Energy economics is about to undergo a dramatic transformation as the world moves towards a new era of abundance. Hydrogen might become the preferred mode of delivering low-cost clean energy globally as a result of rapidly dropping costs of renewable energy and technological advancements. The rising awareness of hydrogen is broadening the concept of decarbonization. Recently, there has been a lot of talk about green hydrogen. To accomplish the aims of the Green agreement, the European Union would spend $430 billion on green hydrogen by 2030.
Furthermore, Saudi Arabia, Chile, Australia, Japan, and Germany are all investing heavily in leading the green hydrogen economy. GCC countries are stepping towards a decarbonized world by leveraging the green hydrogen opportunity. So, what exactly does green hydrogen mean? By how much has its demand grown? How GCC countries can succeed and how green hydrogen will benefit the states? Continue reading to get the answers to all the above questions.
Green hydrogen is produced with renewable energy or a power source that has decreased carbon emissions. Green hydrogen emits far fewer greenhouse gases than grey hydrogen and can offer sustainable energy for industries like manufacturing, transportation, and more. Due to the versatile nature of hydrogen energy, it can be transformed into electricity or fuel. Every year, hydrogen is currently produced in large quantities of about 70 million metric tons globally that are used for a variety of industrial purposes, including steel manufacturing, oil refinement, chemical and fertilizer production, food processing, etc.
The demand for green hydrogen has been projected to increase dramatically in the medium term. By 2050, it will reach 530 million tones and ultimately substitute 10.4 billion barrels of oil equivalents. In several industries, hydrogen is used as a power source of energy that operates much more efficiently than fossil fuels. Over the last 40 years, the hydrogen demand has steadily increased and now stands at 62 million tons, more than three times what it was in 1980.
Green hydrogen facilitates a wide range of benefits and supports the vision of making governments and businesses more ecologically sustainable. By combining natural gas with hydrogen, carbon output in commercial and domestic heating can be minimized. Electric vehicles can be powered by plugging into electricity networks by converting hydrogen stored in the vehicle’s tank into electricity. Fuel cells are used to convert hydrogen into electricity.
Throughout the year, green hydrogen generation needs a consistent source of low-cost, long-term energy. GCC nations have among the world’s highest sun exposures. The Gulf countries have large areas of barren or flat land. These areas are large enough to facilitate the capacity of building renewable energy and hydrolysis plants on a large scale. It is estimated that 5.6 trillion liters of deionized water will be needed in 2050 to satisfy the green hydrogen demand. To meet this need, seawater is readily available in GCC countries. Due to the availability of modern technologies, the entry barriers into the green hydrogen generation sector are low exceptionally. A few countries, including GCC countries, have acquired the resources and capabilities needed to become market leaders in producing green hydrogen.