Dubai: Hydrogen will become even more viable as an alternative fuel amid a surge in oil and gas prices, according to Suhail Al Mazrouei, UAE’s Minister of Energy and Infrastructure.
“The differential cost between green hydrogen and natural gas is becoming less, and this is a golden opportunity for us to create that business case,” said Al Mazrouei during a Siemens Energy organised event.
The UAE, which has one of the world’s largest oil reserves, plans to reach the goal of Net Zero carbon emissions by 2050. A big part of the plan is exploring the potential of hydrogen, a zero-carbon fuel, that has spiked in popularity. Last year, ADNOC, along with Mubadala and ADQ, formed the Abu Dhabi Hydrogen Alliance, which seeks to establish Abu Dhabi as a trusted leader of low-carbon green and blue hydrogen in emerging international markets.
The minister said that UAE must take a ‘multifaceted’ approach when it comes to meeting its emissions goals. “We need to reduce our consumption as a country or as individuals, (and) we need to diversify our energy mix and diversify quickly toward cleaner forms of energy.”
He also called for further investment in technology to build the scale required to make hydrogen feasible. “This is not happening at the speed we aspire for and it would require us to collaborate more with the government and the private sectors.”
Despite a recent dip, oil prices still gained more than 50 per cent in the last 12 months.
The differential cost between green hydrogen and natural gas is becoming less, and this is a golden opportunity for us to create that business case