UAE targets $1.3/kg blue hydrogen

Country should target green and blue hydrogen production as it looks to develop market, says Qamar Energy report

The UAE could produce blue hydrogen for as little as $1.3/kg based on IEA estimates for gas prices, according to a report from consultancy Qamar Energy. This is at the low end of the range calculated by thinktank the Energy Transitions Committee of the possible costs of producing blue hydrogen today. The range is $1.3-2.9/kg depending on the cost of natural gas and carbon capture and storage infrastructure. The Hydrogen Council estimates the cost of producing blue hydrogen in Europe at $2.1/kg today, falling to about $1.8/kg by 2030. The UAE has access to cheap natural gas, and the report notes that its CO₂ storage costs are likely to be lower than most locations. “Storage sites are formed b