent research states that hydrogen produced by methane pyrolysis via thermal plasma has a low carbon intensity, reaching 0.06 kgCO2e/kg. . Biomass, a renewable organic resource such as crop ADNOC, bp and Masdar have joined with Abu Dhabi Waste • Low efficiency of biogas reactor, resulting in lower yields and residues or organic waste, can be broken down into Management Centre (Tadweer) and Etihad Airways to explore hydrogen production rates. hydrogen and other products using heat, steam, and production of sustainable aviation fuels, from hydrogen and municipal • Technology readiness level is not yet proven on a large scale. oxygen without combustion and is a sustainable waste gasification, in the UAE. 44 • Production dependent on the availability and uniformity of the alternative to landfill and waste incineration. UAE-based Bee’ah Energy is partnering with UK-based Chinook feedstock and its cost. It is a self-sustainable thermal conversion treatment Sciences to produce up to 18,000 kg of low carbon hydrogen per day (gasification and pyrolysis) of waste wood, plastic and from non-recyclable waste 45. The $180 million waste gasification municipal solid waste which breaks into a mixture of energy project will use Chinook Sciences’ RODECS gasification Waste gasification gases or synthetic gas (syngas) composed of methane, technology. hydrogen, and carbon monoxide. The syngas is collected and used to generate hydrogen and electricity. This The planned hydrogen output is expected to lead the transition of the production pathway is especially beneficial for hydrogen company’s fleet of up to 800 waste collection trucks to fuel cell trucks. derivatives such as low carbon fuels. This cost-competitive method has the potential to be equal to or less than the cost of diesel and gasoline and could fuel 1,000 hydrogen- The carbon intensity of the process can be near 0 or powered vehicles a day 46. negative with CCUS. 16 Figure 7 presents the UAE’s hydrogen production capacities supplying all potential sectoral demands and the Meeting Net Zero 2050, hydrogen’s role beyond 2031 export for the lower international demand forecast (see The UAE’s hydrogen potential). Under the 2050 Net Zero strategy, the “Diversify Scenario” developed outlines a pathway to a decarbonised future. To achieve this vision, the UAE would need to scale low carbon hydrogen production to support hard to abate sectors. The Net Zero 2050 model forecasts an equal share of green and blue hydrogen in the long run. 8.00 120.00 14.9 mtpa Figure 6 outlines the balance of low carbon hydrogen production by 2040 and 2050 to meet forecast demand. 2040 2050 7.00 100.00 6.00 80.00 5.00 H2 Production [mtpa] Installed capacity [GW] 7.5 mtpa Figure 6 Shares of hydrogen colours in 2040 and 2050 4.00 60.00 ENEC will also play a key role in developing the electrolytic technology to produce zero-carbon hydrogen through nuclear. The advantage of nuclear energy as an alternative energy source for hydrogen production is its ability to provide a base-load production that could increase energy security for the UAE. 3.00 40.00 The Diversify Scenario includes: 2.00 20.00 1.00 Futureproofing key export sectors, i.e., Capturing growth opportunities in new 0.00 0.00 CCUS ramp-up for petrochemicals, export markets, including low carbon Green Blue Pink Green Blue Pink Aiming to achieve net zero emissions steel, oil and gas, and aluminium and hydrogen and green fuels for shipping by 2050. 2040 2050 providing early green power for and aviation and Direct Air Capture aluminium and petrochemicals offsets. H2 Production H2 Production Capacity Figure 7 Forecasted UAE production requirement including low export potential. Source: Fraunhofer CINES. 17 The UAE low carbon hydrogen model assumes a sub-system for green hydrogen production, including utility-scale photovoltaic systems with optimally sized PEM electrolysers. The photovoltaic capacity needs will potentially decrease by coupling these systems with large-scale storage technologies. For blue hydrogen, ATR is considered because of its higher achievable capture rates at relatively lower costs 47. ENEC is exploring different technologies for hydrogen generation as nuclear-based energy offers an excellent solution for generating the electricity, heat and steam required for low carbon hydrogen production. The company is interested in demonstration projects focused on coupling nuclear reactors and SOEC. However, the scale-up of such technology requires overcoming various obstacles, such as nuclear regulatory requirements for steam reuse and safety issues and developing SOEC technology to a commercially viable level. A possible alternative for pink hydrogen production is PEM electrolysis powered by nuclear electricity. Such a decision will depend on the maturity level of SOEC over the coming years. As technologies including small modular reactors are advanced and deployed, the opportunity for distributed nuclear energy generation could also prove valuable for the UAE in pink hydrogen production. Different production approaches will be explored to support the UAE in meeting longer term targets. It is important to note that the capacity figures outlined below are based on today’s technologies. It is anticipated that as the industry develops that hydrogen production efficiencies will improve, and new technologies will emerge. Year 2040 2050 Hydrogen Colour Green Blue Pink Green Blue Pink Share of hydrogen supplied [%] 45% 50% 5% 47.5% 47.5% 5% Hydrogen quantity supplied [mtpa] 3.37 3.75 0.37 7.07 7.07 0.74 Hydrogen electrolysis capacity required 55.12 - 1.7 83.2 - 3.0 [GWH2] Electricity generation capacity [GWel] 97.28 - 1.7 208.3 - 3.3 Natural gas required [MMscf] - 511,548.3 - - 936,632.9 - Land (km2) ~ 633.6 ~ 1,322 18 Networks Hydrogen networks are a fundamental component of the hydrogen economy by connecting production centres to storage points and end users. Hydrogen networks consist of the following two elements:

1. Transmission and distribution infrastructure, including pipeline and non-pipeline routes (road, rail, and marine), terminals and refuelling stations.

2. Storage infrastructure, including above-ground (storage tanks) and below-ground (salt caverns, depleted oil, or gas fields). The UAE has the assets, favourable conditions, and experience to establish low-cost transmission corridors and storage facilities to support export and sectoral demand. The UAE’s existing resources (both natural and engineered), including ports, oil and gas reserves, geography, and geology, offer advantages to rapidly developing an expansive network. Transmission Pipelines Pipelines offer the cheapest means for delivering high volumes of hydrogen. The UAE currently has four oil and ten natural gas pipelines used for regional distribution and export to nearby countries, including Qatar and Oman 48. These pipelines span hundreds of kilometres and highlight the UAE's experience building pipeline infrastructure. To move hydrogen at scale with minimal capital expenditure, the UAE could repurpose existing gas pipelines to transport hydrogen. Natural gas pipelines can be modified to transport up to 20% blend of hydrogen with minor changes 49. More substantial retrofits are needed to transport 100% hydrogen in existing pipelines, with the conversion process only taking a few years 50. Challenges arise with this approach as hydrogen can cause embrittlement which affects the strength of the pipeline material to cause cracks eventually. The UAE is planning a dedicated hydrogen pipeline to connect production, domestic users and export terminals. Shipping Transport The pipeline will connect Jebel Ali, Raz El Karma, Al Ain, and Fujairah. This will require significant investment, clear legislation and network planning to overcome the complexities of pipeline construction and management of Shipping is expected to play a significant role in transporting hydrogen and its derivatives from the UAE. The UAE multiple fuel types. has 12 commercial trading ports, including oil ports which include 310 berths and a cargo tonnage capacity of 80 million tonnes. According to the World Shipping Council, the UAE has two of the top 50 container ports in the Road Transport world 51. Road tankers allow for a flexible means of transporting hydrogen and come in two forms. The main ports include Zayed and Khalifa Ports in Abu Dhabi, Mina Rashid, and Jebel Ali Ports in Dubai. The Khalifa Port in Abu Dhabi is the first semi-automated port in the MENA region, demonstrating UAE’s commitment to

1. Horizontal cylinders carrying compressed gaseous hydrogen from the point of production to the point of continuous port infrastructure development 52. Modifications such as hydrogen terminals with ample storage storage or use. Cylinders are one of the most common and safe means of transporting hydrogen capabilities to the existing ports will be required to ship hydrogen and its derivatives. The import requirements and

2. Refrigerated tankers delivering liquid hydrogen. business case will dictate how to transport and store the hydrogen. Transporting goods by road has its limitations due to its restricted capacity and reliance on carbon-intensive For longer distance travel, hydrogen should be converted to a denser form to make its transport more cost methods which will add to the lifecycle emissions of hydrogen. To overcome the current infrastructure gap, the UAE effective. It can be converted to ammonia, liquid organic hydrogen carriers (LOHCs) or synthetic hydrocarbon fuels, will explore the use of hydrogen tankers as a last mile transport option or as a transition step to more sustainable such as methane and methanol, or it can be liquified. Ammonia has excellent potential as a hydrogen storage and modes as the market develops. Etihad Rail is also exploring the feasibility of hydrogen transport by rail through transport medium in the UAE. As ammonia is liquid at room temperature, it is easier to store without the need for specialised rolling stock prior to an established hydrogen pipeline network. compression or refrigeration. It is also more energy dense, allowing it to have a more favourable energy-to-volume ratio compared to hydrogen gas. Cost and safety remain significant barriers to the shipping of hydrogen, with further research and innovation needed to mature these technologies. Challenges in efficiency, scalability, and cost of cracking still need to be addressed. The UAE is making significant progress toward accelerating the maturity of this supply chain. The UAE has MoUs in place with Japan and Germany to support their decarbonisation efforts through the shipment of low carbon hydrogen and its derivatives. The outcomes of these engagements are reflected in successful trial shipments of hydrogen in the form of ammonia to Germany. In January 2023, Masdar signed an MoU with four Dutch companies, Port of Amsterdam, SkyNRG, Evos Amsterdam and Zenith Energy, to develop liquid organic hydrogen carriers and liquid hydrogen shipments between two main ports. Additionally, ADNOC signed an MoU with thyssenkrupp Group to focus on the development of a commercial-scale ammonia cracking after transportation. 53 19 Storage The method of storing hydrogen will vary depending on demand requirements, including seasonality in both export and local demand and short-term firming of intermittent Renewable Energy. Hydrogen Storage Above Ground The need for medium-scale surface hydrogen storage will grow with increased demand. Hydrogen storage may vary between facilities or regions, but a steady hydrogen supply from a bulk storage unit allows for more consistent piping and extraction. Hydrogen above ground can be stored in compressed or liquified hydrogen containers as hydrogen carriers or metal hydrides. The UAE already has above ground hydrogen storage. In the near term, above-ground storage is expected to remain the UAE's primary storage option as below-ground storage options are developed. Hydrogen Storage Below Ground - Salt Caverns Underground storage provides a high-volume capacity alternative to tank storage. The primary forms of underground storage include salt caverns and depleted oil fields and aquifers. The UAE is utilising carbon captured in enhanced oil recovery (EOR) to increase output from existing oil and gas fields. The UAE is home to several evaporate deposits, including the Hormuz salt of Eocambrian age, Miocene salt and the Jebel Dhanna, a breached salt dome in the Western Region of Abu Dhabi near the Ruwais Industrial hub and hydrocarbon port. At present, hydrogen storage in salt caverns is not yet technologically mature and requires significant global research and development efforts before it can become a feasible option for the long- term storage of hydrogen in the UAE. The map shows the UAE’s natural underground storage sites that can be potentially used for hydrogen. 54 . 20 Low carbon hydrogen oases and clean energy precincts These hubs and clusters will play an important part in establishing a hydrogen value chain in the UAE. The UAE will establish hydrogen oases as a practical approach to accelerating industry adoption of hydrogen, cultivating a supply chain, and enabling infrastructure. The oases will support demand generation and optimisation of development costs through co-locating production and end-use applications in clusters, removing network barriers, and providing commercial opportunities to test and validate technologies. Clusters are being adopted globally as best- practice for scaling the supply chain while minimising infrastructure costs. The hydrogen oases will consider existing and new pipelines for distribution, depleted oil wells for carbon storage, and potential connections to salt caverns for high-volume storage. The RES capacity coming online over the next few decades, as detailed in the UAE Energy Strategy 2050, poses another challenge for existing grid networks. Grid requirements for low carbon hydrogen will need to be considered for long-term hydrogen production in parallel with decarbonising the grids. Concentrations of the industry provide the most opportunity for UAE to establish and scale hydrogen oases within a short timeframe. Ruwais and KIZAD are existing industrial clusters with storage capacity that could be suitable areas for hydrogen oases. Abu Dhabi Department of Energy is pursuing clean energy clusters and hydrogen oases isolated from the broader UAE electricity system, creating micro-systems that avoid grid management problems. This accelerates and simplifies planning, given that co-location of hydrogen use, and renewable electric generation may not always be practical or technically possible. The UAE will focus collaborative efforts towards establishing the oases by ensuring a clear policy timeline, financing and allocation of resources, and transparency of information to investors and developers. 21 Action Plan The Ministry of Energy and Infrastructure is currently developing key policy levers to accelerate the UAE hydrogen economy. The UAE’s strategic framework outlines an action plan to The final elements outline how the UAE will consolidate efforts to achieve its hydrogen economy ambition by 2031 and build a sustainable hydrogen economy beyond. Although the following elements are critical in the short term becoming a top global producer of low carbon hydrogen. horizon until 2031, they also represent longer-term investment horizons and will ultimately shape the UAE’s future in meeting and exceeding 2050 and 2071 ambitions. The ten elements underpinning this framework are the enablers that the UAE stakeholders, including government, industry, and academia, will collaborate around to build the hydrogen value chain. In the market creation phase, the UAE will focus on four priority elements critical to demand generation and to scale production capacity to achieve its ambitious targets. Focus Areas Across all the ten elements listed, there will be relevant policy actions that need to be addressed. The UAE government will work with stakeholders to establish a clear governance framework and identify the necessary – Develop commercial models across the supply chain to provide stability and measures to remove barriers and provide feasible investment opportunities to accelerate the UAE’s hydrogen predictability for market players economy. Sustainable – Establish a hydrogen entity that conducts consultations, helps identify and Commercial and implement commercial models at the national scale. Economic Models Market Creation Phase – Scale up low carbon hydrogen production, including the linking of production to The elements are focused on establishing the domestic market to scale production capacity and generate higher renewable energy growth plans ICV through export of green products. Export of hydrogen and derivatives is important, but the UAE see the domestic market as the foundation to a strong hydrogen economy. Resources and – Consideration for hydrogen in the competition for resources, land, water, and Assets geological assets within the energy transition Focus Areas – Develop a clear regulatory framework for hydrogen – Identify potential pathways for developing the UAE's infrastructure, including transport, storage, high voltage transmission and oases – Provide robust policy incentives to accelerate investment and confidence – Develop required hydrogen transport systems Policy, Regulation, – Create hydrogen-associated codes and standards Enabling – Determine the potential of UAE’s geological storage and Standards – Establish a Hydrogen Certification Scheme (guarantee of origin) Infrastructure – Developing the critical export infrastructure for hydrogen – Develop a national hydrogen workforce development plan, competency framework and training needs – Provide project funding and financing to support developers in all areas of the low – Re-skill expertise in existing industries to support the hydrogen value-chain carbon hydrogen supply chain Finance and Skills and – Cultivate workforce to match demand due to industry uncertainties Investments Education – Response plan to support evolving technological changes and the corresponding need for rapid competency updates – Activities to scale up the adoption of hydrogen – Advance and expand hydrogen research and innovation efforts – Implementation of pilot scale and commercial scale projects to accelerate industry – Increase industry-led activity and involvement Industry transition to a low carbon hydrogen – Dedicate funding toward research and innovation Development and Research and – Resources and equipment adapted or changed to support industry transition – Create the relevant institution to transition innovation from the lab to Demand Activation Innovation commercialisation – Enhance institutional engagement (including government, academic, trade and – Define hydrogen's role in the UAE's Net Zero by 2050 Pathway industrial entities) – Align Health and safety authorities across the emirates on key actions to deliver – Establish demand and supply partnerships for hydrogen and its derivatives on the targets for H2 safety codes and standards Global – Develop large-scale projects that can progress the development of the supply Climate, Safety, – Deliver public awareness on low carbon hydrogen Collaboration chain and Social Drivers – Educate consumers and end-users on low carbon hydrogen 22 Policy, Regulation, and Standards Proposed way forward Focus area 2023 – 2025 2026 – 2028 2029 – 2031 Establishing policies, regulations and standards that foster A clear - UAE's policy and regulatory - Engagement with Emirates - The long-term policy and regulatory framework developed, with to support an accelerated regulatory framework in investor confidence and activate the UAE’s hydrogen market is framework for incentives to support the planning and permitting place to support transparent hydrogen development of enabling system in place that is future hydrogen economy a priority enabler. The UAE recognises the importance of elements of the hydrogen simplified for hydrogen- expansion in response to value chain related projects, including market growth having a clear regulatory framework covering all supply chain - DED has established low alignment to existing UAE environmental best practice components, from production to end-use. carbon hydrogen support committee to accelerate hydrogen projects Some significant policy directions supporting the UAE’s low carbon hydrogen development include the updates to Robust - Market mechanisms in place - Policies aligned with cross- - Regulation in place the UAE’s Energy Strategy 2050 and the UAE’s Net Zero Strategy and the launching of the Sustainable Aviation incentives to for hydrogen production border trade agreements for incentivising low carbon Fuel 2050 Roadmap, which are currently under development. accelerate (See Commercial and low carbon hydrogen-related hydrogen adoption in steel, investment and Economic models section) products aluminium, cement, and The UAE is currently working on the following relevant initiatives: confidence - Establish enablers to - Establish enablers to electricity production – Abu Dhabi Department of Energy (DoE) issued a draft low carbon hydrogen policy for stakeholder comments incentivise low carbon incentivise low carbon - Regulation in place to hydrogen adoption in steel, hydrogen adoption with support hydrogen end-use in October 2022, with anticipation for release in the coming year. The DoE’s hydrogen policy aims to provide a aluminium, cement, and sustainable aviation fuels applications for transport framework to encourage investments for producing hydrogen competitively, stimulate demand and provide heavy goods vehicles and ancillary grid services sectors such as rail and market stability. Hydrogen is designated as a strategic sector, and Hydrogen Oases and Clean Electricity - Leverage developing carbon - Market price set for heavy goods vehicles Clusters will be created to facilitate cost optimisation and economies of scale from shared infrastructure. pricing mechanisms to hydrogen oases consumers support industry transition – A low carbon Hydrogen Support Committee led by the Abu Dhabi Department of Economic Development (DED) will facilitate permitting, regulatory, economic, and financial support for hydrogen projects on a case-by- Creating - Define technical standards in - A low carbon hydrogen - Develop internationally hydrogen- production, transportation, standard in place and recognised safety standards case basis. associated storage, and end-use aligned with international for hydrogen derivatives – In 2019, Emirates Authority for Standardization and Meteorology (ESMA) completed its draft technical codes and applications standards - Establish internationally standards - Define technical standards - Licensing framework for low acceptable hydrogen safety regulations on hydrogen-fuelled vehicles, making the UAE the first country in the Middle East and Africa region for hydrogen derivates carbon hydrogen production, codes and standards to establish a hydrogen-related regulation. 55 - Set clear carbon intensity conversion into derivatives, - Updates to standards based – As the UAE’s low carbon economy continues to emerge, the UAE will continue to establish policies and definitions, thresholds, and transport, storage, trading, on new findings as the boundaries for low carbon and supply in place supply chain infrastructure regulatory frameworks, including quality and safety standards, codes, and certificates of origin, which are hydrogen continue to develop essential for developing the hydrogen economy. The policies will be developed and implemented by working closely with all stakeholders, including Federal Ministries and agencies, Emirates governments and Municipalities, and the industry. Hydrogen - Engagement with key export - An internationally recognised - Review the certification – Environment Agency Department Abu Dhabi (EAD) is exploring a cap-and-trade system to accelerate Certification markets and international Guarantee-of-Origin scheme and re-assess emissions reduction across industry in the line with the UAE Net Zero 2050 strategy 56 (Guarantees of entities to establish the certification scheme and origin scheme) required Guarantees-of- tracking system Origin certification scheme implemented that is satisfies cross- jurisdictional requirements 23 Finance and Investments Proposed way forward Focus area 2023 – 2025 2026 – 2028 2029 – 2031 Establishing appropriate financial mechanisms will ensure the Provide project - Benchmark production cost - Low-interest sustainable - Low carbon hydrogen fund UAE is internationally competitive. funding and financing to compared to the most cost- effective reference - financing allocated A National Low Carbon - programme Establish ongoing low- support - Strategic partnerships Hydrogen Fund and interest sustainable financing Providing the required finance and investments to accelerate and sustain the development of a hydrogen supply developers in all established with key Mechanism established options for low carbon chain is a priority to ensure the UAE is amongst the top global low carbon hydrogen producers. The UAE's position areas of the low financial entities hydrogen projects carbon - Revenue support guarantee as a trade and international finance hub will be leveraged to ensure finance and investments are directed to - Reduction of LCOH through - Private sector investment hydrogen supply developing significant projects and initiatives. chain cost support (to be mobilised in manufacturing determined, but potential of major supply chain The UAE continues to play a significant role in sustainable financing and investment growth through the options include electricity, elements Sustainable Finance Working Group (SFWG), in alignment with the UAE's commitment to the Paris Agreement. technology, land, and off- - Increase funds allocation for The SFWG works towards improving sustainable finance by enhancing disclosure, governance practices, and take support) new financing opportunities communication of a clear taxonomy. - A committee established as for increasing renewable a centre for all low carbon energy projects dedicated to At the emirate level, the Dubai Sustainable Finance Working Group, and the Abu Dhabi Global Market (ADGM) hydrogen financing and hydrogen production have created agendas to establish and implement sustainable frameworks. Similarly, the Government of Dubai investment activity launched the Dubai Green Fund (DGF) to fund investments in green and sustainable projects aligned with Dubai's Dedicate funding - Establish a Hydrogen - Capital grant funding Clean Energy Strategy. toward research Innovation Fund (also a programme in place and innovation policy priority) The Ministry of Industry and Advanced Technology (MoIAT) is implementing a strategy called Operation 300bn, aiming to raise the industrial sector’s contribution to GDP from AED 133 billion to AED 300 billion by 2031 57. The strategy focuses on 11 industrial sectors, including hydrogen. Additionally, the Emirates Development Bank’s 58 allocation of AED 30 billion to support priority industrial sectors over five years will be pivotal in accelerating industrial development, financing 13,500 SMEs and creating 25,000 jobs in five primary sectors. In addition, the UAE has launched the UAE Carbon Alliance with the aim of advancing decarbonization efforts and developing a carbon market ecosystem. The alliance's founding members include leading organizations such as FAB, TAQA, ACX, and Masdar, along with the UAE Independent Climate Change Accelerators (UICCA). The alliance will establish national cooperation in decarbonization, create frameworks for carbon financing, and enhance knowledge of carbon markets. It will support the transition to a green economy and help achieve net zero goals through carbon credits. The alliance plans to establish a resilient and transparent carbon market, attracting investment towards decarbonization projects and providing a market-based mechanism for corporations to accelerate their transition. The UAE Carbon Alliance will foster inclusive dialogue among stakeholders, align private and public sectors, and drive government strategies. Organizations committed to decarbonization are encouraged to join and collaborate with the alliance. The UAE will collaborate with financial institutions and regulatory bodies to establish an environment conducive to regional foreign investment activity. Bridging the cost gap will be fundamental to UAE hydrogen’s competitiveness with other fuel sources and countries. Leveraging low-cost resources, the UAE will target a competitive levelised cost of hydrogen for both sectoral demand and export. 24 Industry Development and Demand Activation Proposed way forward Focus area 2023 – 2025 2026 – 2028 2029 – 2031 A strong hydrogen economy will be demand-driven. The UAE Activities to - Establish channels of - Platform established to - Initial pilot projects scale up the communication between foster stakeholder transitioned to a commercial has established a strong local presence in steel, aluminium, adoption of regional off-takers and communication within the scale hydrogen producers to foster planned hydrogen oases chemicals and refining industries through its oil and gas relationships and ensuring market demand opportunities for sectoral meets production aspiration leadership. supply - Government engagement, including formal consultation To scale production capacity, the UAE will explore the application of low carbon hydrogen across existing industries on initiatives, challenges, and support adoption to stimulate regional demand. It is becoming clear that the opportunity from import countries and opportunities for green steel and aluminium is high. The UAE will act efficiently to secure long-term supply agreements that can Implementation - Low carbon hydrogen - Pilot oil refining projects - Low carbon hydrogen strengthen the growth of its low carbon hydrogen economy. of pilot scale partially adopted in the transition to commercial partially adopted in mobility, and commercial aluminium and steel industry scale aviation, and shipping The industrial sector will rely on hydrogen to decarbonise their supply chains in alignment with the 2050 Net Zero scale projects to through a series of pilot - Global carbon trading market through a series of pilot Strategic initiative. Key hard-to-abate sectors include refining, chemicals, aluminium and steel, and transport. accelerate projects involvement supporting projects industry - Low carbon hydrogen industry transition to low - Pilot aluminium and steel These sectors are forecasted to potentially consume 2.1 mtpa of hydrogen annually to meet 2031 net-zero targets. transition to a partially adopted in refining carbon trajectories projects transition to The application of hydrogen within these industries requires significant transition efforts and ongoing collaboration low carbon through a series of pilot commercial scale between industry, regulators, and investors to ensure a feasible transition is achieved. hydrogen projects MoIAT has announced more than 30 industrial projects valued at 6 billion dirhams ($1.63 billion). Additionally, the Resources and - Identification of key critical - Continued technology - OEMs established in the UAE's industrial sector has secured over $2.7 billion in offtake agreements, further strengthening the localization of equipment equipment needs for development and testing UAE developing resilience in products and pushing the total value of targeted products to an impressive $32 billion. Efforts to bolster the adapted or hydrogen adoption in target across the value chain to the local hydrogen supply changed to sectors enable a broader range of chain industrial sector extend beyond the project announcements. The UAE's national oil company, ADNOC, will allocate support industry applications and less - UAE as a hydrogen more than 20 billion dirhams to procure structures and metal products from domestic companies. Moreover, the transition developed technology technology export hub sector will benefit from competitive financing initiatives, including substantial contributions of 5 billion dirhams from First Abu Dhabi Bank and 1 billion dirhams from Mashreq Bank. The maturity for the industry to adopt hydrogen technology will occur in different stages. Industries ready to adopt hydrogen include UAE’s refineries, steel and aluminium, and chemicals, including fertiliser production. 25 Global Collaboration Proposed way forward Collaboration is crucial to scale low carbon hydrogen Focus area 2023 – 2025 2026 – 2028 2029 – 2031 production. Strong government-to-government and commercial Enhance - COP28 leveraged to support - Leverage global trade MoUs - UAE to establish a world- relationships are necessary to overcome the obstacles and institutional engagement international alignment to overcome current barriers by extending agreements to attract international OEMs leading innovation hub attracting international hesitation that may delay investments. (including government, including clean supply chains and certification - Provide opportunities to global institutions for in- researchers academic, trade - Membership in key hydrogen country research and The UAE will consider global trends and lessons learned to drive market growth and establish strong trade routes and industrial intergovernmental development to inform its low carbon hydrogen development decisions. Relevant collaborations will support scaling export of entities) partnerships to facilitate hydrogen and its derivatives, including ammonia, kerosene, and methanol and becoming a top global producer of information sharing on policies, codes, standards, low carbon hydrogen. and safety The UAE has signed several bilateral agreements, including Memorandums of Cooperation (MoC) and MoU’s Establish - Agreements for export of - Agreements totalling at least - Agreements totalling at least between countries, including Japan, South Korea, United States and Germany. These agreements establish demand and green products (steel, 0.1 mtpa low carbon 0.6 mtpa low carbon foundations for potential trade synergies, investment opportunities, technical and economic feasibility studies, and supply aluminium) established hydrogen trade hydrogen trade joint R&D initiatives across clean energy. partnerships for hydrogen and its The UAE is well-known for its global commitment to collaboration and investment in clean energy. Masdar, one of derivatives the world's largest and fastest-growing renewable energy companies, with its global presence in over 40 countries, Develop large- - International technology - International technology - Framework in place enabling leverages its extensive expertise in clean energy to lead the development of renewable energy projects across scale projects codes and standards codes and standards cross-border pipeline/ Africa and the world. that can assessed implemented shipping trade progress the - Opportunities assessed for - Develop three international - Framework for international Masdar’s commitment to investing in green hydrogen is crucial in the global transition to clean energy. The development of international investment low carbon hydrogen hydrogen trade and company’s interest in green hydrogen for sustainable aviation fuels has resulted in a billion-dollar strategic alliance the supply chain across the supply chain projects competitive open market in to drive the UAE hydrogen economy by developing green hydrogen electrolyser capacities in the UK, Egypt, and - One low carbon hydrogen - Framework to facilitate cross place other countries. Masdar is part of a partnership with the Abu Dhabi National Energy Company (TAQA) and project developed beyond border-trade established - Significant global portfolio of Mubadala Investment Company that aims to consolidate renewable energy and green hydrogen efforts. The financial close hydrogen projects either - Low carbon ammonia wholly UAE entity owned or partnership will have a combined committed capacity of over 23 gigawatts of renewable energy to reach over exported to international in partnership with 100GW by 2030. international partners partners The UAE Ministry of Foreign Affairs and International Cooperation (MoFAIC) launched Etihad 7. The programme is aimed at public and private sector funding dedicated to financing renewable energy projects in Africa to provide clean electricity for 100 million people by 2035. The UAE's efforts to invest in clean energy and hydrogen globally are crucial to the growth of the hydrogen market. By leading the development of renewable energy projects and green hydrogen capacity, the UAE is helping to unlock the potential of hydrogen and bring it to the forefront of its energy mix. The UAE is also providing much- needed funding and support for clean energy projects, creating a favourable environment for the growth of the hydrogen economy. Additionally, its partnerships with leading energy companies and institutions drive innovation and promote collaboration, which is critical for developing the hydrogen market. The UAE's efforts to invest in clean energy and hydrogen are essential for developing the hydrogen market and transitioning to a cleaner, more sustainable energy future. The UAE’s commitment to developing its low carbon hydrogen economy through global collaboration signals a strong message on its transition to clean energy. 26 Sustainable Commercial and Economic Models Proposed way forward Sustainable commercial and economic models are needed to Focus area 2023 – 2025 2026 – 2028 2029 – 2031 stimulate and sustain the growth of the hydrogen market in the Develop - Commercial Model - Appropriate commercial - Competitive open market in UAE. They enhance confidence for investment into low-maturity commercial models across assessment completed, and procurement policy defined mechanism (model) identified and implemented to enable place, including a path to subsidy-free production and technology and supply chains. the supply chain to provide Hydrogen Production at a commercial scale for sectoral use stability and use and exports These models draw the flow of capital to previously non-profitable investments to encourage project development predictability for - Appropriate commercial across the supply chain. Without sustainable models, market failure poses a significant risk to rapidly scaling the market players model for Hydrogen storage supply chain, incentivising actors to hold on to emission-intensive products and technologies. and network infrastructure defined and in place The UAE will explore standard models to design a UAE-based hydrogen economic model that supports the Establish a - Design a best-fit governance - Governance structure - Governance structure hydrogen supply chain's ongoing development. Some of the different models that will be considered are listed hydrogen entity model that supports the established and accelerated manages ongoing hydrogen below: that conducts UAE's development of a actions identified in the economy development consultations, hydrogen economy strategy – Contracts for Difference (CfD): CfDs could help bridge the cost gap between low carbon hydrogen and helps identify - Governance bodies establish alternative fuels of greater carbon intensity. For example, natural gas could help encourage hydrogen and implement smaller working groups to production and end-use growth in the UAE as it secures a specific price for each unit sold or purchased, commercial investigate key supply chain encouraging end users to purchase hydrogen for a guaranteed price. Similar models are employed across models at the components national scale. renewable energy globally. – Regulated Asset Base (RAB): RABs incentivise private investment into public projects, helping guarantee developers' payback. Hydrogen is treated as a national utility, such as the gas, electricity, and water networks, helping to create the lowest capital cost basis for projects to reach construction. – Hydrogen Purchase Agreements (HPA): HPAs are a market-driven model that could link supply and demand. HPA's would work similarly to PPA's, where an HPA between a green hydrogen producer and the end user on a specific sale price for an amount of hydrogen used over an agreed timeframe. – Other auction-based mechanisms to promote a timely and effective power to synthetic fuels (PtX) market ramp-up on an industrial scale like the H2Global mechanism. Another key aspect that will be considered is the respective roles of public and private financing through instruments such as Public Private Partnerships (PPP). These models are required to be established to ensure effective and consistent procurement within the nascent industry. This will also drive appropriate risk allocation within the hydrogen projects in development. An effective combination of different models will ensure the long-term sustainability of the hydrogen market through scaling and maturity. 27 Resources and Assets Proposed way forward The UAE will leverage its strong natural resources and assets to accelerate its hydrogen economy and produce globally Focus area 2023 – 2025 2026 – 2028 2029 – 2031 Scale up low - CCUS master plan outlining - 7 low carbon hydrogen - 5.1 mtpa of carbon storage competitive hydrogen at low levelised costs. The energy carbon hydrogen forecast storage capacity for production plants operating capacity developed for blue production, blue hydrogen and carbon hydrogen harnessed from the UAE’s abundant sunshine and gas reserves including the capture requirements for - Roadmap outlining approach to onshoring locally needed - UAE a top global producer of linking of synthetic fuels will support reaching net zero by 2050 and help transition the production to critical materials and equipment - low carbon hydrogen Critical hydrogen supply renewable UAE's energy economy. energy growth chain manufacturers located in the UAE plans Despite existing strengths in renewable sources, the UAE will need to overcome several challenges in advancing the low carbon hydrogen supply chain. One global challenge is the high demand for electrolysers essential for Consideration - Renewable energy identified - 40 km2 of land made - Up to 94 km2 of land made green hydrogen production. Integration of large capacity RES into the existing grid is another global challenge due for hydrogen in for hydrogen production available for low carbon available for RES to its uncertainty Current planned renewable capacity focuses on grid decarbonisation as a priority, and with the the competition - Water master plan for hydrogen production and - 15.4 GW of RES capacity for resources, electrolytic hydrogen to required RES developed for hydrogen grid nearing capacity, an additional allocation of RES for hydrogen will need to be managed. land, water, and account for additional water - 4 GW of RES capacity - One hydrogen oasis in With electricity feedstock as a significant driver of costs in hydrogen production today, appropriate allowances will geological requirements developed for hydrogen assets within the development be required to account for the scale of energy capacity needed. Besides dedicated (off-grid) renewables for energy transition - Potential sites identified for - Discussion paper on hydrogen production, hydrogen will need to be a key consideration for major solar energy projects connected to the the development of hydrogen potential approaches to oases increase electrolyser grid. capacity (include energy With plans for increasing nuclear energy levels, the long-term potential for more efficient clean hydrogen production storage and GCC transmission corridors) from high-temperature electrolysis also needs to be realised. As natural gas is expected to be a key part of the future energy system, with 50% of the energy expected from natural gas by 2050 in the Net-Zero pathway, the CCUS infrastructure will be linked to hydrogen, and non-hydrogen projects will need to be developed continuously over time. Given that water will be a critical resource for electrolytic hydrogen production, with 9kg needed to produce 1kg of hydrogen, the allocation of water to hydrogen projects requires attention when planning for the geographic location of projects. The UAE has limited water resources due to its arid climate and high population growth. Though desalination is an energy-intensive process, it is estimated to add no more than USD 0.02 to the cost of electrolytic hydrogen production per kg 59. The UAE is taking a cluster-based approach to establishing a hydrogen supply chain and mitigating the scaling and bottleneck risks. Clean energy clusters will be developed for the co-location of energy users, with the potential for dedicated sub-grids to manage new RES coming online with limited connection to the grid for electricity generation at the lowest cost possible. ADNOC, John Cockerill Hydrogen, and Strata Manufacturing have formed a strategic collaboration to produce electrolysers in the UAE for domestic and international markets. Supported by MoIAT, this agreement aims to boost the UAE's green hydrogen economy, promote local industry, and attract investment through in-country manufacturing. 60 These are the key steps the UAE is taking to establish a supply chain to manage resources efficiently and in the least cost approach. 28 Enabling Infrastructure Proposed way forward Large-scale deployment of hydrogen will require a well- Focus area 2023 – 2025 2026 – 2028 2029 – 2031 designed and cost-efficient system for hydrogen storage, Identify potential - The infrastructure plan for - Energy infrastructure in - Enabling infrastructure is distribution, and transmission (transport), connecting the supply pathways for developing the the UAE including: • Prospective hydrogen place for hydrogen oases, including established established and growing in line with the market sources to the demand centers to establish a liquid market. UAE's infrastructure, oases network trading (micro-grid networks) requirements including • Micro-grid and sub- The UAE will invest in and establish the necessary infrastructure to support hydrogen production, storage, transport, system plan in place to storage, high support dedicated RES distribution, and application for regional and international markets. ADNOC and Masdar spearhead this effort with transmission to hydrogen voltage ambitious targets and clear investment agendas within the UAE and globally. Leveraging existing resources and transmission oases capabilities, the UAE is well-positioned to scale quickly and efficiently to meet global and sectoral hydrogen and oases • Grid capacity demand. requirements A challenge for the UAE is determining the optimal geographical distribution of production and consumption sites to • Hydrogen pipeline Develop required - A network that connects - New hydrogen pipelines in backbone including Right ensure the required supply chain infrastructure evolves efficiently. Greater cooperation is needed amongst hydrogen production sites to ports place of Way hydrogen stakeholders to design this system based on factors such as sectoral demand evolution, size, and type of transport - Infrastructure repurposed - CCUS infrastructure in systems • Road transport where applicable operation for hydrogen technologies for production, the location of infrastructure relative to resources such as renewables and carbon • CCUS dioxide storage sites for producing low carbon hydrogen, and evolution of the existing natural gas and electricity • Storage requirements networks, amongst other considerations. • Export infrastructure, While in the next decade, the infrastructure is expected to develop in a distributed manner, with key demand and including ports supply centres, the architecture of this network at the national level will depend on the progress made in adopting • Feasibility of sub- hydrogen in the UAE energy system. With increased renewables and production volumes of hydrogen (for sectoral Determine the systems assessed - Construction of underground - Trial of underground use and exports), the connection of electrolysers to the electricity grid will be increasingly important. Any planning potential of supporting energy storage facilities underway hydrogen storage UAE’s geological transmission to proposed work relating to the grid connection of electrolysers will need to be linked to plans for decarbonising the grid such storage hydrogen hubs that the hydrogen produced meets the carbon intensity standards of importing nations. One strategic advantage for the UAE is the existing carbon capture, utilisation, and storage (CCUS) infrastructure. While the existing CCUS application is mainly for enhanced oil recovery and is an area of continued advancement, the CCUS capability potentially positions the UAE as a leading supplier of blue hydrogen. Developing the - Existing port facilities - Hydrogen export The UAE also has salt structures that could potentially be used for long-term underground hydrogen storage. The critical export upgraded to meet hydrogen infrastructure growth in the salt structures are concentrated offshore, with six potential locations lying a few kilometres off the shorelines into infrastructure for export demand and comply export market the Arabian Gulf. hydrogen with international safety standards The theoretical capacity could be anywhere between 1 mtpa to 3.8 mtpa (36.4 to 127.7 TWh). The capacity of the most significant salt formation, “Delma,” represents as much as one-quarter to one-third of the capacity. The viability of using these and their actual capacities depend on the formation and the cavern type. Investigations regarding actual capacity need to start soon to utilise such enormous potential in the medium-term future. 29 Skills and Education Proposed way forward The UAE is dedicated to becoming a leading player in the Focus area 2023 – 2025 2026 – 2028 2029 – 2031 global hydrogen market. The government is implementing Develop a - Collaboration with industry - Hydrogen skills roadmap - Hydrogen skills roadmap initiatives to upskill its workforce, attract international hydrogen national hydrogen and educational institutions established to identify and - strategy developed Facilitate private sector - implemented Expand collaboration with experts, and improve education and skills in the hydrogen workforce development assess skills needs investment in hydrogen skills education and training industry and educational institutions to continue to sector. plan, competency identify and address emerging hydrogen skills framework and education and competency To upskill its existing oil and gas workforce, the government offers training programmes that teach the latest training needs needs technologies and processes in the hydrogen economy, such as hydrogen production, storage, transportation, and Re-skill - Oil and gas sector - Adopt incremental upskilling - Revise courses to reflect safety. Khalifa University also offers independent hydrogen programmes to build a professional network of skilled expertise in collaboration established to to complement existing technology changes and individuals. existing upskill oil and gas workforce education and training implementation in the UAE industries to to support the hydrogen - Develop industry-informed With its stable economy and safe environment, the UAE attracts hydrogen experts worldwide. The government support the value chain hydrogen certifications or provides a favourable environment for these experts by offering incentives for investment and supporting research hydrogen value- accreditations to address and development. chain specialised training needs The UAE recognises the importance of having a well-educated and skilled workforce for a thriving hydrogen Cultivate - Review of existing - Scholarship-based early- - Promote job creation economy. The government is investing in research and development, offering hydrogen-focused training workforce to curriculum in the UAE for career educational and opportunities through skills programmes, and supporting the creation of hydrogen-related curriculums in universities and colleges. match demand hydrogen to identify gaps in technical training exchange development support for in- due to industry existing education programmes with country value creation for Clear and regular communication between academic institutions and industry ensures the workforce is upskilled uncertainties international partners hydrogen-related appropriately. This collaboration allows academic institutions to understand the industry's needs and the industry to established manufacturing access a well-educated and skilled workforce. Response plan - UAE's National - Establish a framework for a - Upgrade piloting and training to support Qualifications Centre should specialised hydrogen facilities and expand the The UAE is also committed to creating sustainable job opportunities for its citizens in the industrial sector. Through evolving add hydrogen skills to its technical education and training network locally in the the Industrialist Program, developed in partnership with Nafis and the Ministry of Human Resources and technological framework of national vocational skills institution UAE Emiratization, the country aims to generate 5,000 such opportunities. changes and the qualifications corresponding The Ministry of Climate Change and Environment is working with the Ministry of Education to integrate renewable need for rapid energy and sustainable development into the national education system. Similarly, the Ministry of Energy and competency Infrastructure aims to collaborate with the Ministry of Education on hydrogen learning in school curriculums to updates educate youths on the basics of hydrogen to encourage an increase in university enrolment and workforce growth in hydrogen-related fields. The Ministry of Education is also developing a hydrogen tool kit for schools and universities to expand knowledge of the sector amongst both teachers and students. 30 Research and Innovation Proposed way forward The success of the hydrogen economy and the value captured Focus area 2023 – 2025 2026 – 2028 2029 – 2031 by the UAE hinges on its ability to innovate at the national level. Advance and - Increased contribution, - Demonstration projects - Recognised as a global expand hydrogen leveraging existing showcasing technologies centre of research While some hydrogen technologies are ready for scale-up, research and development activities by universities and research and membership of Mission in end-use sectors starting excellence for hydrogen private and public sector entities will remain critical for driving down costs and increasing competitiveness. innovation efforts Innovation at technology readiness technologies levels (TRL) of 5+ - Demonstration projects The United Arab Emirates boasts a robust and cutting-edge research and innovation ecosystem, as evidenced by with technologies its top ranking in the 2021 Global Innovation Index within the Middle East and North African region and among the reaching TRL 8 top 33 globally 61. Increase industry- - Establish partnerships - Industry-led technology The UAE has invested AED 14 billion annually in innovation, with AED 7 billion explicitly directed toward research led activity and with leading hydrogen development & testing involvement technology companies across the value chain and development 62. This investment is reflected in the UAE's vast network of incubators and accelerators to and research institutions provide training, financing, and expert support for product development. This strong foundation needs to be leveraged to support R&D efforts in the hydrogen sector. DEWA’s Innovation Centre at the Mohammed bin Rashid Create the relevant - Establish a Hydrogen - Programmes to support institution to Innovation Hub focussed and accelerate next- Al Maktoum Solar Park is a global incubator exploring hydrogen and renewable energy technologies critical to transition on key R&D priorities, with generation technology hydrogen in the UAE. 63 innovation from the the function to bridge any development, inclusive of lab to gaps between academia, industry, power, transport Robust programmes are necessary for the coming decade to ensure relevant technologies achieve commercial commercialisation industry, and research scale by 2031. The existing programmes, such as the Research and Innovation Center on CO2 and H2 (RICH Centre) at Khalifa University, focus on advancing technologies and processes across the hydrogen supply chain, from production, transportation, and storage to end-uses. These programmes will be expanded across the UAE's academic and industrial entities to increase the rate of innovation. The allocation of funding mechanisms to priority challenges, including technical efficiency, technology lifetime, materials development, system optimisation and innovations in all supply chains, will reduce bottlenecks and scalability. In addition to government funding, a policy framework can mobilise the private sector to invest in next-generation technologies, such as using hydrogen for high-grade heat in industrial processes, shipping, synthetic fuels, and hydrogen in gas turbines for power production. In the near-term more demonstration projects are needed to ensure that these technologies reach commercialisation early this decade and unlock the full potential of hydrogen demand. Pertinent demonstration projects include using hydrogen in the Direct Reduced Iron (DRI) process for iron- and steelmaking; producing ammonia and methanol using electrolytic hydrogen from renewable energy; using hydrogen in heavy-duty transport; and using ammonia in shipping. The UAE is actively exploring various technologies across the hydrogen value chain and seeking to advance their development. These technologies include synthetic fuels, direct air capture, turquoise hydrogen, and blockchain, among others. ADNOC and Siemens are exploring pilot blockchain technology for certifying the carbon intensity of a range of products. The UAE's ambition is to increase the maturity of these technologies establish itself as a leader in the development, manufacturing and export of advanced hydrogen technologies. 31 Climate, Safety, and Social Drivers Proposed way forward The UAE's ambitions to tackle climate change are at the heart Focus area 2023 – 2025 2026 – 2028 2029 – 2031 of developing a hydrogen economy. Define hydrogen's - Define hydrogen’s Specific hydrogen offtake targets by industrial sector to achieve role in the UAE's contribution within the Net Zero The UAE's National Net Zero by 2050 Pathway targets interim carbon reduction of 18% and 60% by 2030 and Net Zero by 2050 UAE's Net Zero by 2050 2040, respectively, and becoming net zero by 2050. Low carbon hydrogen is critical in achieving these ambitions. Pathway Pathway The UAE has a significant carbon-intensive industrial and transport presence. Clear articulation of hydrogen’s role Align Health and - Hydrogen and derivatives - Health and safety codes - Continuously update and in reducing these emissions is required to be communicated and embedded in future planning and development. safety authorities specific health and safety and standards reviewed to refine hydrogen safety across the emirates codes and standards in ensure alignment with codes and standards Although the UAE is home to some global industry leaders, it is also home to multiple communities and small and on key actions to place across the hydrogen international best practice based on lessons learned medium enterprises. Acceptance, adoption, and advocacy of low carbon technologies are critical to the UAE deliver on the supply chain and technological economy and will be a significant factor in the success of the hydrogen economy. Education on hydrogen, its targets for H2 advancements, while applications and safety across the supply chain will need to be addressed. Campaigns, platforms, and toolkits will safety codes and fostering collaboration standards among authorities to share be made available to support communities and businesses throughout this transition. best practices The UAE has developed social impact contracting guidelines focusing on increasing social and economic value Deliver public - A national campaign - Conduct training - Widespread awareness of outcomes in developing a net-zero society. These guidelines set standards for public-private partnerships, awareness on low outlining the role of workshops and seminars the potential for hydrogen emphasising transparency, stakeholder engagement, and clear targets and performance indicators. The Social carbon hydrogen hydrogen in the race to for health and safety abate global carbon authorities across the Impact Contracting guidelines could be applied in developing hydrogen projects in the following ways. emissions emirates to ensure a – Public-private partnerships: The guidelines encourage partnerships between the government and private - Launch marketing consistent understanding campaigns to disseminate and implementation of sector to develop hydrogen projects. This allows for the sharing of resources and expertise to achieve educational content on low hydrogen safety protocols common goals. carbon hydrogen through – Clear targets and performance indicators: The guidelines require the establishment of clear targets and various channels performance indicators for each project. This would ensure that the impact of the hydrogen projects is Educate - Create informational - Platform developed for - Toolkit available for SMEs measurable, and that progress can be tracked. consumers and materials and resources engagement with small to to navigate hydrogen – Monitoring and evaluation: The guidelines set standards for monitoring and evaluating projects to ensure that end-users on low for consumers and end- medium enterprises adoption (costs, benefits, carbon hydrogen users, highlighting the (SMEs) on potential climate mitigation, safety, they deliver the intended social impact and identify any improvement areas. advantages and practical benefits on the adoption of and technology) – Transparency and stakeholder engagement: The guidelines emphasise the importance of transparency and applications of low carbon hydrogen stakeholder engagement, which could be applied to developing hydrogen projects by ensuring that all hydrogen in their daily lives stakeholders are informed and involved in the decision-making process. Using Social Impact Contracting guidelines in hydrogen project development, the UAE can focus on sustainable, accountable projects and deliver the intended social impact while generating financial returns. 32 Working Groups Making it real The Working Groups will comprise five layers of expert focus groups in Production, Demand, Safety, Standards and Certification, Policy and Regulation, and Research and Development. The Working Groups will collaborate with the A well-defined governance structure will strengthen the control and existing groups, such as the National Hydrogen Technical Committee, the Abu Dhabi Hydrogen Alliance, and the Hydrogen leadership Initiative, on existing and new priorities as the market develops. track implementation of strategic goals and actions outlined in the These working groups will actively engage stakeholders in the community to educate and collect insights. UAE’s National Hydrogen Strategy. The governance structure will Coordination Office comprise four layers, the Federal Hydrogen Committee, the Hydrogen Strategy Advisory Council, the Working Groups, and the Coordination The Ministry of Energy and Infrastructure will act as the Coordination Office to facilitate and coordinate the activities of the National Hydrogen Committee, the Hydrogen Strategy Advisory Council, and the Working Groups. The Office. coordination office will be responsible for tracking and reporting activities regarding the actions and progress of recommendations of the National Hydrogen Strategy. Terms of Reference will be established to define the detailed Federal Hydrogen Committee organisation, including structure memberships, objectives, priorities, and meeting schedules of the Hydrogen Strategy Advisory Council and the Working Groups. The Federal Hydrogen Committee, chaired by the Undersecretary of the Ministry of Energy and Infrastructure, will be responsible for the overall implementation of the strategic objectives by facilitating cohesive support on required Cabinet decisions relating to policy, regulatory, fiscal, and non-fiscal interventions. The Committee will include Undersecretaries of key government ministries assigned and responsible for monitoring and updating the Proposed collaboration model performance of each of the ten elements of the hydrogen strategy. – The Ministry of Energy and Infrastructure will act on recommendations and facilitate decisions regarding Policies, Regulations, Standards, Resources & Assets, Global Collaboration and Enabling Infrastructure. – The Ministry of Education will be responsible for acting on recommendations and facilitating decisions related to Skills and Education. – The Emirates Research and Development Council will be responsible for acting on recommendations and facilitating decisions related to Research & Innovation. – The Ministry of Finance will act on recommendations and decisions regarding Finance & Investments. – The Ministry of Industry and Advanced technology will act on recommendations and decisions related to Industry Development and Demand Activation. – The Ministry of Climate Change and Environment will act on recommendations and decisions on Climate, Safety, and Social Drivers. – The Ministry of Economy will be responsible for recommendations and decisions on Sustainable, Commercial and Economic Models. Hydrogen Strategy Advisory Council The Hydrogen Strategy Advisory Council will include senior leaders of major hydrogen stakeholders who will be responsible for providing recommendations to the Federal Hydrogen Committee. The Council will play a crucial role in engaging with the Federal Hydrogen Committee towards realising the UAE’s hydrogen ambition. The Hydrogen Strategy Advisory Council will: – Collaborate to identify, inform, and promote actions for enabling the production, transmission, storage, and end of low carbon hydrogen across different sectors to accelerate the UAE’s sectoral demands and export needs. – Oversee the activities of the Working Groups. The council will consist of stakeholders from relevant Emirates and organisations that play a significant role in the hydrogen transition. 33 Appendix A References 34 1 37 IEA. 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