Policy and economic challenges towards scalable green-H2 transition in the middle east and north Africa region

Abstract

A critical component of achieving the goals of the Paris climate agreement may be the use of hydrogen (H2) as a clean, renewable energy source. Green H2 is referred to as “the New-Oil” in the Middle East and North Africa (MENA) region. This study examines the MENA's potential for scalable blue and green H2 production to guide the value chain of the H2 policy setting and economic attractiveness. Large-scale H2 energy transition drivers, prospects, and challenges are explored in the context of technological foundations, scalability, and potential success of the H2 value chain. The synthesis showed that the MENA region contributed almost 11% of global green H2 projects and accounted for more than half of the overall production capacity since 2015. A scalable green H2 transition in the region may be hampered by a lack of water resources, sluggish capacity expansion, insufficient H2 infrastructure and value chain, underdeveloped fueling stations, and expensive water electrolyzers. Along with electrolytic green H2, green H2 production from municipal solid waste (MSW) and blue H2 production from natural gas offer a promising potential (∼170 MT/y from MSW and ∼54 TCM from natural gas reserves). In closure, we identify future policy and economic strategies for improving the H2 value chain and assist decision-makers, key stakeholders, and investors in developing regulatory and institutional capacity for creating green H2 as a tradable commodity.