A combination of hydrogen produced from hydrocarbons and renewable sources will help the world meet its energy needs and fuel industrial, transport and power sectors in the future as economies continue to pursue their net-zero goals.
In the more immediate future, however, hydrogen produced from fossil fuels is more likely to dominate as it is a “lower cost” solution, top executives from Saudi Aramco and British energy giant BP told an online panel discussion at the Energy Intelligence Forum on Thursday.
“It is not going to be either blue or green hydrogen, it is going to be a combination [as] the economic optimal is not in one particular technology,” Ahmad Al Khowaiter, chief technology officer at Saudi Aramco, said. “There is an advantage today in fossil fuel-based hydrocarbons because it is what is available today and there’s [only] incremental capital required to produce hydrogen at scale.”
Hydrogen is considered a critical fuel of the future and interest in the low-carbon alternative is gaining momentum as the world explores its potential for the industrial, power generation and transportation sectors to cut emissions and meet their global targets of carbon neutrality.
State-controlled Saudi Aramco, the world’s biggest oil exporter, also recognises much promise in electrolysis-based low-carbon hydrogen through renewable sources. As the industry scales up, “we do expect it to be become much more competitive” in the next few years, Mr Al Khowaiter said.
Green hydrogen is produced from renewable-powered electrolysis, while blue hydrogen is generated through steam methane reformation.
BP, which is transitioning from an oil and gas company to an integrated energy firm with renewables in its portfolio, is focusing on both blue and green hydrogen projects, said Louise Jacobsen Plutt, BP’s senior vice president for hydrogen and carbon capture utilisation and storage businesses.
“In Europe, there are countries that are making selection in terms of whether they want to use blue hydrogen or green hydrogen,” Ms Plutt said.
BP is working on green hydrogen projects in Germany and in the Netherlands, while in places such as the UK, it is a combination of both blue and green as the state policy is geared towards both.
“It all is about picking the best solution for an area based on what customers want and governments support,” she said.
Globally, the hydrogen industry is expected to grow to $183bn by 2023, from $129bn in 2017, according to Fitch Solutions. French investment bank Natixis has estimated that investments in hydrogen will exceed $300bn by 2030.
Hydrogen, which is being tested as an alternative to fossil fuels in the transport sector, can help slash greenhouse gas emissions from the hydrocarbons sector by 34 per cent, according to BloombergNEF.
Many oil-exporting nations, such as the UAE and Saudi Arabia, are developing the clean fuel for domestic consumption and exports. Earlier this year, three Abu Dhabi-backed entities – Mubadala Investment Company, Abu Dhabi National Oil Company and holding company ADQ – formed an alliance to develop a hydrogen centre.
On Thursday, the UAE announced Dh600bn ($163bn) of investments in clean and renewable energy sources in the next three decades as part of its 2050 net-zero agenda.
Hydrogen growth plans by the oil-exporting countries in the GCC could reap as much as $100bn a year by 2050, Columbia University and Qamar Energy said in a report last month.
However, currently, global production of low-carbon hydrogen is minimal as it has yet to become cost competitive with fossil fuels to be produced at scale and to be used in industry and transportation sectors.
To kick-start the market to achieve scale, hydrocarbon-based hydrogen can be the stepping stone, Mr Al Khowaiter said.
“We already have the facilities and technology. It’s mature and ready to go,” he said.
The International Energy Agency (IEA) said governments around the world are increasingly investing in hydrogen projects, but they need to do more to reduce costs and encourage wider use of the clean fuel across sectors.
It is not going to be either blue or green hydrogen, it is going to be a combination [as] the economic optimal is not in one particular technology
Ahmad Al Khowaiter,
chief technology officer, Saudi Aramco
“It is important to support the development of low-carbon hydrogen if governments are going to meet their climate and energy ambitions,” Fatih Birol, the IEA’s executive director, said at the time.
Panellists at the Energy Intelligence Forum said there are “good messages from stakeholders” but more support is needed for the development of technologies and subsequently a global market for the low-carbon fuel.
“There is no argument in terms of the support required to really kick-start the low-carbon ecosystem," Ms Plutt said.
“The good news is we do see signs of momentum in that space. The regulatory environment is increasingly turning in favour of clean energy.
“But what we would like to see is a regulatory environment that enables hydrogen to be an integral part of the transition”, which will help develop and sustain the world's low-carbon hydrogen market, she added.
Story%20behind%20the%20UAE%20flag
%3Cp%3EThe%20UAE%20flag%20was%20first%20unveiled%20on%20December%202%2C%201971%2C%20the%20day%20the%20UAE%20was%20formed.%C2%A0%3C%2Fp%3E%0A%3Cp%3EIt%20was%20designed%20by%20Abdullah%20Mohammed%20Al%20Maainah%2C%2019%2C%20an%20Emirati%20from%20Abu%20Dhabi.%C2%A0%3C%2Fp%3E%0A%3Cp%3EMr%20Al%20Maainah%20said%20in%20an%20interview%20with%20%3Cem%3EThe%20National%3C%2Fem%3E%20in%202011%20he%20chose%20the%20colours%20for%20local%20reasons.%C2%A0%3C%2Fp%3E%0A%3Cp%3EThe%20black%20represents%20the%20oil%20riches%20that%20transformed%20the%20UAE%2C%20green%20stands%20for%20fertility%20and%20the%20red%20and%20white%20colours%20were%20drawn%20from%20those%20found%20in%20existing%20emirate%20flags.%3C%2Fp%3E%0A
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
UAE currency: the story behind the money in your pockets
PSG's line up
GK: Alphonse Areola (youth academy)
Defence - RB: Dani Alves (free transfer); CB: Marquinhos (€31.4 million); CB: Thiago Silva (€42m); LB: Layvin Kurzawa (€23m)
Midfield - Angel di Maria (€47m); Adrien Rabiot (youth academy); Marco Verratti (€12m)
Forwards - Neymar (€222m); Edinson Cavani (€63m); Kylian Mbappe (initial: loan; to buy: €180m)
Total cost: €440.4m (€620.4m if Mbappe makes permanent move)
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
More from Rashmee Roshan Lall
UAE currency: the story behind the money in your pockets
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Salah in numbers
€39 million: Liverpool agreed a fee, including add-ons, in the region of €39m (nearly Dh176m) to sign Salah from Roma last year. The exchange rate at the time meant that cost the Reds £34.3m - a bargain given his performances since.
13: The 25-year-old player was not a complete stranger to the Premier League when he arrived at Liverpool this summer. However, during his previous stint at Chelsea, he made just 13 Premier League appearances, seven of which were off the bench, and scored only twice.
57: It was in the 57th minute of his Liverpool bow when Salah opened his account for the Reds in the 3-3 draw with Watford back in August. The Egyptian prodded the ball over the line from close range after latching onto Roberto Firmino's attempted lob.
7: Salah's best scoring streak of the season occurred between an FA Cup tie against West Brom on January 27 and a Premier League win over Newcastle on March 3. He scored for seven games running in all competitions and struck twice against Tottenham.
3: This season Salah became the first player in Premier League history to win the player of the month award three times during a term. He was voted as the division's best player in November, February and March.
40: Salah joined Roger Hunt and Ian Rush as the only players in Liverpool's history to have scored 40 times in a single season when he headed home against Bournemouth at Anfield earlier this month.
30: The goal against Bournemouth ensured the Egyptian achieved another milestone in becoming the first African player to score 30 times across one Premier League campaign.
8: As well as his fine form in England, Salah has also scored eight times in the tournament phase of this season's Champions League. Only Real Madrid's Cristiano Ronaldo, with 15 to his credit, has found the net more often in the group stages and knockout rounds of Europe's premier club competition.
