ABSTRACT
Hydrogen investments by Middle East and North Africa (MENA) countries may prove to be the most cost-effective response to the energy transition and compensate for lost time. They provide a compelling value proposition to MENA countries that are well endowed with hydrocarbon resources as well as those that are not. Five countries have already become early movers and developed progressive market entry strategies. Two UN Conference of the Parties (COP) summits are scheduled to be held in the MENA region over the coming two years, providing these countries with additional momentum. Furthermore, the recent unbudgeted revenue windfall caused by the Ukraine crisis should provide some MENA countries with the requisite resources to finance their hydrogen strategies. However, several mindset, industry, regulatory, and institutional challenges will need to be overcome if MENA countries are to capitalize on this once-in-a-lifetime opportunity. Chief among them is realistically assessing the size and nature of the opportunity, abandoning conventional oil and gas wisdom, building project development capacity in the private sector while structuring a healthy interface with the public sector, and engaging proactively with industry stakeholders in evolving hydrogen demand centers. Structuring regional projects of common interest will not only enable MENA countries to accelerate their plans to produce hydrogen commercially but also consolidate their position as leaders in the global energy transition.
