Energy, Oil & Gas

Abu Dhabi strengthens position in global hydrogen economy, report finds

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The Abu Dhabi Chamber of Commerce and Industry (ADCCI) has identified Abu Dhabi as one of the world’s most strategically positioned regions in the emerging hydrogen economy, according to its June 2026 report, Abu Dhabi’s Positioning in the Hydrogen Economy.

The report, prepared by the Chamber’s Business Intelligence Department, highlights the emirate’s transition from hydrogen policy commitments to operational projects amid a global slowdown in some hydrogen markets due to policy uncertainty.

The report states that the UAE’s combination of abundant solar resources, advanced electricity infrastructure, industrial capabilities and competitive financing conditions gives it a strong advantage in low-cost hydrogen production.

The country is expected to rank among the world’s lowest-cost producers of hydrogen and ammonia by 2030, supporting exports to key markets including the European Union, Japan and South Korea.

Abu Dhabi is leading the UAE’s hydrogen ambitions with a target of producing 1.4 million tonnes per year of low-carbon hydrogen by 2031.

The report highlights a growing shift toward hydrogen derivatives, including green ammonia, methanol, synthetic fuels and sustainable aviation fuel (SAF), as more commercially viable near-term opportunities.

Several initiatives are supporting Abu Dhabi’s expansion across the hydrogen value chain, including projects involving green hydrogen-based methanol and SAF production, e-methane development, bunkering infrastructure and synthetic fuels.

These efforts could create significant export opportunities, generate employment and contribute to emissions reduction targets.

The report identifies securing long-term customers, or offtakers, as a critical factor for scaling hydrogen projects globally.

While only a limited share of low-carbon hydrogen projects worldwide have confirmed buyers, Abu Dhabi is advancing through customer-linked initiatives.

The Emsteel–Masdar green steel pilot, described as the first hydrogen-based steel project in the Middle East and North Africa, is already operational, with agreements signed to supply green steel for sustainable construction projects.

Beyond hydrogen production, ADCCI highlights opportunities in manufacturing and exporting hydrogen-related technologies and equipment.

Abu Dhabi’s industrial zones, including Kezad, and logistics infrastructure at Khalifa Port provide a foundation for becoming a regional manufacturing and re-export hub.

Potential export opportunities by 2029 include hydrogen production equipment, port infrastructure components and blending technologies.

The report notes that partnerships such as the agreement between Adnoc, John Cockerill Hydrogen and Strata Manufacturing to produce electrolysers in the UAE demonstrate the country’s growing role in the global hydrogen supply chain.

ADCCI said the findings support Abu Dhabi’s wider economic diversification strategy by providing businesses with market intelligence and identifying opportunities linked to clean energy, industrial development and sustainable growth. -OGN/TradeArabia News Service