Thibaut Burckhart

The Emirate of Ras Al Khaimah (RAK) in the United Arab Emirates (UAE) is well placed to take a leading role in the decarbonisation of the gulf region. The Semail Ophiolite in the southern area of RAK provides the potential for both natural hydrogen exploration and carbon capture via mineralisation projects. What gives RAK a competitive advantage in the eventual commercialisation of these projects is a unique combination of Federal commitment to decarbonisation, Emirate level regulations creating a framework for investment and a proximity to heavy industry and potential consumers with multiple transport and off-take options that will simplify project ramp-up and enhance overall project economics. The RAK Petroleum Authority (RAKPA) will soon be able to administer hydrogen licenses in Ras Al Khaimah alongside traditional oil and gas licenses. RAKPA has been working with several technical and commercial consultancies to enhance our understanding of the natural hydrogen system but also develop a regulatory and commercial framework to give investors’ confidence to invest in projects under a variety of contractor friendly commercial arrangements. In conjunction with hosting COP28 the UAE launched an ambitious plan to decarbonise its industries which includes significant plans for both Green and Blue hydrogen. Whilst facing their own challenges, these technologies are, with federal support, likely to facilitate the initial conversion of key industries like steel and cement to develop a local UAE hydrogen market of around 1.4 MTPA by 2031 and expanding to 15 MTPA by 2050. We believe having RAK natural hydrogen enter an existing hydrogen ecosystem will significantly reduce the time required to get any discovered volumes to market. Ultimate recovery (UR) per well has a major impact on project economics. Encouragingly our models show that even with low UR/well natural hydrogen can compete favourably with green hydrogen in the UAE and with rates equivalent to a “typical shale gas well” we can expect natural hydrogen to displace blue hydrogen and compete with grey hydrogen on a price per kg basis. Distances within the UAE are short compared to many global natural hydrogen projects so lower pipeline capex will enhance project economics. Additionally there may be options for early production of smaller volumes during project ramp up through either blending hydrogen within existing gas pipelines to RAK industrial hubs or utilising the recently completed Emirates rail line that connects major industrial centers in Dubai and Abu Dhabi with the Ophiolite belt in RAK South. With two separate R&D projects underway in RAK South we expect to be de-risking natural hydrogen play types with drilling in late 2024 and 2025.Co-auteur : Andrew Amey, Philip MacLean