The hydrogen opportunity
Hydrogen dominated headlines when COP brought global attention to our region in 2022. Since then, we have seen bold ambitions, from national strategies to project announcements and major project plans, but progress across MENA remains slow.
There is no doubt that low-carbon hydrogen could play a key role in significantly reducing greenhouse gas emissions. With strong solar and wind resources, a strategic geographic position, and existing energy infrastructure, our region surely has what it takes to become a leader not just in exporting hydrogen, but also in using it locally.
The momentum is growing, but what will it take to move from potential to action?
Breaking the plateau
At the Clean Energy Business Council MENA, we regularly meet with our members, government stakeholders, and partners locally, regionally, and internationally, and create a space where businesses can share their outlook and recommend ideas for policies that could make a difference.
Within the CEBC’s Clean Hydrogen working group, a few core enablers are consistently highlighted to drive further development following the influx of previously announced projects and commitments.
1. Robust offtake agreements. Our members are closest to action, building projects and navigating the real business challenges. The need for offtake agreements is an enabler that is frequently emphasized upon, as they signal market demand and give investors the confidence to put in funds.
2. Stronger demand-side commitments. We need more domestic use cases – the potential of hydrogen has been widely acknowledged, but actual industrial integration in industry, transport, and energy systems will anchor projects and drive meaningful scale. This, in turn, will also expedite the readiness of complementary technologies, such as CCUS (Carbon Capture, Utilization, and Storage) for blue hydrogen, which is necessary for a sustainable hydrogen economy.
3. Supportive policy frameworks and clear regulatory pathways.Policy shapes markets. At present, there is a lack of hydrogen-specific legislation, with existing frameworks covering only parts of the hydrogen value chain, and this has been identified as why momentum has stalled. A clear pathway will give all market players the clarity and confidence they need to plan, invest, and deliver.
4. Enhanced collaboration between the public and private sectors. Looking at global best practices that have implemented this model, it ensures alignment between national strategies and market realities, cultivating innovation through joint action.
5. Cost-competitive production and infrastructure development. Capital intensity and accelerated deployment will come with the implementation of targeted incentives, financing models, and partnerships.
Taken together, these enablers underscore a broader truth: no single intervention will be enough to unlock the full potential of the hydrogen economy – or any clean energy solution.
A blend of policy action, active market development, and strategic public-private partnerships will be the foundation to drive change. Each lever reinforces the other: clear policy frameworks create the incentives, market signals such as offtake agreements and domestic demand commitments encourage investment, and collaboration ensures that innovation is aligned with national priorities and grounded in realities.
A long-term strategy for realizing its full potential
Looking at the full spectrum of its potential, hydrogen offers not only a clean fuel for transport and industry, but also in storage, grid balancing, and as a green feedstock for industrial processes.
While our region is rightly focused on mature solutions in the near term, hydrogen stands out as a transformative, medium-to-long-term solution, especially for the deep decarbonization that is needed to achieve 2030 and 2050 targets in time.
All of this said, innovative approaches to producing and deploying hydrogen are pushing past curiosity, moving decisively into progress. Notably, BEEAH Group, a Partner Member of the Council, partnered with Chinook Hydrogen to develop the world’s first Waste-to-Hydrogen plant. The facility will convert waste into hydrogen and capture carbon dioxide, embodying circular economy principles and marking a significant milestone for decarbonization and climate action.
It is well understood that scaling clean hydrogen will take time, which is precisely why the urgency to invest, innovate, and lay the groundwork must begin now.
Driving change one step at a time
At the CEBC, we stand at the forefront of steering impactful change by facilitating dialogue, collaboration, and policy recommendations. Through the Council’s five specialized working groups, clean hydrogen stands out as a core focus, recognized as essential to achieving our mission.
One of the Clean Hydrogen working group’s ongoing focuses is developing an updated, comprehensive white paper building on earlier efforts, which highlighted the ambitious projects and collective efforts in the lead up to and following COP27.
“To unlock clean hydrogen’s full potential and realize Net Zero ambitions by 2050, MENA countries must accelerate investment in infrastructure and regulatory frameworks,” said Alejandro Longueira, Principal in Energy and Natural Resources at Oliver Wyman, a Partner Member of the Council. “Within the Clean Hydrogen working group, we are mapping the entire value chain to pinpoint bottlenecks and recommend practical solutions for both industry and policymakers. The challenges ahead demand broad alliances and only by bringing together diverse players can we drive real progress.”
The upcoming report will provide an in-depth overview of the current landscape, policy frameworks and needs, infrastructure requirements, and other topics imperative to advancing the hydrogen economy in our region. Alongside its members and partners, the Council is actively uncovering opportunities across the region and shaping policies aimed at creating a strong enabling environment.
You can download the CEBC’s previous publication on Harnessing Low-Carbon Hydrogen Potential in the MENA region here.
We invite all stakeholders, from policymakers to innovators, to work with us towards shaping the region’s clean energy future. Get in touch at info@cebcmena.com to engage in membership and partnership programs and explore ways we can drive impact together.
