Core Insights - Middle Eastern hydrogen project developers are leveraging recent operational experience and existing capacity to compete in the low-carbon hydrogen/ammonia bidding markets in Asia and Europe [1][2] - The region has 67 low-carbon or renewable hydrogen/ammonia projects under development, with a total capacity of 9 million tons per year, of which 1.4 million tons per year are in advanced development stages [1] - The Middle East is expected to become a significant source of cheap low-carbon hydrogen due to the low-cost potential of wind and solar power generation combined with existing natural gas capacity [1] Group 1: Market Developments - In 2023, the Middle East achieved a breakthrough in low-carbon ammonia exports, with Egypt's Fertiglobe winning a hydrogen-derived product import tender from Germany's H2Global Foundation at €1,000 per ton, planning to supply a total of 397,000 tons to Northwest Europe by 2033 [1] - ADNOC delivered certified blue ammonia to Japan in May 2023, while Saudi Arabia's mining company exported 25,000 tons of blue ammonia to China in the same month [1] - The first clean ammonia shipment from the UAE to Japan occurred in July 2022, involving INPEX, IHI Corp., and Mitsui OSK Lines [1] Group 2: Cost and Production Insights - The S&P report indicates that the Middle East is forming a low-carbon hydrogen industry cluster, with production costs lower than those in the U.S. even after subsidies, currently accounting for 40% of global capacity under development [2] - By 2030, the Middle East's hydrogen production is expected to reach 17.6 million tons, with 800,000 tons available for export, increasing to 24.1 million tons and 2.4 million tons for export by 2040 [2] - Analysts predict that by the end of 2030, the Middle East will have 7.4 GW of online electrolyzer capacity and 700,000 tons per year of carbon capture and methane reforming production [2] Group 3: Project Financing and Collaborations - Oman’s ACME Duqm 100,000 tons per year renewable ammonia project secured ₹40 billion in financing from India's REC and signed a sales agreement with Yara International [3] - The Oman Green Energy (GEO) project, developed in collaboration with partners including Shell and OQ, signed an agreement in June 2023 with Hydrom to develop renewable hydrogen production facilities in Oman’s Al Wusta region [3]