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The Gulf’s biggest green bets concern hydrogen. If it is made using renewables as opposed to natural gas, hydrogen is a clean fuel. Investments in the needed infrastructure are proliferating the world over, from Gujarat to Texas. In 2021 the uae inaugurated its region’s first such “green hydrogen” plant. acwa Power, a Saudi utility, has almost completed financing for a $5bn green-hydrogen project. Oman, whose oil reserves are smaller and costlier to exploit than those of its bigger neighbours, is talking of a $30bn investment in what could be the world’s largest hydrogen plant. It has launched a state-owned hydrogen entity to offer green-hydrogen projects concessions in its special economic zones.
The Saudis and Emiratis are also looking abroad. Masdar is investing in a $10bn hydrogen venture in Egypt; developing 4gw of green-hydrogen and renewables projects in Azerbaijan; and has invested in a firm working on green hydrogen in northern England. acwa Power is eyeing multibillion-dollar green-hydrogen projects in Egypt, South Africa and Thailand. By 2030 both the uae and Saudi Arabia want to control a quarter or more of the global export market for clean hydrogen.
As the Economist suggests, this is massive investments for a future beyond oil & gas.
