The Future of Trade

With the volatility in the oil market, the norm of $60-$70 per barrel is being replaced. Despite present uncertainties, the future confidently points to $80+ per barrel, given a strong oil demand and a limited supply pipeline.

Investments in hydrogen and low-carbon fuels and gases soared to a substantial $27 billion, reflecting the growing interest in these cutting-edge solutions. The field of carbon capture and storage (CCS) and carbon removal also attracted investments totalling $11 billion, underlining the increasing importance of carbon management strategies in the global energy landscape.

The hydrogen sector has captured significant attention, with projections indicating a varied picture for clean hydrogen usage by 2050. Estimates range from 45 million tonnes per year to 450 million tonnes. Energy Intelligence suggests a promising decline in the cost of hydrogen (LCOH) by 2030. As we navigate this decade, the emphasis will be on projects with clear local demand, reflecting a pragmatic approach to hydrogen's role in the global energy transition.

Ahead of COP28, the UAE National Energy Strategy unveiled its updated energy strategy, aiming to triple its renewable energy contribution in seven years, with an investment of up to $54 billion. The strategy outlines new emissions reduction goals where a portion will come from revised power mix targets, which sees an enduring role for natural gas with substantial growth in renewables by 2050.

The National Hydrogen Strategy 2050 is aligned with the We the UAE 2031 vision. It contains targets like a 25% reduction in emissions in “hard to abate” sectors, production of 1.4 million tonnes of hydrogen per year, and the launch of an extensive hydrogen R&D centre.