Green hydrogen is poised to become a cornerstone of the global energy transition, and Saudi Arabia is at the forefront of this movement. Under the visionary leadership of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and Crown Prince Mohammed bin Salman, the Kingdom has launched an ambitious national strategy to dominate the clean hydrogen market by 2030.
Recognized as a transformative energy source, green hydrogen is produced from water using electrolyzers powered by renewable energy. It can fuel cells that generate clean electricity, enabling energy storage and transportation from remote renewable energy hubs to global markets. Moreover, green hydrogen serves as a precursor for synthetic fuels and energy carriers like green ammonia, offering a diverse range of applications.
With its versatility and high energy content, green hydrogen is expected to play a pivotal role in decarbonizing hard-to-abate sectors such as heavy industry and transportation. For Saudi Arabia, this innovative energy source could generate up to $35 billion in revenues by 2050 and create 250,000 jobs, bolstering economic diversification and sustainability.
Green Energy and Hydrogen Production
Saudi Arabia is pursuing a comprehensive plan to develop green hydrogen as a key component of its net-zero carbon emissions goal by 2050. Experts highlight that green hydrogen can power not only transportation but also heating, cooking, and electricity generation, among other uses.
With its abundant natural resources, advanced infrastructure, and strategic location, Saudi Arabia is uniquely positioned to become the world’s largest supplier of hydrogen. By leveraging hydrocarbons and carbon capture technologies, the Kingdom aims to diversify its exports and reduce reliance on crude oil in an era of increasing carbon constraints.
Saudi Arabia’s clean hydrogen production targets include 2.9 million tons annually by 2030, rising to 4 million tons annually by 2035.
NEOM: A Landmark in Green Hydrogen Production
The NEOM project represents a cornerstone of Saudi Arabia’s hydrogen ambitions. This groundbreaking initiative will produce 650 tons of green hydrogen daily, starting in 2025. It highlights the Kingdom’s commitment to diversifying its economy, reducing carbon emissions, and establishing NEOM as a global hub for green energy and technology.
Beyond its environmental impact, the project is set to create significant employment opportunities for Saudi citizens while strengthening the Kingdom’s leadership in green hydrogen production. According to the Ministry of Energy, the NEOM project will reduce carbon dioxide emissions by three million tons annually, aligning with Vision 2030’s sustainability goals.
Leveraging Saudi Arabia’s Natural Advantages
Saudi Arabia’s northwestern shores provide ideal conditions for green hydrogen production, with year-round sunshine and steady winds enabling efficient operation of solar panels and wind turbines. For blue hydrogen, the Kingdom plans to separate methane molecules from natural gas while capturing and storing the resulting carbon emissions.
To enhance production capabilities, the government recently allocated a gas field specifically for blue hydrogen. Additionally, the Kingdom aims to attract over $36 billion in investments by 2030 as part of its national hydrogen strategy, which emphasizes production, exports, domestic utilization, and infrastructure development.
Global Partnerships in Green Hydrogen
Saudi-Korean Cooperation:
In November 2023, the Public Investment Fund (PIF) signed a memorandum of understanding with major South Korean companies, including KEPCO and Samsung C&T. This collaboration focuses on constructing and operating a green hydrogen and ammonia plant in Yanbu, Medina. The facility, spanning nearly 400,000 square meters, is expected to produce 1.2 million tons of green hydrogen and ammonia annually, valued at $6.5 billion. The plant will be operational between 2025 and 2029, with a 20-year lifecycle.
Saudi-Greek Cooperation:
During Crown Prince Mohammed bin Salman’s recent official visit to Greece, the two nations reaffirmed their strategic partnership in hydrogen production. This collaboration encompasses low-carbon and green hydrogen projects and the adoption of circular carbon economy technologies, underscoring Saudi Arabia’s commitment to global sustainability.
Saudi Arabia’s ambitious green hydrogen initiatives reflect its strategic vision to lead the global clean energy sector, drive economic diversification, and achieve sustainability goals. With robust government support, natural advantages, and international partnerships, the Kingdom is set to redefine the future of energy.
