The Middle East and North Africa (MENA) region exhibits robust overall potential for the development of hydrogen infrastructure in the long term, as growing global demand for low-carbon fuels begins to offer a strong basis for diversification to support non-oil economic activity in the region. Green hydrogen involves the utilisation of electricity supplied by renewable energy sources, to produce hydrogen via electrolysis. The region's longstanding expertise in relation to its mature hydrocarbon infrastructure would, in theory, reduce the investment hurdle for hydrogen infrastructure. However, the broader costs entailed in upgrading surrounding infrastructure, particularly for hydrogen transportation, handling and storage, remain problematic. Our proprietary Blue Hydrogen Suitability Index, which assesses the suitability of a given market for the development of a blue hydrogen industry, also highlights the region's conducive position for hydrogen infrastructure development.

Source: The North Africa Journal July 13, 2022 09:42 UTC