The Gulf Can Anchor the Next Phase of the Hydrogen Economy
Green hydrogen was intended to be the ultimate solution for decarbonization. It is a clean and versatile fuel capable of powering heavy industry, transport, and electricity without emissions.
However, as industry leaders discussed at the panel titled “The Emerging Role of Gulf Nations in the Global Hydrogen Economy” during ADIPEC 2025, progress has been slower than anticipated. Ambitious gigawatt-scale projects have mostly remained in planning stages, hindered by the absence of committed buyers and uncertain regulations.
“There is a paradox of everyone wanting green hydrogen and energy transition, but nobody wanting to pay for it,” said Luc Koechlin, CEO of EDF Middle East. “You cannot unlock the green hydrogen industry without subsidies or regulation.”
Koechlin also pointed out that the slowdown affects even markets once considered pioneers. “We’ve seen cancellations like the Clean Hydrogen Power Generation tender in South Korea, and delays in global frameworks,” he added.
The Gulf Advantage
Despite the global slowdown, Gulf nations see significant opportunity. With abundant solar and wind resources, large expanses of land, and investor-friendly policies, the region is positioning itself as a world leader in green hydrogen production.
Key Challenges
- Lack of firm buyers for green hydrogen
- Unpredictable and delayed regulatory frameworks
- Dependence on subsidies and policy support
Regional Strengths
- Low-cost renewable energy sources
- Clear and supportive government policies
- Large land availability for renewable infrastructure
The Gulf’s combination of natural resources and policy environment could make it a central hub in the emerging global hydrogen economy.
“The Gulf nations are strategically placed to become the world’s green hydrogen hub,” industry experts noted at ADIPEC 2025.
Author’s summary: The Gulf region’s plentiful renewable resources and favorable policies offer a promising foundation to advance green hydrogen, despite current global industry delays.