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MENA's Underground Hydrogen Storage Race

  • Writer: HX
    HX
  • Mar 20
  • 4 min read


As Middle East and North African (MENA) countries ramp up hydrogen production capacity, a critical infrastructure challenge moves to the forefront: large-scale underground hydrogen storage. The region now accelerates geological assessments and technical feasibility studies to determine which storage options best suit their ambitious hydrogen export plans. Industry experts estimate MENA will require at least 400 TWh of hydrogen storage capacity by 2035 to balance production with export demand – a figure that demands urgent infrastructure planning decisions.


The Storage Imperative: Balancing Intermittent Production


The need for massive hydrogen storage stems directly from the region's renewable energy profile. Solar-powered electrolysis, which dominates MENA's green hydrogen production plans, creates fundamental supply-demand mismatches. "Our production peaks during daylight hours, but export terminals and shipping schedules operate 24/7," explains Dr. Fatima Al-Shehhi, energy systems director at the UAE Hydrogen Initiative. "Without large-scale storage, we would need to size our production capacity for peak demand rather than average demand – increasing capital costs by approximately 40%." This economic reality drives the urgent assessment of underground storage options, with two leading contenders emerging: salt caverns and depleted gas fields.


Salt Caverns: The Premium Storage Option


UAE's Siwell project in the Liwa region represents the MENA's most advanced salt cavern development. Engineering studies confirm the formation can support six caverns, each with 100,000 cubic meters of working volume.


"The Liwa salt structures provide ideal geology for hydrogen containment," notes Mohammed Al-Mazrouei, project director at ADNOC Gas. "Our assessment confirms the caverns can withstand multiple cycling without integrity issues."


Salt caverns offer additional advantages through their operational flexibility. Testing at Siwell demonstrates potential withdrawal rates exceeding 30 GWh daily – crucial for responding to export market fluctuations.


These performance characteristics position salt caverns as the premium storage option, but limited geological availability restricts their potential across the broader region.


The Geological Limitation


Despite their technical advantages, salt formations exist in only specific MENA locations. Saudi Arabia, UAE, and parts of Egypt possess suitable salt structures, while North African countries largely lack appropriate formations.


"We've identified viable salt structures covering approximately 18% of our territory," explains Ahmed Al-Otaibi, geological survey director at Saudi Aramco. "This limits deployment primarily to our eastern region, creating logistical challenges for western production zones."


This geological constraint forces many MENA countries to pursue alternative options, with depleted gas fields emerging as the primary alternative.


Depleted Gas Fields: Scale Advantage with Technical Challenges


Depleted hydrocarbon reservoirs offer unmatched storage capacity. Algeria's In Salah field alone could theoretically store over 85 TWh of hydrogen – equivalent to nearly three months of the country's projected 2035 production.


"Our existing gas fields provide immediate storage potential without requiring new geological surveys or extensive site preparation," notes Karim Benali, infrastructure director at Sonatrach. "We already understand these formations in detail after decades of production."


This familiarity accelerates development timelines. Algeria has already launched the first phase of its Hassi R'Mel hydrogen storage pilot, injecting hydrogen-natural gas blends into a depleted reservoir section to assess containment characteristics.


The Hydrogen Loss Challenge


However, significant technical challenges complicate depleted field conversions. Early testing reveals hydrogen losses ranging from 8-14% during initial injection phases as the smaller hydrogen molecules interact with residual hydrocarbons and formation materials.


"Hydrogen behaves fundamentally differently than methane in these formations," explains Dr. Nadia Bouaziz, reservoir engineer at Morocco's Hydrogen Research Institute. "We observe higher diffusion rates, potential microbial consumption, and chemical reactions with certain minerals. These mechanisms can trap or transform hydrogen molecules."


These issues don't necessarily disqualify depleted reservoirs but require specialized mitigation strategies. Egypt's Western Desert Gas Company developed a reservoir conditioning approach that reduces hydrogen losses to approximately 3% by pre-treating formations with specific chemical inhibitors.


Hybrid Systems Emerge as Optimal Solution

The most promising development combines both storage types into integrated systems. Saudi Arabia's Hydrogen Valley project exemplifies this approach, pairing salt cavern "operational storage" with depleted field "strategic reserves."


"We use salt caverns for rapid cycling – daily and weekly balancing between production and export terminals," explains Khalid Al-Falih, project director at Saudi Hydrogen Company. "The depleted fields provide seasonal storage and strategic reserves, with slower cycling but vastly larger capacity."


This hybrid approach matches each storage type to its optimal function, creating a more resilient overall system.


The Economic Equation


The cost differential between options remains significant. Across MENA projects, salt cavern development averages $280-350 million per cavern, while depleted field conversions range from $180-240 million for comparable working capacity.


However, when factoring hydrogen losses and operational considerations, the lifetime economic comparison narrows considerably. Analysis by the MENA Hydrogen Storage Initiative indicates only an 8-12% lifetime cost advantage for depleted fields when accounting for all operational factors.


Regional Competition Accelerates Development


Countries across the region now race to demonstrate storage capabilities, recognizing this infrastructure represents a potential competitive advantage in hydrogen export markets.


"Storage capacity will determine which countries can offer reliable, continuous supply to premium markets," notes Ibrahim Al-Hassan, energy policy researcher at Qatar University. "Those without adequate storage will be limited to opportunistic spot market sales."


This strategic reality drives accelerated investment despite technical uncertainties. Combined storage projects worth over $15 billion are now in planning or development stages across the region.


As the underground storage race intensifies, MENA countries with diverse geological options maintain significant advantages. The ability to develop complementary storage systems – rather than relying on a single storage type – may ultimately determine which nations emerge as dominant hydrogen exporters in the coming decades.


 
 
 

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