Qatar and the Mena region are both experiencing significant growth opportunities in the cleantech industry, driven by favourable government policies, successful sustainability initiatives and national strategies, and abundant natural resources such as solar energy.
Qatar, in particular, has a dynamic and integrated cleantech value chain, which presents a plethora of investment opportunities, IPA Qatar stated in a sectoral study.
Just recently, Qatar’s delegation at Hannover Messe 2023, the world's leading trade fair for industry, highlighted the country’s potential as an emerging leader in the cleantech industry, driven by a dynamic, integrated value chain encompassing tech development, manufacturing, distribution and project development, and services.
Notably, IPA Qatar has partnered with global energy leaders such as Iberdrola Group to explore and implement clean energy projects in Qatar. The IPA Qatar-Iberdrola partnership entails the establishment of a world-leading centre to advance digital utility in Qatar. It also supports the expansion of the Spanish group’s research, development, and innovation (RDI) activities through the Doha-based Iberdrola Innovation Middle East. This hub tackles technology challenges related to innovation and digitalisation of the electrical grid by developing solutions in smart grids, renewable energy integration, and energy efficiency.
With its abundant solar energy resources, Qatar is well positioned to take advantage of hydrogen production, which is essential to decarbonising hard-to-abate sectors. Moreover, Qatar's low-cost electricity, rich natural gas resources, and the establishment of a well-connected and efficient electricity grid set a solid foundation for hydrogen production.
The country’s integrated energy company, QatarEnergy, announced the construction of the world's largest blue ammonia plant, expected to come online by 2026 and produce 1.2mn tonnes per year. The $1bn project also supports Qatar’s goal to develop its carbon capture and storage facilities to sequester up to 11mn tonnes of CO2 per year by 2035.
Qatar strives to reduce greenhouse gas emissions, conserve land and promote biodiversity to improve indoor air quality based on WHO guidelines. These efforts are reflected in the construction of Lusail City, the country's flagship sustainable city, and the development of a renewable energy-powered metro rail transportation network.
Newly emerging hydrogen and renewable energy sources in the Mena region, along with international partnerships, are fuelling growth potential in the cleantech industry. Qatar’s actions to combat climate change and promote clean technology extend beyond national and regional boundaries.
A few years ago, QatarEnergy and Royal Dutch Shell agreed to jointly invest in blue and green hydrogen projects in the UK. Likewise, QatarEnergy’s agreement with South Korea’s Hydrogen Convergence Alliance (H2Korea) supports multilateral efforts to accelerate cooperation for hydrogen-related technologies worldwide.
Qatar’s commitment to sustainability, coupled with its willingness to collaborate and invest in innovative technologies, demonstrates its dedication to building a greener and more sustainable future.
The study stated that renewable energy in the Mena region is expected to increase at a compound annual growth rate of 8% from 2010-2035. The region receives between 22% and 26% of all solar energy striking the earth, which enhances the potential for a vibrant renewable energy sector, it also stated.
It also stated that solar installed capacity in Mena is expected to increase by almost 40GW by 2025 and that the GCC aims to reduce oil consumption by 23% by 2030, creating over 220,000 jobs in the renewable energy sector.