An employee looks on at a Saudi Aramco oil facility in Abqaiq, Saudi Arabia on Oct 12, 2019. [Photo/Agencies]
Countries in the Middle East and North Africa are taking steps to become major exporters of hydrogen in a bid to meet demand for cleaner sources of energy.
The countries can exploit low-cost gas resources, according to research by the Arab Petroleum Investments Corporation, a multilateral development financial institution.
In a report titled MENA (Middle East and North Africa) Power Investment Outlook 2020-2024, the institution said Saudi Arabia and Morocco have already taken measurable steps to bolster their position as low-cost exporters of blue and green hydrogen. The former is hydrogen gas that is produced by using nonrenewable energy sources. The latter refers to hydrogen gas that is produced from renewable energy sources. The countries have also taken strides in producing net-zero ammonia and other low-carbon products.
The race for hydrogen is accelerating the penetration of low-cost renewable energy sources; Role of private sector financing still hinges on sector reforms and government guarantees; Renewables and nuclear technologies claimed higher share in power supply mix due to the COVID-19 pandemic; Committed investments in MENA power sector hold relatively steady while planned investments decline by USD 114 billion compared to last year’s outlook due to commissioning of several projects in 2019; Future demand and investments in the power sector will be largely determined by the power market structure, policy efficiency and sector digitalization; Ensuring energy security through regional electricity integration regains importance.
Mena big source of low-cost green energy: Apicorp
DAMMAM, Saudi Arabia, December 29, 2020 The Mena region has emerged as a strong candidate for becoming a major blue and green hydrogen-exporting region due to the combination of low-cost gas resources and renewable energy, a report said. Saudi Arabia and Morocco have already taken measurable steps to bolster their position as low-cost exporters of blue and green hydrogen, as well as net-zero ammonia and other low-carbon products, added the report Mena Power Investment Outlook 2020-2024 from the Arab Petroleum Investments Corporation (Apicorp), a multilateral development financial institution. Another key trend noted by the report is the expected uptick in planned investments directed to power transmission and distribution projects in several countries over the next five years, driven by the rise of renewables and focus on boosting regional interconnectivity.
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Planned investment in the Middle East and North Africa region’s power sector slumped by a third amid the pandemic-driven slowdown this year. However, investments already committed to the sector remained stable in 2020, according to the Arab Petroleum Investments Corporation.
The $114 billion drop in planned funding is driven partly by several regional projects being moved to committed investment status in 2020, Apicorp, a multilateral lender focused on the energy sector, said in its 2020-2024 Mena Power Investment Outlook report.
Stalled projects in Iran, Iraq, Tunisia and Lebanon due to the direct impact of the pandemic also drove the overall value of planned investments down, Apicorp said on Tuesday.
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