Wedoany.com Report-Nov 4,  The Middle East has long been associated with the oil and gas industry and while hydrocarbon production is likely to continue playing a major role for decades, various countries in the region are seeking to position themselves as leaders in the transition to cleaner energy production.

The likes of Iran and Iraq – who have stewardship over the fourth and fifth largest oil reserves in the world – are likely to focus on maximising government revenue by increasing hydrocarbon production, but wealthier Gulf States, in particular the United Arab Emirates (UAE) and Saudi Arabia, have set ambitious net-zero targets (2050 for the UAE and 2060 for Saudi Arabia) and are rapidly scaling renewable energy generation capacity.

This shift is not only desirable to meet climate goals, but also a necessity for regional energy security. Currently, over 90% of the power generated in the Middle East originated from hydrocarbons– among the highest in the world. Rapidly growing populations, expanding industry as well as rising temperatures (necessitating greater cooling and water desalination capacity) has manifested in a dramatic increase in power demand across the Middle East. This shift is prompting governments to explore alternative energy generation solutions to ensure future energy security.

Significant regional solar projects are already operational, or are in development, with the UAE currently home to some of the world’s largest solar plants, including the 2 GW Al Dhafra Solar Park and the Mohammed Bin Rashid Solar Park with a planned capacity of 5 GW. Nuclear will also play a role with the UAE anticipating that the Barakah nuclear plant – the first nuclear power plant in the Arab world – will produce around 25% of the country’s electricity. Saudia Arabia is also making significant progress on its energy transition efforts. As part of its Vision 2030 initiative the Kingdom is targeting 130 GW of renewable energy capacity by 2030, with an aim of awarding 20 GW of new renewables projects annually.

Finally, with green hydrogen continuing to attract attention as a potential future fuel sources, the UAE and Saudi have both committed to investing in the technology. Saudi Arabia, in particular, is eager to take a lead with the Neom Green Hydrogen Company developing the world’s largest green hydrogen project at a cost of over US$8 billion. By 2025 the plant intends to produce up to 1.2 million tons of green ammonia per year. ADNOC is also stepping up investment in the UAE and globally of green and blue hydrogen facilities.