'Fuel of the future': Gulf countries, including the UAE, Saudi Arabia and Oman, bet on 'green' hydrogen
News Updates 23 Aug,2023
DUBAI: After riding an oil and gas boom for decades, Gulf states are eyeing "green" hydrogen as they try to transition their economies to non-oil based revenue sources and ease the climate crisis with one stroke.
Oil producers Saudi Arabia, the United Arab Emirates and Oman are investing heavily in the climate-friendly fuel in a search for alternative revenues to crude and gas. Ads by Green hydrogen, which is the hydrogen created when renewable energy electrolyses water, appears to solve many problems: it is low-polluting and has widespread potential uses, which could make it lucrative and planet-saving at the same time.
But the fuel, which currently makes up less than one percent of total hydrogen production, is not yet commercially viable and needs a major scaling-up of renewable energy sources - a process that could take years.
Despite this, Gulf nations sense an opportunity to remain major players in energy markets as oil revenues fall.