GCC countries could generate as much as US$200 billion in revenue from green hydrogen by 2050, with the creation of up to 1 million jobs in the region, according to a new report.
Countries in the GCC benefit from unique natural (solar & wind) resources, abundant space as well as world class infrastructure and expertise, according to the report, ‘The Potential for Green Hydrogen in the GCC Region.’ Under the report’s most aggressive scenario, GCC countries would produce and export green hydrogen and derivatives, such as green ammonia or power fuels, to the Europe and East Asia markets, resulting in potential annual revenues of US$120-200 billion by 2050.
While economies in the region have previously depended on oil & gas, countries will be able to repurpose jobs, with the “green economy’ offering a spectrum of jobs across the value chain, according to the report, published by consulting company Roland Berger and Dii Desert Energy. As many as 450,000 jobs could be created in the region for the renewable generation related to hydrogen production, with the majority in manufacturing and construction.
“The GCC region is on the verge of a new era similar to the discovery of oil decades ago,” said Vatche Kourkejian, Partner at Roland Berger. “In our joint study with Dii Desert Energy, we showcase the huge potential that green hydrogen pauses for the GCC region and the opportunity to continue being the main energy supplier to the world in a sustainable manner. The study looks at green hydrogen's job creation potential as well as the opportunities for localization of parts of the value chain, which would be transformative for the region's economy and drive for diversification.”
Masdar, which contributed to the report, is developing a green hydrogen demonstrator project in Masdar City to support the development of Abu Dhabi’s green hydrogen economy. “Green hydrogen has great potential not just as a fuel of the future, but as the foundation of an industry requiring new technology and a new generation of skilled employees,” said Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar. “The demonstrator plant we are building in Masdar City with our partners will go a long way to proving the commercial viability of green hydrogen.”
The full version of the report ‘‘The Potential for Green Hydrogen in the GCC Region’ is available to download here.