UAE drives bold shift to post-oil sustainability

“The backbone of any improvement of governance, its development as well as its protection from any form of wastage or excessiveness, is a mechanism to place laws under the microscope of revision and modernisation until they resonate in tune with the methodological development and new administrative technologies,” stated Sheikh Khalifa bin Zayed Al Nahyan, the former President of the United Arab Emirates (UAE).

With this ideology at its core, the Emirates has become synonymous with modernisation and sustainability. By holding a vision of becoming a global hub for a green economy, it strives to increase its share of clean energy to 50 per cent by mid-century.

While planning to achieve the target by driving decarbonisation and integrating workable energy across all sectors, the nation is rapidly expanding its capacity, operating three nuclear power reactors that provide energy to its grid. It houses three of the largest and low-cost solar plants in the world.

The country has invested in various renewable energy projects, including the Shams 1 solar thermal plant, one of the largest in the world, the well-planned Masdar City, one of the most sustainable cities in the world and the Mohammed bin Rashid Al Maktoum Solar Park, planned as the largest single-site installation.

Leading from the front

UAE’s leadership is one of the essential elements that can make a significant mark in achieving sustainability goals.

President His Highness Sheikh Mohamed bin Zayed Al Nahyan is proactive on the development agenda and regulates climate change policies dynamically.

After assuming the top position in 2022, one of his first decisions was the pledge to invest an additional $50 billion to scale up climate action.

The UAE devised a robust plan to chart a green ecological future. Though blessed with the world’s seventh-largest oil and natural gas reserves, it has taken vigorous steps to diversify its energy and keep it in tune with advancement.

Over 70 per cent of its economy is non-oil based, built on a lengthy record of accomplishments spanning three decades of environmental stewardship. Even though it contributes less than 0.6 per cent of global emissions, the Emirates is solemn as a climate action leader, embarking on a journey to reduce emissions globally.

Meticulous in lowering carbon impact, it is the first in the region to deploy industrial-scale carbon capture, utilisation, and storage technology.

The nation’s leadership hopes that future generations can grow and prosper in a sustainable world.

Green hydrogen

The UAE produces green hydrogen, the most environmentally friendly and versatile energy carrier, at the Mohammed bin Rashid Al Maktoum Solar Park. It does not emit carbon or other pollutants with purposes including electricity generation, transportation and industrial processes.

However, as fuel, it faces several challenges and barriers, such as high production costs, lack of infrastructure, policy uncertainty and safety issues. That’s because most of the hydrogen produced comes from fossil fuels such as natural gas and coal, which emit greenhouse gases (GHGs) and contribute to climate change.

Therefore, hydrogen is not a clean fuel if manufactured without the help of renewable energy. Keeping this in mind, many countries are investing in it as a potential solution to reduce their dependence on fossil fuels and achieve their net-zero emission targets.

The Gulf countries are among them, as they have abundant solar resources that can produce green hydrogen through water electrolysis.

Expensive proposition

One of the stumbling blocks for green hydrogen has been the cost, partly because of the massive energy required.

According to the Wood Mackenzie research, as renewables and electrolysers become cheaper and fossil fuel prices rise, the cost will fall to 64 per cent by 2030.

Falko Ueckerdt, a senior scientist at the Potsdam Institute for Climate Impact Research stated, “Most green hydrogen products will not be competitive for at least another decade.”

Meanwhile, scientists claim that Gulf and other oil-producing countries should be aware of the limitations and risks of relying too much on hydrogen as an alternative to fossil fuels which are finite resources and will eventually run out.

According to estimates, oil, gas, and coal will be exhausted by 2072, 2075, and 2136, respectively, depending on consumption patterns and the discovery of new reserves.

Hence, the world needs to prepare for a post-fossil fuel era, as hydrogen is not a primary energy source, but an energy carrier, produced from other sources. It is not always efficient or optimal to convert renewable energy to hydrogen and then use it as a fuel; if possible, direct usage is better, such as in electric vehicles or grid-connected applications.

Hydrogen must be expended as a complement to electrification, not as a substitute. It needs to be prioritised where direct electrification is not possible or practical, such as in heavy industry, long-distance transport, and seasonal energy storage.

Juxtaposing scenario

Even though green hydrogen offers a solution to the climate crisis, most hydrogen produced is blue, which is two to three times cheaper.

However, the distinction between the two is substantial. While blue hydrogen does not produce any emissions when burnt, its production is far from clean. It is extracted from natural gas in a process that requires a lot of energy and emits vast amounts of carbon dioxide (CO2). While the purpose is to capture and store the gas underground, there are concerns about its long-term viability.

Moreover, producing natural gas releases methane, a potent GHG that, in 20 years, can warm the air 86 times more than CO2. Also, inevitable methane leaks happen during drilling, extraction and transportation.

Scientists claim that to create blue hydrogen, the footprint is more than 20 per cent higher than using natural gas or coal directly for heat, or about 60 per cent more than using diesel.

Therefore, to say that hydrogen presently produced is a low-emission or zero-emission fuel is fanciful.

Experts claim that until commercial-scale green hydrogen production is successfully deployed and becomes cost-competitive, blue hydrogen offers a bridging technology to support the transition to a decarbonised energy system.

However, the solution is temporary. The climate crisis is driving people out of their homes in vulnerable countries and causing massive losses to the Earth’s biodiversity.

Therefore, meeting climate pledges requires faster and more decisive action and we are racing against time.

Dr Abdullah Belhaif Al Nuaimi is Chairman of the Advisory Council of the Emirate of Sharjah