The Middle East and Australia can be game-changers in the “green” hydrogen industry. The two regions of the world have a massive potential according to an analysis by energy consultancy Wood Mackenzie.
Green hydrogen relies on renewable energy in its production instead of fossil fuels. This represents a clean power source for several industries including manufacturing and transportation. But, the technology is expensive and the transportation process is complicated.
However, according to Wood Mackenzie’s report, the demand for low-carbon hydrogen is on the rise. This includes green hydrogen, and several countries will announce plans to build hydrogen exporting capabilities. In Australia, this kind of project makes up to 60% says the same report.
Australia vs. the Middle East
Australia and the Middle East are close to becoming major importers in Northeast Asia and Europe, according to Prakash Sharma, the consultancy’s head of markets and transitions in Asia-Pacific.
“The proximity is going to help … Australia is close to the Northeast Asian market but also the Middle East could go anywhere in both directions — it could go to Europe and it could also potentially go to the Northeast Asia market,” Sharma told CNBC on Thursday.
