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Global hydrogen demand reached 97Mt in 2023, an increase of 2.5% compared to 2022. (Image source: Canva)

Energy

IEA calls for stronger hydrogen policies from stakeholders

According to the International Energy Agency (IEA), while investment and projects in low-emissions hydrogen are increasing, policies to stimulate demand in key sectors are required to accelerate deployment

These are the findings published in the organisation’s Global Hydrogen Review 2024, an annual publication that tracks production and demand worldwide in a bid to inform energy stakeholders on the status and future prospects of low-emissions hydrogen.

The research shows that a wave of new projects indicates the growing momentum around low-emissions hydrogen despite challenges such as regulatory uncertainties, persistent cost pressures, and a lack of incentives to accelerate demand from potential consumers. In the last 12 months, the number of projects that have reached final investment decision has doubled – this would increase today’s global production of low-emissions hydrogen fivefold by 2030. The total electrolyser capacity has reached final investment decision now stands at 20GW globally.

However, the IEA reports hesitancy from developers due to a lack of clarity on government support before making investments. As a result, most potential projects are still in planning or early-stage development, and some larger projects face delays or cancellations.

“The growth in new projects suggests strong investor interest in developing low-emissions hydrogen production, which could play a critical role in reducing emissions from industrial sectors such as steel, refining and chemicals,” remarked IEA executive director Fatih Birol. “But for these projects to be a success, low-emissions hydrogen producers need buyers. Policymakers and developers must look carefully at the tools for supporting demand creation while also reducing costs and ensuring clear regulations are in place that will support further investment in the sector.”

Hydrogen demand against production

Further key findings from the report include a notable gap between government goals for production and demand. According to the research, production targets set by governments add up to as much as 43mn tonnes per year by 2030, but demand targets only total 11mn tonnes by 2030. While some government policies are already in place to stimulate demand, the progress made in the hydrogen sector so far is not sufficient to meet climate goals.

Moreover, as a nascent sector, low-emissions hydrogen still faces technology and production cost pressures, with electrolysers in particular slipping back on some of their past progress due to higher prices and tight supply chains. A continuation of cost reductions relies on technology development, but also optimising deployment processes and moving to mass manufacturing to achieve economies of scale.
Cost reductions will benefit all projects, but the impact on the competitiveness of individual projects will vary. Industrial hubs – where low-emissions hydrogen could replace the existing large demand for hydrogen that is currently met by production from unabated fossil fuels – remain an important untapped opportunity by governments to stimulate demand, according to the IEA.

Hydrogen potential in emerging markets

Regarding emerging markets and developing economies (EMDEs), the report notes that such regions (particularly Africa and Latin America) hold significant potential for low-cost, low-emissions hydrogen production.

To unlock this potential, the IEA advises, governments of advanced economies and multilateral development banks should look to provide targeted support such as grants and concessional financing in order to address key challenges that are inhibiting project developers in these countries – most notably, around financing. Developing these projects, the research reports, can help cover domestic needs, reduce import dependencies and potentially enable the export of hydrogen or hydrogen-based products.

The IEA is not the only organisation that has noted the significant opportunities that hydrogen can offer Africa. Click here to discover why Synergy Consulting sees the emerging hydrogen economy as a key element in the sustainable future of southern Africa.

A picture of Sophie Borgne. (Image source: Schneider Electric)

Water

Schneider Electric's digital solutions transform water infrastructure in the Middle East

In an exclusive interview, Sophie Borgne, Global Segment President for Water and Waste Water at Schneider Electric, shared insights on how the company is addressing water infrastructure challenges in the Middle East.

The region faces unique difficulties due to water scarcity and ageing infrastructure, but Borgne highlighted that local utilities are pioneering innovations to tackle these issues effectively.

Borgne emphasised that “out of the top 15 countries in terms of water stress, nine are in this region,” which puts immense pressure on utilities to manage demand. She noted that while some water infrastructure is in need of an upgrade, utilities here are “walking the talk and pioneering new solutions” such as large-scale desalination, a technology the Middle East has led the world in deploying.

Schneider Electric is playing a key role by introducing digital tools to optimise these processes. Borgne described how the company leverages artificial intelligence and digital twin technology to improve operational efficiency and reduce risks. “A lot of this technology is applied to predictions... by using digital twin technology you actually remove a lot of risk from your physical infrastructure,” she explained. This approach allows utilities to simulate various scenarios before making physical adjustments, reducing the likelihood of costly failures.

Efficiency is at the heart of Schneider Electric’s solutions. Borgne highlighted that the use of AI in process optimisation is reducing both energy consumption and operational costs. In desalination plants, for instance, energy use is a significant challenge. By analysing data patterns and optimising operational parameters, AI can help “decrease the energy used” in desalination, leading to substantial cost savings. Additionally, predictive maintenance powered by AI ensures smoother operations and reduces unplanned downtime, further boosting the efficiency of water infrastructure.

The use of AI extends to improving desalination plant performance. According to Borgne, “artificial intelligence works with taking a lot of fast data and looking into those data, finding repetitive patterns,” which helps operators decrease energy consumption—a major challenge in desalination, where energy usage is particularly high. She shared that one customer on the Red Sea achieved “20% operational efficiency” after deploying Schneider’s digital solutions, demonstrating the significant impact of these technologies.

Borgne also underscored the importance of cybersecurity in water infrastructure. “The cyber risk in water infrastructure is pretty high,” she said, but commended the region’s focus on implementing stringent cybersecurity measures to protect vital resources.

Looking ahead, Borgne urged the industry to continue innovating and prioritising not just energy efficiency but also sustainability. “I really encourage everyone to think in terms of carbon footprint as well,” she concluded, pointing out that sustainable solutions must drive future decisions in the water sector.

This move will enhance innovation and allow both companies to explore new industry and geographic opportunities. (Image source: Caterpillar)

Construction

Caterpillar and Trimble expand construction tech partnership

Caterpillar and Trimble have extended their long-standing joint venture to expand the availability of grade control solutions in the construction sector.

Since the partnership began in 2002, Caterpillar Trimble Control Technologies (CTCT) has focused on improving jobsite safety and productivity through advanced grade control products.

The new agreement broadens the distribution of interoperable grade control solutions, making them available through a flexible platform for Caterpillar, Trimble, and other equipment manufacturers.

Growing networks

This move will enhance innovation and allow both companies to explore new industry and geographic opportunities.

For Caterpillar customers, the expanded offerings will provide access to factory-installed grade control systems, the option to upgrade Cat Grade 3D systems at any point during the machine lifecycle, and additional aftermarket and digital solutions through Cat dealers.

Trimble customers will benefit from continued support for mixed-fleet systems via the SITECH dealer network and increased access to grade control solutions through the Trimble Construction One platform, further extending Trimble’s construction technology capabilities.

This agreement strengthens the collaboration between the two companies and expands their reach in delivering advanced solutions to the construction industry.

“Trimble's Connect & Scale strategy has created an ecosystem that empowers customers across both the physical and digital worlds. The next phase of our joint venture will drive innovation in grade control technology to expand the industry opportunity with localised and differentiated solutions while improving technology interoperability,” said Rob Painter, president and CEO of Trimble. "This partnership underscores a joint commitment to connect the office and the field throughout the design-build-operate lifecycle of construction projects.”

"Caterpillar and Trimble have a long history of innovating together,” said Tony Fassino, Caterpillar Construction Industries group president. “We are proud of what we’ve developed to help customers optimise their operations, including grade control. Today’s announcement is a continuation of this collaboration. With a focus on accelerating this leading-edge technology, we are committed to making it easier for customers to acquire and adopt our solutions across Cat and mixed fleets alike."

Representatives from Liebherr-Components, Liebherr Mining and BGG. (Image source: Liebherr)

Mining

New partnership explores green ammonia for low-emission power

Liebherr has announced that its mining and components product segments will collaborate with Bruno Generators Group (BGG) to investigate low emission power generation through the use of green ammonia as fuel

Having already investigate ammonia as a power source for dual-fuel internal combustion engines, Liebherr will now pool its expertise with BGG, a company that specialises in the design, development and production of power generators, battery energy storage systems and mobile energy solutions.

“We’re thrilled to be working with BGG in this incredibly exciting project. Their innovative mindset and tracked development and delivery of low emission solutions are a perfect match for us as we work towards our zero emissions targets,” remarked Oliver Weiss, executive vice president, R&D, engineering and production, Liebherr-Mining Equipment SAS. “When our combustion engines business unit saw promising results from ammonia as a low and zero emission power source after multiple test bench runs, we were excited to see how we could capitalise on this to provide even more ways our customers can pursue zero emissions.”

Sustainable solutions

Renato Bruno, chief executive officer, BGG, added, “We are very proud of partnering and joining forces with Liebherr Mining in this project. Together, we share a common vision with an uncompromised commitment to sustainability, and we strive to lead the industry in responsible practices.

“This partnership represents an incredible milestone in our pursuit of sustainable solutions for the benefit of our customers in the mining segment. Sharing and blending our respective expertise will further enhance and naturally boost our innovation mindset, accelerating our journey toward a net zero future.”

The new hub at SPARK was officially inaugurated by Emerson’s leadership team. (Image source: Emerson)

Manufacturing

Emerson opens new manufacturing hub in Saudi Arabia

Emerson has inaugurated a new manufacturing and innovation hub at King Salman Energy Park (SPARK) as part of its expansion in the Middle East

The 140,000-square-foot facility consolidates automation technologies such as control systems, valves, and industrial lighting under one roof.

"This new facility reinforces Emerson’s position as a key player in the industrial sector in the Kingdom and contributes to Saudi Arabia’s long-term Vision 2030 of strengthening local talent, boosting supply chain localisation and advancing sustainable growth," said Mathias Schinzel, president of Emerson Middle East and Africa.

As part of its net-zero emission goals, the facility incorporates energy-efficient technologies, including rooftop solar power, compressed air optimisation, and lighting system optimisation.

Mishal I. AlZughaibi, SPARK president and CEO, added, “We are proud to collaborate with Emerson to support their new cutting-edge manufacturing hub at SPARK. With the establishment of these facilities, we are closer than ever to achieving our localisation goals. Having Emerson on board strengthens our vision, and we are confident that together, we will continue to advance Saudi Arabia’s industrial journey.”

Emerson has been expanding its presence in Saudi Arabia, having first opened a valves manufacturing facility in Jubail in 2011, followed by additional sites in Dammam and Dhahran Techno Valley.

The new hub at SPARK was officially inaugurated by Emerson’s leadership team, including president and CEO Lal Karsanbhai, alongside key figures from the Ministry of Energy, MISA, SABIC, SWCC, and Ma'aden.

"As part of Emerson's contribution to the 'Made in KSA' initiative, Emerson’s facility will serve domestic and regional markets with advanced technologies designed to meet the evolving needs of various industries, further solidifying Saudi Arabia's position as a leader in localised manufacturing and innovation," said Hussein Zein, vice-president of Emerson in Saudi Arabia and Bahrain.

The facility aims to reduce reliance on imported goods and strengthen local supply chains, aligning with Saudi Vision 2030’s goals of building self-sufficient industries to support the country’s economic growth.

The MoU signing ceremony. (Image source: Tabadul)

Logistics

Tabadul and Energy City Logistics partner to enhance logistics and trade efficiency

Saudi Electronic Info Exchange Company (Tabadul), a leading provider of digital business exchange solutions, has signed an MoU with Energy City Logistics Company, a subsidiary of King Salman Energy Park, specialising in logistics, ports, and customs zones operations.

The agreement, signed at the Saudi Maritime and Logistics Congress in Dammam, aims to strengthen collaboration in logistics and supply chain sectors.

Hisham Alnasser, CEO of Tabadul, and Dave Lee, CEO of Energy City Logistics Services Company, formalised the partnership, which seeks to enhance cooperation, exchange knowledge, and adopt best global practices. 

Alnasser highlighted the significance of the congress, where Tabadul participated as a platinum sponsor. He noted the event’s role as a hub for regional and international dialogue, bringing together leaders in logistics, transport, and trade to discuss future challenges and opportunities. He emphasised the importance of reinforcing partnerships to achieve the goals of Saudi Vision 2030 and strengthen the Kingdom’s global position in the logistics sector.

“We are pleased to sign this MoU with Energy City Logistics Services Company, establishing a strong foundation to enhance our mutual cooperation. This strategic partnership is key to achieving the ambitious goals of both parties, allowing us to leverage our expertise in global trade facilitation by integrating trade systems and enhancing logistics and business services. It represents a key milestone in our efforts to drive digital transformation in the region’s and global trade exchange systems,” Alnasser stated.

Through the agreement, Tabadul will support the development of digital and operational initiatives for Energy City Logistics by collaborating with public and private sectors to build an integrated industrial community. The partnership will also focus on attracting investment, localising resources, and increasing Saudi Arabia’s export volume, all in line with Saudi Vision 2030 objectives.

Tabadul’s mission is to develop secure technological solutions to streamline international trade, enhance transparency, and improve operational efficiency. By offering electronic solutions, Tabadul aims to support the business community and strengthen Saudi Arabia’s role as a model for logistical excellence.

The MoU with Energy City Logistics reflects Tabadul’s commitment to expanding partnerships that facilitate international trade and enhance data connectivity across the logistics sector. The collaboration is expected to improve performance, workflow, and operational efficiency, reinforcing Saudi Arabia’s leadership in the global logistics industry.

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