UAE signs off on National Energy Strategy update: The UAE government has approved its updated National Energy Strategy increasing the country’s 2030 renewable capacity goal to 14 GW from 9.2 GW, according to a statement. The new goal represents triple the currently installed renewable energy capacity and will require AED 150-200 bn (around USD 41-55 bn) in funding. The strategy also outlines a goal to have 30% of the country’s energy generated from renewables by 2031, and net AED 100 bn (USD 27 bn) in financial savings by 2030.

Lofty hydrogen goals: The country approved a hydrogen strategy with a goal to transform the nation into a global top 10 hydrogen producer by 2031, the statement notes. The country hopes to produce 14-22 mn tons of hydrogen per year by 2050, according to Argus.

What we know about the hydrogen strategy: “The [hydrogen] strategy aims to promote the UAE's position as a producer and exporter of low-emission hydrogen over the next 8 years through the development of supply chains, the establishment of hydrogen oases and a national research and development center,” Prime Minister Mohammed bin Rashid Al Maktoum said, according to the statement. No further details of the strategy are publicly available at this time.

And there are a lot of developers waiting in the wings: As of October 2022, USD 10.3 bn worth of agreements for green hydrogen and ammonia plants were signed, while a 2022 summary report found that the UAE has signed a total of 10 preliminary low-carbon hydrogen agreements. The UAE plans to hold a 25% share of the global hydrogen market by 2030.

A large volume is earmarked for export: The UAE’s Adnoc signed an agreement with Japanese manufacturing giant Kawasaki in April to explore joint production, liquefaction, and transport mechanisms for low-carbon hydrogen for delivery to international markets. UAE’s Al Fattan Energy signed an agreement with South Korea’s LTechUVC in February to build a USD 400 mn, 200 MW green hydrogen and ammonia facility to produce green hydrogen for export by 2027. Finally, German oil and gas company Hydrogenious LOHC Technologies is working on establishing a UAE-Europe hydrogen pipeline with Adnoc.

Ramping up the country’s EV network is a priority: The cabinet also approved the National Electric Vehicles Policy, which aims to “build a national network of electric vehicle chargers, organize the market of electric vehicles, promote associated industries to ensure lower emissions, lower energy consumption, and maintain the quality of roads,” Al Maktoum said. The policy will contribute to reducing energy consumption in the transport sector by 20% through its Green Mobility Project. No further details of the strategy are publicly available at this time.

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