Middle East Races Ahead in Energy Transformation with Hydrogen Investment

2025-03-06 investment

Middle East, Thursday, 6 March 2025.
The Middle East is set to lead low-carbon energy with hydrogen expected to power 14% of the grid by 2035. This shift marks a dynamic change in regional energy strategies.

Renewable Revolution Taking Shape

I’m witnessing a remarkable transformation in the Middle East’s energy landscape. The region’s renewable energy capacity has surged dramatically, growing from just 1 GW fifteen years ago to an impressive 30 GW today, with ambitious plans to reach 131 GW by 2030 [5]. Leading this charge is the UAE with 6.3 GW of installed capacity, followed closely by Egypt and Saudi Arabia with 4.6 GW and 4.5 GW respectively [5].

Hydrogen Projects Surge

The region’s commitment to hydrogen is particularly striking, with over 110 hydrogen projects announced by the end of 2024, and 90% of these focusing on green hydrogen production [5]. What’s even more impressive is the projected growth rate - green hydrogen capacity is expected to grow at a remarkable CAGR of nearly 150% between 2025 and 2030, eventually overtaking blue hydrogen by 2028 [1].

Innovative Projects Leading the Way

I’m particularly excited about some groundbreaking projects emerging in the region. In Egypt, a major green hydrogen and ammonia production facility is being developed in the Gulf of Suez, designed to provide green fuels for ships transiting the Suez Canal [3]. Meanwhile, MASK Architects has unveiled what they’re calling the world’s first hydrogen-powered luxury floating resort, complete with cutting-edge sustainable technologies and AI-driven energy management systems [2].

Investment and Economic Impact

The financial commitment to this transition is substantial. In December 2023, the UAE launched the $30 billion ALTÉRRA climate investment fund [7], while First Abu Dhabi Bank has committed to investing over 500 billion Emirati dirhams (approximately $136 billion) in sustainable finance by 2030 [7]. However, challenges remain as the region’s battery energy storage capacity is growing at a CAGR of 16% between 2025 and 2030, significantly lower than the global rate of 51% [1].

Bronnen

energy transition low-carbon