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ADCCI report highlights Abu Dhabi’s growing role in the global hydrogen economy

Abu Dhabi is leading the UAE's hydrogen ambitions, with a target of producing 1.4 million tonnes of low-carbon hydrogen annually by 2031. 

[Source photo: Krishna Prasad/Fast Company Middle East]

Abu Dhabi is emerging as one of the world’s most strategically positioned regions in the developing hydrogen economy, according to the Abu Dhabi Chamber of Commerce and Industry’s (ADCCI) June 2026 report, Abu Dhabi’s Positioning in the Hydrogen Economy.

Prepared by the Chamber’s Business Intelligence Department, the report says the emirate is shifting from hydrogen policy commitments to large-scale implementation, even as parts of the global hydrogen market face slower progress due to policy uncertainty.

According to the report, the UAE’s abundant solar resources, advanced electricity infrastructure, industrial capabilities, and competitive financing conditions position it as one of the world’s lowest-cost producers of low-carbon hydrogen and ammonia by 2030. This is expected to support exports to key markets, including the European Union, Japan, and South Korea.

The report identifies Abu Dhabi as the driving force behind the UAE’s hydrogen strategy, with a target of producing 1.4 million tonnes of low-carbon hydrogen annually by 2031.

It also highlights the growing potential of hydrogen derivatives, including green ammonia, methanol, synthetic fuels, and sustainable aviation fuel (SAF), which are considered more commercially viable in the near term.

Several projects are already underway across the hydrogen value chain, including initiatives focused on green hydrogen-based methanol and SAF production, e-methane, bunkering infrastructure, and synthetic fuels.

According to ADCCI, these projects are expected to expand export opportunities, create jobs, and support the UAE’s emissions reduction goals.

The report identifies long-term customer, or offtake, agreements as one of the biggest challenges facing hydrogen projects globally. While relatively few low-carbon hydrogen projects have secured confirmed buyers, Abu Dhabi is making progress through customer-linked initiatives.

Among them is the Emsteel-Masdar green steel pilot, described as the first hydrogen-based steel project in the Middle East and North Africa. The project is already operational and has signed agreements to supply green steel for sustainable construction projects.

Beyond hydrogen production, the report identifies significant opportunities for Abu Dhabi to manufacture and export hydrogen technologies and equipment.

Industrial hubs such as Kezad and the logistics infrastructure at Khalifa Port are expected to strengthen the emirate’s position as a regional manufacturing and re-export hub. By 2029, this could create export opportunities spanning hydrogen production equipment, port infrastructure components, and hydrogen blending technologies.

The report also cites partnerships, such as the agreement among Adnoc, John Cockerill Hydrogen, and Strata Manufacturing to produce electrolyzers in the UAE, as further evidence of the country’s growing role in the global hydrogen supply chain.