WEBVTT
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(upbeat music)
On the journey
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towards net zero, and perhaps even beyond it,
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we're moving beyond the trade off
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of environment versus industry with low-carbon hydrogen
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that can fuel a high-powered future.
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Any hope of achieving the Paris Agreement
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and reaching net zero rests on replacing fossil fuels
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by renewable energy.
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However, renewable electricity alone
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will likely not be enough
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to satisfy the energy needs of all industries,
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and this is where low-carbon hydrogen will come into play.
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By 2050, low-carbon hydrogen demand
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is likely to top 350 million tons per annum,
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up from 19 million tons in 2020.
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Replacing the more established gray hydrogen
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in ammonia and methanol production
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oil refining with low-carbon hydrogen,
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and making it economically feasible to do so,
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is the first step;
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followed by targeting select industries
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such as steel, aviation, and shipping.
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By 2050, we estimate the low-carbon hydrogen market
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could represent a value of $600 billion to 1.1 trillion.
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On this trajectory, the moves that the industry players
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and governments make in the next decade will be crucial.
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The Middle East has already demonstrated high ambitions
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to undertake large-scale development
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of low-carbon hydrogen.
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As Middle Eastern governments progressively implement
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the net zero commitments,
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low-carbon hydrogen demand will surge locally,
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and the region is set
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to become one of the major exporting regions
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of low-carbon hydrogen and its derivatives,
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thanks to its natural resources,
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strategic location, and existing infrastructure.
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Additionally, regional players have the opportunity
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to localize part of the hydrogen value chain
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and attract new industries
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to manufacture products locally
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instead of solely exporting hydrogen.
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But the Middle East is not alone in the race
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to capture global market share.
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Chile, South Africa, Namibia, Morocco,
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and Australia in particular are also poised
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to produce low-carbon hydrogen competitively and at scale.
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The economics of this industry will continue
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to improve globally as underlying technologies mature
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and policy support increases.
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In the meantime, coordinated action across stakeholders is
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essential to de-risk projects,
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enable the development of the industry,
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and get ahead on the world stage.
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Where policies and regulations are supportive
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and capabilities are brought along the value chain
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through partnerships and early potential of taker engagement
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and the necessary technology, infrastructure
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and transportation solutions are put in place,
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there is an extraordinary opportunity.
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Lenders who are able
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to adapt their finance option expertise in coaching risk
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stand to benefit from a sizable early mover advantage
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by seizing it.
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And the nations where they will invest will win as well.
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Net zero isn't our target, it's our launchpad.
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We're driving beyond zero in the GCC
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by harnessing the power of low-carbon hydrogen.