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