Founder and Director, Zest Associates | Sustainability strategy | Climate policy | Low carbon innovation | Green finance | Clean tech | Entrepreneurship | Hydrogen
I think the #hydrogen economy needs to start at home. Clean hydrogen can be a lynchpin for domestic decarbonization and clean industrial economic diversification in the Middle East. The International Energy Agency (IEA) estimates $1.2 trillion needs to be invested in the hydrogen economy by 2030, but the Hydrogen Council shows that only about 4% of that figure has reached Final Investment Decision. The issue is bankability, and that relies of securing a long-term off-taker. In the near term, I think it's more likely that domestic offtakers will sign contracts before foreign ones since high transport cost make imported hydrogen even less affordable. Use hydrogen close to where it's produced. Build domestic demand. Retrofit local industries to use clean hydrogen, then export the low carbon products. Less embodied carbon means exports won't be hit by EU carbon border adjustments and keeps added value in-country. Ammonia can bridge the export challenge, but it only makes sense if ammonia is what's really needed by the importer (not hydrogen). Let's use hydrogen as an opportunity for low carbon growth and economic diversification. Thank you First Abu Dhabi Bank (FAB) for the opportunity to share some thoughts at COP28 UAE.
In recent years, hydrogen has emerged as a crucial enabler to help the world reach Net Zero faster and speed up decarbonisation. On this journey, sustainable finance will be pivotal, particularly via smart investments in innovative projects. Our Managing Director and Global Head of Natural Resources, Gido van Graas, shed more light on this topic in a panel discussion today with Sidd Manjeshwar, Vice President, Corporate Treasurer and Investor Relations, Air Products and Chemicals, Inc.; Jeffrey Beyer, Founder and Director, Zest Associates; Atanu Das, Head, Project Finance at ACWA Power and Marc Luz, CFA, Head of Commercial - Green Hydrogen, Masdar. #FAB #Sustainability #PathwaytoCOP28 #COP28UAE #UniteActDeliver
