[IMPACT] Charting the Next Era of MENA Hydrogen: Race to Global Top
Time: 13:00-15:00 Dubai Time, Oct 24, 2024
Format: Digital Conference
The Oct 24 "Impact Webinar: Charting the Next Era of MENA Hydrogen – Race to the Global Top" convened industry leaders to examine the state and outlook of MENA's hydrogen sector. Hosted by Leader Associates IMPACT, the event highlighted perspectives from experts, including Ms. Claude Mourey of Wood Mackenzie, Mr. Siddharth Malik of Vulcan Green Energy, Mr. Nicolas Poirot of Air Liquide, Ms. Pauline Raabe of H2Global Stiftung, and Mr. Ali Zerouali of HIF Global. Speakers emphasized strategic focus, capital efficiency, and cross-sector alliances as critical for establishing MENA’s role in the global hydrogen economy.
Global Hydrogen Market Overview: Balancing Growth and Market Maturity
The global hydrogen sector is advancing rapidly, with growing interest in low-carbon hydrogen. Yet, despite the rise in announced capacities, a limited number of projects have reached Final Investment Decision (FID). This cautious approach reflects market evolution, as companies focus on high-demand and high-potential projects. Major markets like Europe and the U.S. Gulf Coast rely heavily on subsidies, while green hydrogen projects face scaling and economic challenges that may delay deployment until post-2030. Deal flow remains lower than anticipated, underscoring a shift toward strategic, manageable growth and highlighting the importance of targeting captive demand and specific sectors.
MENA Market Overview: Potential Amid Strategic Challenges
With 102 hydrogen projects announced, MENA shows considerable promise for hydrogen production. Yet, industry experts predict only a third of this capacity will be realized, citing barriers in off-take agreements, financing, and infrastructure. Egypt and Morocco are poised to lead, given strong renewable resources and close proximity to Europe. National Oil Companies (NOCs) like Saudi Aramco and ADNOC have ambitious targets exceeding their current capacities. Success in these goals depends on aligning new projects with existing energy portfolios and reducing production costs, with Chinese electrolyzers offering potential savings of up to 45%.
In terms of applications, MENA projects are focused primarily on hydrogen and ammonia, with smaller efforts aimed at e-fuels and methanol production. The region’s potential as an export hub hinges on its geographic proximity to high-demand markets and cost-competitive production.
Speaker Insights: Key Themes and Strategic Recommendations
1. Claude Mourey (Wood Mackenzie): Focus on Long-Term Demand Centers
Ms. Claude Mourey from Wood Mackenzie opened by emphasizing that MENA’s path forward hinges on identifying resilient demand centers and focusing efforts where growth aligns with sustained demand. In particular, sectors like heavy industry and refining present opportunities for MENA to build projects with secure offtake agreements, maximizing geographic advantages and competitive production costs. Her insights indicate a recalibration from ambitious volume targets toward achievable, stable outputs supported by strong market foundations.
2. Siddharth Malik (Vulcan Green Energy): Green Steel as a Promosing Decarbonization Pathway
Expanding on sector-specific applications, Mr. Siddharth Malik of Vulcan Green Energy spotlighted green steel as a promising avenue, with hydrogen offering a decarbonization solution that could drive MENA’s impact in heavy industries. By focusing on green steel, MENA could achieve emissions reductions in hard-to-abate sectors, provided that financial incentives and policy support address cost disparities between green hydrogen and traditional energy sources. Malik’s perspective highlights green steel as a way for MENA to meet decarbonization targets while addressing industry-specific needs.
3. Nicolas Poirot (Air Liquide): Creating an Ecosystem for Hydrogen Mobility
Mr. Nicolas Poirot from Air Liquide shifted focus to mobility, proposing hydrogen’s role in transportation. While MENA’s existing infrastructure supports a potential regional hydrogen mobility hub, Poirot noted that achieving commercial success in this sector will require ecosystem-wide integration, extending from production to infrastructure and fleet adoption. His comments underscored that hydrogen mobility is best pursued as part of a broader decarbonization strategy, demanding cross-sector collaboration to optimize both investment and regional impact.
4. Pauline Raabe (H2Global): Strengthening Alliances for Market Stability
Ms. Pauline Raabe of H2Global Stiftung stressed the importance of international partnerships to stabilize MENA’s market. She highlighted alliances with European markets as crucial for encouraging private investment and securing demand. By fostering cross-regional alliances, MENA can access vital market transparency, certifications, and risk-sharing models, thereby attracting sustained capital for large-scale projects and ensuring project viability over time.
5. Ali Zerouali (HIF Global): Expanding into E-Fuels for Export
Finally, Mr. Ali Zerouali of HIF Global recommended that MENA expand its scope to include e-fuels, such as synthetic gasoline and methanol, which align with long-term global trends in sustainable fuel demand. By broadening its hydrogen applications, MENA can position itself as a central supplier in the synthetic fuel market, leveraging its renewable resources and export proximity to cater to evolving international needs.
Insights Brought to You by:
Nicolas Poirot
CEO Africa Middle-East & India
Air Liquide
Ali Zerouali
Chief Development Officer
HIF Global
Claude Mourey
Head of Hydrogen & Low carbon fuels – EMEA
Wood Mackenzie
Siddharth Malik
Chief Executive Officer
Vulcan Green Energy
Pauline Raabe
Project Manager Outreach
H2Global Stiftung
More speaker to be updated...
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Conclusion
Together, these insights paint a cohesive strategy for MENA’s hydrogen market. Through focused sector engagement, international partnerships, and diversification into complementary applications like e-fuels, MENA can secure a competitive position in the global hydrogen economy.