UAE targets 1.4mn t/yr hydrogen output by 2031

Spanish Market: Hydrogen
05/07/23

The UAE is planning to produce 1.4mn t/yr of hydrogen by 2031, its minister of energy and infrastructure Suhail al-Mazrouei told state news agency WAM.

In the longer term, the country is targeting 15mn t/yr by 2050, al-Mazrouei said.

The UAE will be looking to set up two hydrogen "oases" by 2031 for hydrogen production from "clean electricity," WAM reported. Five such locations are to be established by 2050, and the country aims to set up a centre for hydrogen research and development by 2031.

The UAE will probably seek to achieve its hydrogen targets by utilising different production pathways. Ministry of energy and infrastructure under-secretary Sharif Al Olama said late last year that the country could utilise renewable power and water electrolysis as well as natural gas with carbon capture and storage and nuclear power. Al Olama said at the time that the UAE could produce between 14mn-22mn t/yr of hydrogen by 2050.

The UAE's hydrogen strategy will revolve around 10 key elements, including international collaboration, industrial growth, skills and education, green financing and infrastructure, the ministry's energy transition expert Dipak Sakaria had said in March.

While the UAE will focus mainly on export potential, there is ample scope for domestic hydrogen use, Sakaria said at the time. Abu Dhabi and the northern emirates have sizeable steel and aluminium manufacturing sites where hydrogen will be crucial for decarbonising, and hydrogen derivatives could also be used as a marine fuel for bunkering at the port of Fujairah, he said.

By Stefan Krumpelmann

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

20/10/26

EU lawmakers eye e-fuels, biofuels beyond 2035

Brussels, 20 October (Argus) — The EU should create a new category of vehicles powered by eligible zero-carbon fuels from 2030, under an informal deal agreed by the European Parliament's largest political groups. The proposals, which would allow certain new biofuel-powered vehicles in addition to e-fuel vehicles, seeks to amend the bloc's existing CO2 standards for cars. If enacted, the agreement would define eligible fuels until the end of 2032 as all fuels covered by the renewable energy directive that achieve at least 65pc greenhouse gas (GHG) savings. From 2033, eligible fuels for new cars would be limited to renewable fuels of non-biological origin (RFNBOs), along with biofuels and biogas produced from advanced and waste feedstocks listed in Annex IX Parts A and B of the renewable energy directive. Current EU legislation sets fleet-wide CO2 emissions targets for new passenger cars and vans at 93.6g/km through 2029, equivalent to a 15pc reduction from the 2021 baseline for cars. The European Commission has proposed replacing the current 100pc reduction target from 2035, effectively requiring 0g/km emissions, with a 90pc reduction target. "The phase-out of the internal combustion engine is now off the table," said Manfred Weber, chair of Parliament's largest group, the European People's Party (EPP). "At the same time, we remain committed to combining effective and ambitious climate protection with a competitive industry," Weber added. The EPP, together with Renew and the Socialists and Democrats (S&D) want GHG emissions from new cars cut by 87.5pc from 2035. Under the proposal, 7.5 percentage points of the reduction would come from green steel, while 5 percentage points would be unconditional. The deal also foresees 3 percentage points of reductions from low-carbon steel produced in Europe, rising to 7 percentage points from 2035. The agreement between lawmakers follows German-French proposals to retain a 90pc reduction target for CO2 emissions from new cars from 2035, while creating a new vehicle category powered by RFNBOs or EU-produced sustainable biofuels and biogas derived from advanced feedstocks, waste and residues. German Green MEP Michael Bloss criticised the lawmakers' proposal for treating crop-based biofuel-powered cars as climate-neutral until 2032. "Even after 2035, one in eight new cars will still be allowed to have a combustion engine, with a large proportion of these offset against green steel, which already counts towards emissions trading targets," Bloss said. European renewable ethanol association ePure said the proposed two-year eligibility period for vehicles running exclusively on sustainable biofuels amounts to little more than "window dressing". "It is far too short to provide the investment certainty needed or to justify the significant logistical adjustments required throughout the value chain," ePure secretary-general Laurent Donceel said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Fremsyn secures funding for Danish biomethane expansion

20/10/26

Fremsyn secures funding for Danish biomethane expansion

London, 20 October (Argus) — Danish biogas company Fremsyn is buying and expanding a biogas plant in Vegger, northern Denmark, with biomethane deliveries from the facility expected to reach up to 48 GWh/yr by the end of 2027 under a long-term supply agreement with a Swiss customer. Fremsyn will modernise Denmark's oldest biogas plant, with biogas production to increase to 52 GWh/yr from 37 GWh/yr. The company will also build an upgrading facility to produce biomethane and a new grid connection. The Vegger plant currently uses a mixed feedstock of mostly manure — 75pc — with waste and energy crops. The project will include a carbon capture unit with capacity of 5,000 t/yr CO2, and an electrolyser to convert the captured CO2 into e-methane using hydrogen. The full project is expected to be complete in 2028. International bank Nordic Environment Finance Corporation is paying for the project with a €6mn ($6.74mn) financing agreement. Fremsyn's trading arm Biogem will receive the financing and certify the biomethane with renewable gas guarantees of origin. By Kasia Donnell Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Japan's KHI starts building hydrogen liquefaction plant

19/10/26

Japan's KHI starts building hydrogen liquefaction plant

Tokyo, 19 October (Argus) — Japan's Kawasaki Heavy Industries (KHI) started construction of a hydrogen liquefaction facility with a capacity of 50 t/d at the Kawasaki LH2 terminal in Ogishima, Kawasaki, Kanagawa prefecture, the company said today. The initiative forms part of the demonstration phase of the development of a liquid hydrogen supply chain. The project forms part of Nedo's Green Innovation Fund programme for the development of a large-scale hydrogen supply chain. The plant is scheduled for completion by the end of 2028 and is intended for commercial scale demonstration from 2030. The facility will be located within the Kawasaki LH2 terminal being developed by Japan Hydrogen Energy. Its core equipment — a hydrogen liquefier, or cold box — will cool hydrogen to –253°C to convert it into liquid form. The project aims to demonstrate technologies needed for a commercial scale liquefied hydrogen supply chain. The facility's capacity of 50 t/d is more than three times larger than Japan's biggest publicly announced plant of 15 t/d and is expected to achieve world class liquefaction efficiency compared with facilities of similar size, the firm said. The facility's capacity is also considered "large by global standards", a company spokesperson told Argus. Nedo's Green Innovation Fund project seeks to establish a large scale hydrogen supply chain through developing hydrogen carriers, receiving terminals and other infrastructure, while creating demand via hydrogen fired power generation demonstrations. The initiative targets hydrogen supply costs of ¥30/Nm³ ($0.19/Nm³) by 2030 and below ¥20/Nm³ by 2050 — levels intended to compete with fossil fuels. The new facility is expected to boost efficiency and cut costs across the liquefied hydrogen chain, the company said. The company is considering further scale-ups of liquefaction facilities in response to future demand growth and is also targeting opportunities in major hydrogen supply regions such as Australia and the Middle East, a company spokesperson told Argus . By Fumito Nagase Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Germany's Merz says France deal ends EU ICE phase-out

16/10/26

Germany's Merz says France deal ends EU ICE phase-out

Brussels, 16 October (Argus) — The EU's planned phase-out of new internal combustion engine (ICE) vehicles by 2035 is "history", German chancellor Friedrich Merz said today, citing a new Franco-German agreement on future CO2 standards for cars. A draft text of the German-French proposals circulating would retain the EU's 2035 target of a 90pc reduction in CO2 emissions without offsetting, while allowing greater use of renewable fuels. The text indicates support for a new category of zero-emission vehicles powered by renewable fuels of non-biological origin (RFNBOs), sustainable EU-produced biofuels and biogas from advanced feedstocks, waste and residues listed in Parts A and B of Annex IX. "We would also enable the use of biofuels as a means of achieving carbon neutrality," Merz said, arguing that technological neutrality is needed to achieve net-zero CO2 emissions. Merz said the agreement has backing from other member states, but needs to pass the EU legislative process. The proposal was criticised by German Green MEP Michael Bloss, the group's negotiator on car CO2 standards. "Just when many people want to buy an electric car, a further weakening of EU rules creates uncertainty and hesitation," Bloss said. "China has already gone electric, and that is precisely where European manufacturers are losing substantial market share." German EPP MEP Peter Liese welcomed the proposal, saying scrapping the ban on ICE cars can be done "without missing our climate targets." Use of "climate-friendly" fuels such as E20 should be expanded, he said. Liese backed the creation of a dedicated vehicle category for climate-friendly fuels, including e-fuels. He said there is broad support in the European Parliament for the European Commission's proposal to allow 7pc green steel to count towards compliance targets. Industry group European Biodiesel Board (EBB) welcomed the agreement but wants clarity on fuels eligibility. "Leaving out any RED-compliant feedstocks would hamper solutions that are already contributing to decarbonisation," said EBB secretary general Xavier Noyon. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Co-processing SAF faces technical, cost, policy hurdles

16/10/26

Co-processing SAF faces technical, cost, policy hurdles

London, 16 October (Argus) — Co-processing bio feedstocks in conventional oil refineries to make sustainable aviation fuel (SAF) has reached commercial scale, but further growth will be challenging and costly, attendees heard at the IATA World Sustainability Symposium in Brussels this week. Around one third of Europe's oil refineries co-process feedstocks like used cooking oil (UCO) alongside crude to make a fraction of sustainable fuels for European mandates, FuelsEurope fuels executive Sebastian Hirsz said. This reflects modest early SAF demand, and rising mandates strengthen the case for investing in more capacity, he said. Co-processing ratios are capped by fuel standards such as ASTM, but pending more testing these limits could be eased over time, he said. Fragmented policy on feedstocks is a barrier because EU member states have written different co-processing rules into national law, so a feedstock allowed in one country may be blocked elsewhere, Hirsz said. The rules need "tidying up" to unlock further investment, he said. Co-processing also faces technical challenges, said Spanish refiner Moeve's senior vice president for strategy and international growth Rik Sneep. Refineries can typically cope with 5-10pc bio feedstock without problems, but blending higher ratios adds acidity that requires upgrades to the hydrocracker or metallurgy adjustments, he said. The business case varies by refinery. Upgrading older or challenging brownfield sites can see costs spiral to "two, three, or four hundred million," Sneep said. Some refineries will be "really well placed to make upgrades at relatively low cost," but for others it may be more economical to build greenfield biorefineries, he said. Refining bio feedstocks introduce more oxygen in the system and need significantly more hydrogen, which adds costs, Sneep said. Feedstocks like used cooking oil (UCO) are collected from diverse suppliers, meaning they are inherently inconsistent and challenging to work with, he said. Refineries may employ other techniques to trim lifecycle emissions of their fuels, such as co-processing a share of synthetic e-crude made with renewable hydrogen and captured CO2, said FuelsEurope's Hirsz. Using renewable hydrogen in refineries and biorefineries is also a major lever to trim the lifecycle emissions of SAF, he said. This could apply to co-processed SAF or neat biofuel SAF. The EU's SAF mandate works on a volume basis and does little to encourage SAF producers to cut emissions beyond meeting the minimum eligibility. Companies disagree about how best to incentivise renewable hydrogen in SAF. One option is categorising SAF made with renewable hydrogen as synthetic SAF (e-SAF). Refiners have urged the EU to allow this, but pure-play e-SAF companies say it would undermine their projects. The European Commission is analysing this 'e-HEFA route' but has reached no decision, said EU mobility and transport department head of aviation policy Eddy Liegeois. Such a policy would grow the hydrogen industry and help scale e-SAF, and help lower biofuels lifecycle emissions, but commission is wary of jeopardising "genuine" e-SAF projects, he said. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more