Dii Desert Energy, Roland Berger to explore localizing H2 value chain in GCC region

Dii Desert Energy and Roland Berger joined forces to accelerate the energy transition in GCC countries with a new study on the potential of localizing the hydrogen value chain and job creation opportunities.

The lowest-cost solar and wind energy globally make the GCC region potentially one of the most competitive for hydrogen production. A recent tender in Saudi Arabia was awarded for a price of USD 0.0104/kWh. Taking advantage of the Oil & Gas economy, significant funding is available through sovereign funds as well as international investors. Furthermore, the region has a proven track-record in building and operating export infrastructure and it has a central location to future large energy demand markets, such as the European and East-Asian markets. Lastly, the region highly qualified workforce in the oil& gas sector also represents a major opportunity for the development of the hydrogen economy in the region. In addition to the export market, GCC countries could cater for their regional demand. Key findings of the joint paper include:

• Long term renewable energy deployment of up to 1,000 GW, with up to 500 GW electrolyzer capacity, leading to the production of approximately 100m MT of green hydrogen.
• Annual revenues from green hydrogen in GCC could grow up to USD $200 B by 2050.
• High job creation potential across different parts of the value chain: Up to 1 million jobs by 2050.
• Different projects under development mark the start of a big movement with countries like Saudi Arabia e.g. planning to become the world’s largest exporter of green hydrogen.
• International experiences from hydrogen valleys show that this concept could be a key enabler in creating local hydrogen economies.
• GCC countries should address four key enablers to unlock the green hydrogen potential:

1. Set realistic and quantified targets for their strategies with a comprehensive and integrated approach, as well as define a governance body to coordinate and oversee the development of the hydrogen ecosystem.
2. Building hydrogen valleys, combing green hydrogen production, storage, distribution and end-use in one geographical area. 
3. Engaging in international and technology partnerships. 
4. Enhancing capacity building programs to prepare the qualified work force across its wider value chain.  

"Green hydrogen has great potential not just as a fuel of the future, but as the foundation of an industry requiring new technology and a new generation of skilled employees," Mohamed Jameel Al Ramahi, the CEO of Masdar, said. "The demonstrator plant we are building in Masdar City with our partners will go a long way to proving the commercial viability of green hydrogen.”