Cost and reliability are key conditions for the success of green hydrogen projects

According to a report from the Arab Trade Network on September 2, 2021, driven by global decarbonization efforts and the business opportunities that may follow, green hydrogen has become a key agenda topic for policy makers and industrial participants
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Although related projects are pursuing ambitious goals, the possibilities that accompany the green hydrogen economy depend on multiple conditions such as policy, supply, infrastructure, and demand
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Arthur D Little (ADL), the oldest management consulting firm in the Middle East, elaborated this view in a report titled "Paving the Way for Green Hydrogen: Key Considerations for the Deployment of Green Hydrogen
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This report examines the role that green hydrogen will play in the future, detailing promising use cases and the next steps required for successful deployment
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Carlo Stella, partner of ADL Middle East, explained: “Decarbonization has once again been put on the top of the world’s agenda.
Countries are actively seeking to reduce emissions and transition to clean energy
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The Paris Agreement reached in 2015 triggered a wide range of actions, and in the following years leaders of various countries have encouraged technology-supported decarbonization
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Many governments in the Middle East, especially those in Saudi Arabia and the UAE, are currently exploring exploitable opportunities in this area, because green hydrogen helps reduce economic dependence on hydrocarbons, and contributes to economic development and energy supply Diversification
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In addition, foreign policy and bilateral agreements will also strengthen the importance of a green hydrogen economy
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　　Saudi Arabia has announced the establishment of a green hydrogen strategic development alliance with Germany in 2021 to produce, process, use and transport clean hydrogen.
This is a big step for Saudi Arabia in seeking to produce more green hydrogen
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　　Similarly, in the UAE, a green hydrogen project opened in Dubai’s Mohammed bin Rashid Al Maktoum Solar Park in May this year
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　　This project, in cooperation with Dubai Water and Power Authority (DEWA), Expo 2020 Dubai and Siemens Energy, is the first solar-powered green hydrogen production facility in the Middle East and North Africa
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　　Eddie Canan, head of ADL Middle East, said: “As countries and industry participants work together to achieve their common green hydrogen goals, the strategic alliance will definitely have an impact
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　　"That said, the complexity of green hydrogen production cannot be ignored.
Having dual-source renewable energy is another necessary condition for the success of sustainable decarbonization
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　　Although there is no shortage of a single renewable energy source in many places, there are currently few places that can meet the minimum requirements for multiple energy sources
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　　The report pointed out three necessary conditions for the success of green hydrogen production projects: cost-competitive production, reliability of production and supply, and risk hedging to attract investors
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　　In addition, this report also studies potential hydrogen demand, while providing decision makers with valuable opportunity analysis, risk limits, and other risks and conditions related to policies and infrastructure
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　　Carlo Stella concluded: "Although the green hydrogen project is advancing and more investment has been finalized, this momentum can only be sustained if the conditions for prosperity in the areas of policy, supply, infrastructure, and demand are guaranteed.

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　　"Through collective efforts based on transparency, collaboration, and innovation, all parties involved can realize the decarbonization commitments of enterprises and the country, successfully deploy green hydrogen, and open a new chapter in the transformation of renewable energy
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