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The Middle East is one of the better-positioned regions to take advantage of the winning combination of rising demand, innovation, and pre-existing conditions suitable for the hydrogen economy. The region enjoys optimal conditions for producing and exporting green hydrogen.

Saudi Arabia has been able to drive down the costs of green hydrogen production to make it more attractive. While the costs of producing hydrogen range between $2 and $7 per kg globally, Saudi Arabia routinely sticks to the lowest part of this range to create green hydrogen – a feat not easily matched elsewhere for comparable costs.

The country aims to continue pursuing leadership in producing and exporting clean hydrogen, said energy minister Prince Abdulaziz Bin Salman at a Green and Low-Carbon Hydrogen meeting held in India. 

In March this year, the kingdom, which also aims to generate 50% of its energy from green sources by 2030, agreed to fund the world’s largest green hydrogen production facility, totaling an investment of $8.5 billion. The NEOM Green Hydrogen Project, a joint venture between ACWA Power, Air Products, and NEOM Company, is expected to start producing green hydrogen from 100% renewable energy sources in 2026, with the production of up to 1.2 million tonnes of green ammonia annually—which is equivalent to 600 tonnes of green hydrogen per day. 

Several private companies are looking for a piece of the action. For example, Siemens has identified 46 viable green hydrogen projects in the region with a combined value of $92 billion.