WFES: MIDDLE EAST PRIMED TO LEAD H2 REVOLUTION

The global energy transition is not just about producing clean energy on site – it’s a matter of storing, transporting and delivering energy worldwide. With abundant renewables, geographical convenience and vast ongoing investments in logistical infrastructure, the Middle East is primed to lead the global green hydrogen market, according to the World Future Energy Summit. Not only does it possess the potential for scalable green hydrogen production, but also its worldwide exportation to satisfy burgeoning global demand. While the costs of producing hydrogen range between $2 and $7 per kg globally, Saudi Arabia manages to routinely stick to the lowest part of this range. This goes for the creation of green hydrogen – a feat not easily matched elsewhere for comparable costs. The King Abdullah Petroleum Studies and Research Center (KAPSARC) predicted this month that in the long term, rates of $1 per kg should be reliably attainable in Saudi Arabia, making them easily the cheapest in the world.

Back in March, WFES reported on the start of construction work at the NEOM $5bn green hydrogen project. With production slated to start in 2026, its initial daily capacity of 650 tonnes of carbon-free hydrogen should reinforce the seriousness of Saudi Arabia’s ambitions to lead the way in an already enthusiastic ME green hydrogen market.

While Saudi Arabia may be able to produce the cheapest green

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hydrogen, there are plenty of other contenders nearby in the form of other Middle Eastern nations with similar advantages and backed by an equally strong political will to harness their newest source of competitive advantage to the fullest.

Reports vary to the exact size of the current investments and the number of planned projects occurring in the Middle East, but they all point towards a significant ramping up of ambitions and financial backing. In August, Siemens identified 46 viable green hydrogen projects in the MEA region, accounting for a combined worth of $92 billion. Last year, MEED calculated that the roughly 50+ projects in the region added up to over $150 billion in investments.

The MEED report went on to state that while Saudi Arabia and the UAE had projects worth $10.5 billion and $10.28 billion respectively, Egypt has staked more than six times either of these efforts, currently investing $63.8 billion. Oman is not far behind with projects worth $48.9 billion.

Clearly Egypt, with its excellent access to wind and solar, and an ongoing multi-billion-dollar port upgrade plan, is determined to be a key player in both the regional competition to secure green hydrogen supplier status and the development of the wider global market. With other regional nations following suit, the race is on to discover who stands to gain prominence in the green hydrogen market’s next phase of development.

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