Expert Insights with Frank Wouters, Chairman, MENA Hydrogen Alliance
Frank Wouters
Chairman
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MENA Hydrogen Alliance
Dii Desert Energy and the MENA Hydrogen Alliance have long advocated for the MENA region’s role as a global clean energy hub. How do you see Sustainable Aviation Fuel (SAF) and Power-to-Liquid (PtL) fuels fitting into the broader regional energy transition strategy?
We see several elements aligning from a regional and techno-economic perspective. The Gulf countries are major global transport hubs for the maritime and aviation industry, and that involves a lot of fuels. Combined with the great potential to produce low-cost clean fuels, this makes the region a natural hub for the production and distribution of clean maritime and aviation fuels. And Gulf actors are also major investors in clean fuel projects in the Mediterranean area, often in alliances with EU investors and technology providers. The close proximity to Europe is a major factor in Europe’s interest in close cooperation with the Mediterranean and Guld countries.
Hydrogen is central to both the energy transition and the production of eFuels. From Dii’s perspective, what policy and infrastructure priorities are needed to accelerate green hydrogen production for aviation (and beyond) across the MENA region?
At an early stage, supporting policies play an important role in shaping markets. Dii always advocates for TLC policies, i.e. policies that are transparent, long-lasting and certain. Our industry partners have invested heavily in clean fuel projects over the years and stand ready to invest. But they can only do that when the rules of the game are clearly set and there is certainty they won’t change on a whim.
Another important pre-requisite is enabling infrastructure, i.e. ports, pipelines, water supply, grids, storage facilities etc. They often require long lead times and involve several partners, especially in the case of common user infrastructure. More urgency is required for enabling infrastructure.
Given Dii’s advocacy for regulatory alignment and energy diplomacy, what steps are needed to harmonise standards between the EU, GCC, and North Africa to unlock cross-border trade in clean aviation fuels?
Several elements such as harmonized standards, carbon pricing, globally recognised certificates, a common finance framework and infrastructure development are crucial to shape markets for clean fuels. Ideally, the world quickly unities around common agreements, but the reality is that global consensus around carbon pricing mechanisms or harmonization around standards and certificates requires time and, in some cases, may not materialize at all. We would therefor advocate for regional alliances around certain topics, for example the development of clean aviation and maritime corridors that connect regions that can align on standards and carbon pricing.