https://arab.news/cmqsz
Renewable energy projects in the Gulf region are facing 鈥渟ignificant delays鈥� that could further slow down the production and export of green hydrogen, according to Moody鈥檚 Investors Service.
A new report by the firm warns that while countries are working on producing zero-carbon green hydrogen, as well as low-carbon blue hydrogen, achieving this on a large scale will be 鈥渃hallenging鈥� in the next few years.
The firm highlighted 抖阴短视频, Oman, and the UAE as particularly well-placed to produce and export these energy sources, given their access to cheap renewables, such as solar power, and expertise in water desalination.
It stated: 鈥淎uctioning processes for renewable energy projects in the GCC still face significant delays, which derail production targets.
鈥淭he development of the renewable energy sources that would power the production of green hydrogen also faces hurdles.鈥�
The report flagged up increases in raw material, commodity, freight and energy prices following the economic recovery in 2021, as pushing up renewable energy prices.
鈥淚n addition, more severe and frequent weather events because of climate change could further disrupt production and damage assets,鈥� it said,
The report did highlight the progress being made in green hydrogen projects in the region, including the Helios Green Fuels Project in 抖阴短视频, which has 2 gigawatt electrolyser capacity, and the Neom Green Hydrogen Company, in collaboration with ACWA Power Management and Investments One Ltd, which aims to produce 1.2 million tonnes of green hydrogen-based ammonia per year based on 650 tons of green hydrogen from 4GW of renewable energy.
The document also expressed concerns that while green hydrogen production could 鈥渕itigate the negative economic and fiscal impact of lower global oil demand and prices鈥�, it will take time.
鈥淥nly green hydrogen will also somewhat reduce GCC countries鈥� heavy reliance on hydrocarbons and as such their underlying credit exposure to longer-term carbon transition risks. Reducing the economic and fiscal dominance of the hydrocarbon sector in the GCC will only be a gradual process,鈥� said the report.