Export Edge: Gulf Producers Link Hydrogen to Carbon Strategy

Producers link carbon capture to hydrogen plans as global buyers weigh emissions in future fuel deals

17 Oct 2025

The Middle East’s energy producers are tying their hydrogen export plans to large-scale carbon capture projects, seeking to preserve the competitiveness of gas-based fuels as global buyers place greater weight on emissions performance.

Across the Gulf, companies are advancing strategies that pair hydrogen production from natural gas with carbon capture, utilisation and storage (CCUS). The aim is to reduce associated emissions and position future exports to Europe and Asia in markets where carbon intensity is becoming a key factor in procurement decisions.

Importers are increasingly considering lifecycle emissions in long-term supply contracts, even as formal standards and certification systems remain under development. Hydrogen derived from natural gas can be produced at relatively low cost, but its appeal depends on limiting the carbon dioxide released during production. Carbon capture is being presented as a bridge that allows producers to continue using existing hydrocarbon resources while aligning with anticipated climate requirements.

Saudi Aramco has outlined plans to link hydrogen output to carbon capture hubs near major industrial centres. The projects are designed to capture emissions at scale and store them underground. The company has framed carbon capture as an integral part of its hydrogen strategy, rather than a standalone compliance measure, arguing that long-term demand will depend on demonstrable emissions management.

Abu Dhabi National Oil Company is pursuing a similar approach. It is integrating carbon capture into planned hydrogen and ammonia developments aimed at export markets. The strategy reflects a broader regional view that emissions management is becoming part of export readiness, not simply a response to regulation.

Industry analysts say buyers are seeking greater transparency on emissions across the value chain, even if comprehensive verification standards are not yet mandatory. This scrutiny is shaping investment decisions, including in storage infrastructure. Technology providers such as SLB are expanding their focus from capture systems to long-term storage solutions, as customers and investors examine the durability and safety of underground storage.

Carbon capture projects remain capital intensive, and their commercial case depends on how quickly low-carbon fuel frameworks mature. Some critics argue that reliance on captured-carbon hydrogen could delay investment in renewable alternatives.

Even so, regional momentum is building. By combining hydrogen production with carbon storage, Gulf producers are seeking to safeguard export revenues and secure a role in an energy system that is expected to place tighter limits on emissions.