UAE lifts hydrogen push in Rotterdam

Greenlogue/AP

UAE officials used the World Hydrogen Summit & Exhibition in Rotterdam to reinforce the country’s ambition to become a global hub for low-emission hydrogen, placing cross-border trade, common standards and industrial decarbonisation at the centre of its energy transition agenda.

The Ministry of Energy and Infrastructure represented the UAE at the gathering in the Netherlands, where governments, technology developers, financiers and energy companies examined the commercial conditions needed to scale hydrogen production and move it across borders. The UAE also joined the International Hydrogen Trade Forum, a platform focused on supply-chain integration and the rules needed to support a global hydrogen market.

The country’s message in Rotterdam was closely aligned with the National Hydrogen Strategy 2050, which seeks to build an integrated ecosystem covering production, transport, storage and use. The strategy aims to position the UAE among the world’s major producers and suppliers of low-emission hydrogen by 2031, with output targeted at 1.4 million tonnes a year by then and 14.9 million tonnes by 2050.

Policy alignment formed a central part of the UAE’s intervention. Officials highlighted the need for international, regional and domestic standards that can give buyers and investors confidence in the origin, carbon intensity and tradability of hydrogen. Certification remains one of the biggest barriers to large-scale hydrogen trade, as exporters and importers seek clear rules on whether fuel is produced from renewable electricity, natural gas with carbon capture, nuclear energy or other low-emission routes.

The Rotterdam summit came as hydrogen developers worldwide face a more demanding investment climate. Project costs have risen, offtake agreements remain difficult to secure, and several markets are still refining subsidy, tax credit and certification regimes. For the UAE, the challenge is to convert abundant solar resources, existing energy infrastructure, ports and industrial clusters into commercially viable hydrogen supply chains before rival producers in the Gulf, Australia, Europe and North America gain stronger market positions.

The UAE’s strategy envisages the creation of dedicated hydrogen oases, beginning with two by 2031 and expanding to five by 2050. These zones are intended to bring together production facilities, storage assets, export infrastructure and end users in sectors where direct electrification is difficult. Heavy industry, chemicals, aviation, shipping and fertilisers are among the areas where low-emission hydrogen and its derivatives could play a material role.

Abu Dhabi’s industrial base is already central to that plan. The Ruwais industrial area is being developed as a platform for lower-carbon fuels and chemicals, including ammonia. A one million tonne-a-year low-carbon ammonia project under development at Al Ruwais is expected to support exports to Asian markets and provide a route for hydrogen to be transported in a more practical form.

Masdar’s overseas activity has also strengthened the UAE’s hydrogen profile. The company is participating in major European green hydrogen projects, including a large development in southern Spain with an initial 300-megawatt capacity and a planned investment of about €1.2 billion. It has also moved into Austria’s largest hydrogen project, a 140-megawatt electrolysis plant expected to produce up to 23,000 tonnes of green hydrogen annually once operational.

These investments reflect a broader UAE strategy of combining domestic capacity building with overseas partnerships. The country is seeking to secure a role not only as a producer, but also as an investor, technology partner and logistics player in the emerging hydrogen economy. Its ports, shipping links and established energy trading relationships give it an advantage, though the market remains at an early stage.

The UAE’s energy transition approach continues to balance hydrocarbons, renewables, nuclear power and lower-carbon fuels. Clean energy targets under national strategy are being pursued alongside expansion of conventional energy infrastructure, reflecting the country’s view that energy security and emissions reduction must advance together. That position has gained traction as governments confront rising electricity demand, industrial competitiveness concerns and geopolitical pressure on energy routes.

Hydrogen’s commercial path, however, remains uneven. Analysts have pointed to high production costs, limited domestic demand, water constraints, dependence on imported technology and the need for stronger research and development as issues that could slow delivery. Regulatory fragmentation across export and import markets adds another layer of uncertainty for project developers.

via Greenlogue.com

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