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As the Gulf positions itself at the forefront of the global clean-energy transition, green hydrogen and sustainable aviation fuels (e-SAF) are emerging as key pillars of the region’s decarbonisation strategy. With abundant solar resources, supportive regulatory frameworks, and ambitious national climate commitments, the Middle East is rapidly becoming a natural hub for large-scale clean-energy projects.
In this interview, Switzerland-based Smartenergy’s chairman Horst H Mahmoudi discusses the economics of green hydrogen and e-fuels, the partnerships needed to build robust supply chains, and the company’s expansion plans to drive sustainable solutions for aviation, data centres, and industrial operations across the Gulf and beyond.
Smart Energy, which was founded in 2011, focuses on investments in renewable energy and related ventures. The company identifies, develops and delivers green energy assets, and supports the ongoing transition of industry towards green energy, focused on the deployment of solar, wind, green hydrogen and Power-to-Liquid projects
What is driving the Gulf’s rise as a global hub for green hydrogen and e-fuels?
The Gulf offers a unique combination of ideal environmental and economic conditions. The region benefits from some of the world’s highest solar irradiation levels, enabling exceptionally low levelised cost of energy (LCOE).
This is paired with clear national commitments to accelerate decarbonisation and establish large-scale clean-energy industries, positioning the region as a natural hub for green hydrogen and e-fuel development.
How can climate pledges quickly turn into scalable, bankable clean-energy projects?
Unlocking scale requires coordinated commitments from both the public and private sectors. This includes enabling investment frameworks, streamlined regulation, and policies that facilitate project development.
When governments reduce regulatory barriers and support long-term visibility, private capital can deploy more efficiently creating the conditions for climate pledges to translate into commercially viable, rapidly executable clean-energy projects.
What does the real cost trajectory of green hydrogen and e-SAF look like today?
Current production economics remain challenging. Conventional jet fuel costs roughly $1,000 per tonne, compared to approximately $6,000–$7,000 per tonne for e-SAF. These costs are expected to decline as production scales and technology matures.
Regulatory frameworks will also play a decisive role: penalties for failing to meet mandated SAF volumes are already significantly higher than the cost delta between conventional fuel and e-SAF. For example, analysis conducted for a major refueling company showed potential losses of up to $1.6bn if required volumes are not met. This underscores the high financial risk of inaction and the urgency of early adoption.
Which partnerships will be essential to building viable hydrogen and e-fuel supply chains in the region?
Effective supply chains will require integrated collaboration across the aviation, energy, and industrial ecosystems.
Airlines and fuel-supply companies must work alongside investors in renewable energy and infrastructure developers responsible for producing e-SAF and e-crude.
Coordination between the traditional oil and gas sector and the emerging renewable-energy industry will be fundamental to ensuring scalable production, refining, and blending.
What major developments should industry leaders expect from Smartenergy’s expansion in the UAE and region?
Smartenergy is advancing regional decarbonisation efforts through two primary focus areas: sustainable aviation fuels and renewable-energy solutions for data centre operations. The company intends to leverage its European expertise in e-SAF to support the Middle East’s aviation-sector transition.
In parallel, Smartenergy is developing renewable-power strategies tailored to the 24-hour operational demands of data centres.
These solutions combine solar generation, battery storage, and, where necessary, gas peaker systems to ensure continuous, reliable supply. The company aims to scale these capabilities both within the region and as part of a broader global expansion strategy.
