London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Green hydrogen could reduce carbon transition risk but GCC will remain exposed: Moody’s

Green hydrogen could reduce carbon transition risk but GCC will remain exposed: Moody’s

Renewable energy projects in the Gulf region are facing “significant delays” that could further slow down the production and export of green hydrogen, according to Moody’s Investors Service.
A new report by the firm warns that while countries are working on producing zero-carbon green hydrogen, as well as low-carbon blue hydrogen, achieving this on a large scale will be “challenging” in the next few years.

The firm highlighted Saudi Arabia, Oman, and the UAE as particularly well-placed to produce and export these energy sources, given their access to cheap renewables, such as solar power, and expertise in water desalination.

It stated: “Auctioning processes for renewable energy projects in the GCC still face significant delays, which derail production targets.

“The development of the renewable energy sources that would power the production of green hydrogen also faces hurdles.”

The report flagged up increases in raw material, commodity, freight and energy prices following the economic recovery in 2021, as pushing up renewable energy prices.

“In addition, more severe and frequent weather events because of climate change could further disrupt production and damage assets,” it said,

The report did highlight the progress being made in green hydrogen projects in the region, including the Helios Green Fuels Project in Saudi Arabia, which has 2 gigawatt electrolyser capacity, and the Neom Green Hydrogen Company, in collaboration with ACWA Power Management and Investments One Ltd, which aims to produce 1.2 million tonnes of green hydrogen-based ammonia per year based on 650 tons of green hydrogen from 4GW of renewable energy.

The document also expressed concerns that while green hydrogen production could “mitigate the negative economic and fiscal impact of lower global oil demand and prices”, it will take time.

“Only green hydrogen will also somewhat reduce GCC countries’ heavy reliance on hydrocarbons and as such their underlying credit exposure to longer-term carbon transition risks. Reducing the economic and fiscal dominance of the hydrocarbon sector in the GCC will only be a gradual process,” said the report.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×