“Like man landing on the moon”: this is how in December 2019, European Commission President Ursula von der Leyen defined the scope of the European Green Deal, the set of policy proposals to achieve so-called climate neutrality by 2050, i.e. a balanced situation between carbon dioxide emitted into the atmosphere and carbon dioxide removed. The Green Deal sets out a precise path to the final goal, outlining intermediate targets, such as a reduction of at least 55% of pollutant emissions by 2030. Among the various strategies presented by the Commission to foster this transition is the one dedicated to green hydrogen, which is considered a key element in the decarbonisation process of the 27 EU countries.

The term ‘green hydrogen’ is in fact used to indicate the ‘clean’ variant of hydrogen, produced through the exclusive use of renewable energy sources, which therefore do not emit CO₂ into the environment. Increasing its production and subsequent use in the energy supply chain would therefore mean advancing along the path sanctioned by the Green Deal, with a clear focus on the objective to be pursued. According to estimates, green hydrogen could meet between 5 and 20 per cent of energy needs in the industrial sector, reaching peaks of 50 per cent in the case of transport. In 2022, however, this gas accounted for only 2% of the European energy mix and its production cycle largely involved the use of non-renewable sources. Therefore, the construction of new plants capable of putting green hydrogen on the market seems necessary, along with the upgrading of existing ones.

Looking at the geographical distribution of production sites already in place and projects in the pipeline, one can see that green hydrogen is now present in all four corners of the Union.
 

Production in Denmark

Financed also thanks to a contribution from the Danish government (with an investment of EUR 33.1 billion), the green hydrogen production plant in Fredericia - a town in the south-central part of the peninsula - saw the light of day in December 2022. Located close to a refinery, HySynergy - the name the parent company Everfuel has given the project - has a capacity of 20 megawatts (MW). The goal is to reach one gigawatt by the end of the decade. In the months following the commissioning, the facility focused on the large-scale production of gas for commercialisation and the development of refuelling solutions for heavy vehicles, such as trucks and buses. 
 

The Spanish factory

In 2020, the energy corporation Iberdrola announced an investment of 150 million euros for the construction of a green hydrogen plant in Puertollano, in the central-southern part of the Iberian Peninsula. With a capacity of 20MW, the facility went into operation in May 2022, with an inauguration ceremony attended by Spain's highest institutions. The clean gas, the result of a solar-powered electrolysis process, is used in the ammonia production cycle of the nearby fertiliser company Fertiberia. The latter has thus been able to reduce its natural gas requirements by 10 per cent, while 39,000 tonnes of carbon dioxide have not been released into the atmosphere thanks to this site.
 

The largest plant in Central and Eastern Europe

Ten megawatts of power and a production capacity of around 1,600 tonnes of green hydrogen per year: these are the numbers of the plant in Százhalombatta, in Hungary, recently started up by the MOL Group, the largest plant in Central and Eastern Europe. Hydrogen from renewable energy sources will be used by the nearby refinery, whose carbon dioxide emissions will decrease by 25,000 tonnes per year. MOL will commit to using clean gas in its fuel production. The group intends to replicate this model in other areas of the region, such as Bratislava and Rijeka, over the next two years.
 

The Italian gigahub

On 11 June, work officially started on the construction of the green hydrogen plant in Cernusco sul Naviglio (in the outskirts of Milan). Resulting from the collaboration between industry players De Nora and Snam, the project has also been financed by the Ministry for Business and Made in Italy to the tune of EUR 63 billion and is scheduled to come into operation in early 2026, after completion in the final months of 2025. The full production capacity of the 40,000 square metre pole is set at 4GW, with 2GW produced by 2030. If confirmed, these numbers would make the Italian gigahub the largest in the world and the only one of its kind in the old continent. In addition to green hydrogen to be fed into the energy chain, the plant will also produce electrolysers (the tools needed to split water into oxygen and hydrogen) to meet the growing global and European demand.

According to the latest analysis, global demand for green hydrogen is growing rapidly: 1,400 billion dollars is the calculated induced revenue globally. The EU's potential green hydrogen production capacity can therefore play a strategic role in the energy transition and climate neutrality pathway. 

Last UN Climate Change Conference (COP28), hosted by the United Arab Emirates ended with an agreement that was called historic by some observers. The final communique -for the first time in history- pledged to transition away “from fossil fuels in energy systems, in a just, orderly and equitable manner” by adopting a fossil fuel phase-out agreement in order “to achieve net zero by 2050”.

The first global stocktake aims to accelerate efforts towards the phase-down of unabated coal power and phasing out inefficient fossil fuel subsidies that do not address energy poverty or just transitions by “tripling renewable energy capacity globally and doubling the global average annual rate of energy efficiency improvements by 2030”.

Not only, finally, 159 nations signed the COP28 UAE Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action to integrate resilient food system into their Nationally Determined Contributions (NDC), in order to reduce the vulnerability of all farmers, fisherfolk, and other food producers to the impacts of climate change, to promote food security and nutrition, to support female farmers and youth, whose livelihoods are threatened by climate change and to develop sustainable water management systems. Last, but not least a serious loss and damage fund was settled to figure out disaster recovery aid to developing nations suffering from rising sea levels, extreme weather events such as desertification, or ocean acidification and biodiversity loss.

The UAE considered these results a success, as declared by UAE’s COP President Sultan al-Jaber: “We should be proud of our historic achievement […]. It is a balanced plan that tackles emissions, bridges the gap on adaptation, reimagines global finance and delivers on loss and damage […]. It is strengthened by inclusivity. And it is reinforced by collaboration.”

His speech further underscored the Emirati ambitions to play an influential role in global climate diplomacy, as it is the second Gulf state to host the COP after Qatar in 2012. Hence, the conference served as an excellent opportunity for the Emirates to showcase their climate action commitment on different levels.

The most illustrative example was the UAE’s launch of three Alterra Fund, the which aims to contribute an additional USD 250 billion by 2030 to climate economic measures by multiplying private capital and reducing barriers to investment in emerging markets, including Least Developed Countries (LDCs) and Small Island Developing States (SIDS). Its efforts also focus on mixing public and private finance to leverage public funds and attract more private investments to promote the green economy.

Notably, the UAE already invests in renewable energy projects such as solar parks, and is engaged with the GCA, which aims to provide a platform for know-how transfer, training, and capacity development in climate action. Another initiative promoted by the UAE during COP28 was the inauguration of the Oil and Gas Decarbonisation Charter, which aims to reduce emissions in the industrial sector, such as the oil industry. Thus in introducing such measures, the UAE clearly aims to portray itself as a “green champion” and a proactive player in global climate mitigation and adaptation.

The UAE preserved its status as a regional forerunner in climate diplomacy towards other regional players such as Saudi Arabia. The kingdom also aims to establish itself as a global hub for climate diplomacy by hosting the MENA Climate Week 2023 in Riyadh, investing heavily in hydrogen, and introducing the Middle East Green Initiative.

Many of the Gulf states have started to promote energy diversification and investments in non-oil sectors. Between 2012 and 2022, the renewable energy capacity installed across the GCC (Gulf Cooperation Council) witnessed an 85-fold increase, and Gulf countries such as Saudi Arabia, the UAE, and Oman launched the installation of 14 hydrogen projects.

Furthermore, Saudi Arabia and the UAE announced an injection of up to USD 266.6 billion and USD 54.5 billion respectively by 2030 in their energy transition. In this regard, national energy champions and investment funds such as Saudi Arabia’s ACWA Power, the Qatar Investment Authority, and Abu Dhabi’s Masdar have allocated in other markets located in North Africa, Central or Eastern Asia, or Europe to diversify their energy portfolio and develop clean technologies.

A special mention deserves one of the most ambitious projects spearheaded by Saudi Arabia in its transition towards sustainability: the NEOM project. Situated in the northwest of the country, NEOM aims to be the world's most innovative and sustainable city. Spanning over 26,000 square kilometers, NEOM is envisioned as a global center for trade and investment, powered entirely by renewable energy.

With a focus on cutting-edge technology and sustainable living, NEOM seeks to reduce Saudi Arabia's dependence on revenues from oil while positioning itself as a leader in green development. The next World Future Energy Summit in Abu Dhabi, next April 16/18, will give a chance to discover all the new projects on the field, a platform providing a market entry for any company to work and operate in the renewable energy and sustainability business in the UAE, GCC and even the complete MENA region, a place to showcase and highlight achievements, technologies, services and solution.