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For green hydrogen to become competitive vis-a-vis hydrogen produced using fossil fuels or grey hydrogen, its production costs need to come down, according to Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity & Water Authority.
Last month, Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy, had inaugurated the Middle East’s first Green Hydrogen project at the Mohammed bin Rashid Al Maktoum Solar Park in Dubai.
Al Tayer said in an op-ed that green hydrogen could play a significant role in reducing carbon emissions from transport and electricity sectors. However, he noted, “if green hydrogen successfully reduces the costs compared to its current price range of $3-$6.5/kilogramme, it will likely be able to compete with hydrogen produced using fossil fuels and associated with carbon emissions, whose cost is less than $1 [/kg].”
The DEWA chief said he expects green hydrogen costs to take the same trajectory as solar and wind energy, and batteries.
“We had the same experience when we launched the first phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai [in 2013], which used solar photovoltaic panels with a capacity of 13 megawatts (MW). The pilot project generates electricity from the thin-film solar cells with an efficiency of only 11.8 percent, while the cost of producing a kilowatt hour of electrical energy reached 11 cents. Currently, we managed to reach an 22 percent efficiency rate. Following our adoption of the bifacial solar cell technology, self-cleaning solutions, and an advanced automatic sun tracking system, we will be able to increase the efficiency of energy production to 24 percent, and also decrease the cost of producing a kilowatt hour of electrical energy to just 1.69 cents, and these costs are still declining.”
He said there is growing interest worldwide in shifting from fossil fuels to environmentally friendly and relatively low-cost energy sources, especially for countries looking to recover from the impact of COVID-19 pandemic, which will change the global energy landscape in the next ten years.
“In tandem with this global trend, the prospects for using green hydrogen in power generation and driving development for many vital sectors has recently increased, which explains the recent launch of 320 pilot projects to produce green hydrogen in several countries. The latest Frost & Sullivan report indicated that annual green hydrogen production will increase by 57 percent annually between 2019 and 2030, from 40,000 tonnes to 5.7 million tonnes.”
He said the UAE is the first country in the Middle East and North Africa, which has taken major steps to produce hydrogen using clean energy. This supports the government’s strategy to build an economy based on renewable energy sources, which helps increase foreign investments and scale up high-end partnerships.
Al Tayer emphasised that the green hydrogen project supports the Dubai Clean Energy Strategy 2050, which aims to achieve 75 percent of Dubai’s total power capacity from clean energy sources by 2050 as well Dubai Green Mobility Strategy 2030.
“It also supports the UAE’s Hydrogen Vehicles System, which was approved by the cabinet headed by Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. This strategy aims to develop the hydrogen economy in the UAE, open up local markets to hydrogen vehicles, and encourage an increase in the number of environmentally friendly vehicles. This represents the cornerstone for encouraging the use and licensing of hydrogen fuel-based vehicles, facilities and equipment, which contributes to achieving sustainable growth that achieves a balance with the environment, economy, and society.”
(Writing by N Madhura; Editing by Anoop Menon)
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