The chief economist of the International Energy Forum (IEF), Dr. Laila Ben Ali, said in an interview with “Al Arabiya” today, Thursday, that 90% of hydrogen is consumed in the refining and petrochemical sectors and in some industries, and is dominated by gray hydrogen and the transition to green and blue hydrogen needs to be taken into account Structural change in the hydrogen market.
He added that the major structural changes are changing the gas infrastructure, which is available in the countries of the region and others, with the need to integrate increasing quantities of hydrogen into pipelines and can reach 30%, and with the investments of companies, the share of hydrogen in gas-using industries can be up to 50%, so hydrogen can be used in any sector that uses natural gas.
The chief economist of the International Energy Forum “IEF” said that government support is a complex issue in the energy sector, and in the field of hydrogen it is more complex, and there are two main components in the cost of green hydrogen, the first is electricity from renewable sources and the region has a competitive advantage in as well as through solar and wind power generation projects, and the second most complex component of the hydrogen industry are electrolysers, which are expensive and technically unsuitable.
Dr Laila Ben Ali said that hydrogen projects do not necessarily come at the expense of oil profits, but we hope that blue hydrogen is a strategic solution to extend the use of oil resources.
He added that the Middle East and North Africa region has a competitive advantage represented by the abundant oil resource base represented by the low cost of production and low carbon content.In some countries, depleted oil wells can be used for storing, capturing and reusing carbon dioxide, a technology that has developed very recently.
Blue hydrogen was expected to see further technical and financial improvements, pointing out that oil producing countries have a competitive advantage in blue hydrogen.
Read More About: Business News