'Fuel of the future': Gulf countries, including the UAE, Saudi Arabia and Oman, bet on 'green' hydrogen

DUBAI: After riding an oil and gas boom for decades, Gulf states are eyeing "green" hydrogen as they try to transition their economies to non-oil based revenue sources and ease the climate crisis with one stroke.

Oil producers Saudi Arabia, the United Arab Emirates and Oman are investing heavily in the climate-friendly fuel in a search for alternative revenues to crude and gas.Ads by

Green hydrogen, which is the hydrogen created when renewable energy electrolyses water, appears to solve many problems: it is low-polluting and has widespread potential uses, which could make it lucrative and planet-saving at the same time.

But the fuel, which currently makes up less than one percent of total hydrogen production, is not yet commercially viable and needs a major scaling-up of renewable energy sources - a process that could take years.

Despite this, Gulf nations sense an opportunity to remain major players in energy markets as oil revenues fall.

Most hydrogen is produced from polluting fossil fuels, but green hydrogen is extracted from water using renewable energy such as wind, solar and hydropower.

While fossil fuels create harmful greenhouse gases when they burn, hydrogen emits only water vapour. It is touted for potential use in high-polluting industries such as transport, shipping and steel.