Emerging

Hydrogen
Economy in
H2: the UAE

Risk Management
Instructor: Dr. Vikach Ramiah
Nora Soualhi
Spring 2023
Table of Contents

1 Introduction
Hydrogen
to Risk Identification
5

2 Hydrogen Economy
Overview in the
Risk Mitigation
6
UAE

3 PESTEL Analysis Monitoring

7
4 SWOT Analysis
Introduction to Hydrogen
Grey Hydrogen: Green Hydrogen:

Feedstock: Natural gas. Feedstock: Renewable

Process: Steam methane Electricity + Water.
reformation (SMR). Process: Electrolysis.
Cost (USD/kg): 1.43 – 1.69. Cost (USD/kg): 1.16 – 3.32.

Key Players: ADNOC, Key Players: Masdar, DEWA.

EMGAS.

Blue Hydrogen: Pink Hydrogen:

Feedstock: Natural gas. Feedstock: Nuclear Electricity
Process: Steam methane + Water.
reformation (SMR) + Carbon Process: Electrolysis.
Capture and Storage (CCS).
Cost (USD/kg): 1.80 – 2.53. Key Players: Emirates Nuclear
Energy Company, Electricite
Key Players: ADNOC, de France, and Khalifa
Mubadala. University.
Hydrogen Value Chain
Hydrogen Economy Overview in
UAE
Potenti Dema
al nd
UAE is well positioned to be a leader in Global clean hydrogen demand:
blue and green hydrogen production
 ~350 Mtpa global demand +$400B
thanks to its:
market potential by 2050 (2⁰C
 High solar energy potential. pathway scenario).

 Low cost of natural gas.

Target Partnersh
UAE target 25% of market share in ips UAE alliances that advocate clean
key import countries: hydrogen:

 Europe.  Abu Dhabi Hydrogen Alliance:

ADNOC, MUBADALA, ADQ,
 Japan.
Department of Energy.
 South Korea.  National Hydrogen Technical
Committee: MASDAR, DEWA, EWEC,
PESTEL Analysis

- Investment - Public - Carbon emission

- Government - Lack of technical
opportunities. awareness and - Localization of reduction.
support (UAE standards.
- Diversification acceptance (youth electrolyzers. - Intensive water
Hydrogen - Lack of policy
of economy. conferences, eg: - Research and usage.
Leadership alignment in key
Aiesec, university development
Roadmap 2021, importing
talks). and innovation
Dubai Clean countries.
- Job creation. centers (Siemens
Energy Strategy
Energy
2050).
Innovation
- Stable
Center).
environment.
- Infrastructure
development.
SWOT Analysis
Strengths: Weaknesses:
- Strategic geographic location for exports to Asia and - Non aligngment of policies in main impoting countries of
Europe. Hydrogen.
- Proven experience in trading energy commodities. - Market ambiguity regarding the evolution of clean
hydrogen's cost competitiveness.
- Well-established infrastructure for hydrogen offtakes.
- Current low demand and market share.
- High potential for producing blue hydrogen.
- Technological challenges to optimize capacity factors and
- Large and low cost natural gas. efficiency for green hydrogen.
- Abundance and low cost of solar energy. - Intensive use of precious metals in electrolyzers technology
- Strong collaboration between international and public- (localization development).
private companies.

Opportunities:
SW
- Cover local energy demand with sustainable fuels.
- Domestic hydrogen application.
OT Threats:

- Potential for localizing technologies namely,electrolyzers - Inequitable distribution of potential may drive regional
and Carbon capture and storage technology (“Make it in the peers (for example, Saudi Arabia) to compete rather than
Emirates” initiative). collaborate.
- Foreign direct investments. - Hydrogen hazards leading to potential explosions.
- Reducing GHG emissions.
- Development of carbon pricing mechanism.
- European energy bourse EEX launched HYDRIX, first
green hydrogen index.
Risk Identification
Policies and
Economic
Regulations
Risk
Risk

Supply Chain Market Risk

Risk

Technology
Social Risk Risk

Environme
ntal Risk
Economic Risk and Treatment
Funding Treatment
Risk
 Leverage funding from H2 Global, Green
Fund, and KFW, or crowdfunding.
 Projects led by led by credible industrial
sponsors and developers (Siemens Energy,
Bloom Energy, Air Liquide).
 Introduce long-tenor contracts for difference
(CFDs) to help bridge the green premium that
exists between low- or no-emission products
and their grey alternatives such as in
REPowerEU plan.
Economic Risk and Treatment
LCOH Risk Treatment

 Introduce Hydrogen investment tax credit and

production tax credit similar to the one
included in the IRA.
 Accelerate the implementation of carbon
pricing mechanism to render clean hydrogen
cost competitive compared to fossil fuels.
 Circular economy for rare metals used in the
production of electrolyzers could reduce
greatly CAPEX, hence LCOH.
Policies and Regulations
Unaligned Policies Treatment

 Clear communication and collaboration to define

common technical standards for blue and green
Sout hydrogen.
Japa h  Define safety standards for clean hydrogen
EU
n Kore throughout the value chain.
a  IEA and IRENA could act as mediators between the
different countries to address the key technical
issues and get transparency on the policies for clean
hydrogen.
 ADNOC could address the key issues during
COP28 to have a clear insight from key importing
countries.
Market Risk and Treatment
Risks Treatment

 Monitor oil prices as research showed

an interconnectedness between clean
 Fluctuating demand of hydrogen and oil as customers tend to
invest in clean energy when oil prices
clean hydrogen.
increase.
 Competition risk with  Strategic partnerships with Saudi Arabia
and Oman for market expansion and
neighboring countries.
continuous innovation in research and
development.
Health & Safety Risk and
Treatment
Hydrogen Hazards Treatment

 Compliance to safety standards and

regulations for design, construction, and
operation of hydrogen fueling stations.
 Quality control and inspection
procedures for manufacturing and
installing hydrogen tanks.
 Safety training, and emergency
response drills enhance preparedness
and response capabilities.
Risk Register: Economic
Risks

Color Code: 1-3 5-9 10 - 12 15 - 25

Risk Register: Market Risks
and Political and Regulations
Risks
Risk Register: Technology
and Infrastructure Risks
Risk Register: Social and
Environmental Risks
Risk Register: Supply Chain
Risks
Risk Matrix
Risk Mitigation: Economic
Risks
Risk Mitigation: Market Risks
and Policies and Regulations
Risk Mitigation: Technology
and Infrastructure Risks
Risk Mitigation: Social Risks
Risk Mitigation: Supply Chain
Risks
Review and Monitoring
References
[1] World Energy Council (Ed.). (2013). World Energy Scenarios Composing energy futures to 2050. Retrieved from
https://www.worldenergy.org/assets/downloads/World- Energy-Scenarios_Composing-energy-futures-to-
2050_Executive-summary.pdf

[2] Iea. (2020, October 13). World Energy Outlook 2020 – Analysis. Retrieved January 02, 2021, from
https://www.iea.org/reports/world-energy-outlook-2020

[3] Sui, J., Chen, Z., Wang, C., Wang, Y., Liu, J., & Li, W. (2020, July 13). Efficient hydrogen production from solar
energy and fossil fuel via water-electrolysis and methane- steam-reforming hybridization. Retrieved January 02, 2021,
from https://www.sciencedirect.com/science/article/abs/pii/S030 6261920309211

[4] Panzone, C., Philippe, R., Chappaz, A., Fongarland, P., & Bengaouer, A. (2020, February 25). Power-to-Liquid
catalytic CO2 valorization into fuels and chemicals: Focus on the Fischer-Tropsch route. Retrieved January 02, 2021,
from https://www.sciencedirect.com/science/article/abs/pii/S221 2982019309916

[5] Highly Selective Hydrogenation of CO2 to Ethanol via Designed Bifunctional Ir1–In2O3 Single-Atom Catalyst.
(n.d.). Retrieved January 02, 2021, from https://pubs.acs.org/doi/10.1021/jacs.0c08607
References

[6] Press Release. (2020, March 10). Retrieved January 02, 2021, from
https://www.isi.fraunhofer.de/en/presse/2019/presseinfo- 24-klimaneutrale-energie-aus-power-to-x-marokko.html

[7] "Power to X": What role could Morocco play in this new paradigm? (2020, July 13). Retrieved January 02, 2021,
from https://infomineo.com/power-to-x/

[8] Drünert, S., Neuling, U., Zitscher, T., & Kaltschmitt, M. (2020, August 03). Power-to-Liquid fuels for aviation –
Processes, resources and supply potential under German conditions. Retrieved January 02, 2021, from
https://www.sciencedirect.com/science/article/abs/pii/S030 6261920310904