Saudi Arabia is rapidly emerging as a global hydrogen powerhouse, investing heavily in both green and blue hydrogen as part of its strategy to generate 50% of its electricity from renewable sources by 2030 and achieve net-zero emissions by 2060.
Energy giants Aramco and ACWA Power are leading major initiatives aligned with Vision 2030. ACWA’s Sudair solar plant will deliver 1,500 megawatts of clean energy and offset 2.9 million tonnes of carbon emissions annually. Aramco company, meanwhile, is participating in $30 billion worth of renewable projects through its partnership with the Public Investment Fund.
At the center of this transition is NEOM Green Hydrogen Co., a $500 billion joint venture with ACWA Power and Air Products. It is set to produce 650 tonnes of green hydrogen per day by 2026. According to the International Energy Agency, it is the world’s largest hydrogen project to reach a final investment decision, with 2.2 gigawatts of electrolyzer capacity.
Saudi Arabia plans to supply 15% of global blue hydrogen production and reach 1.2 million tonnes of green hydrogen output by 2030. “The Kingdom’s location and infrastructure give it a clear advantage in exporting hydrogen to Europe and Asia,” said Yaseen Ghulam, economics professor at Al-Yamamah University.
Hydrogen is also a key enabler for Saudi Arabia’s industrial transformation. It can fuel transport and heavy industry, support ammonia manufacturing, and help stabilize the national grid. Ghulam noted that production costs are as low as $2.16 per kilogram for green hydrogen, potentially dropping to $1.13 for blue hydrogen if natural gas prices remain favorable.
Saudi Arabia is strengthening its hydrogen capabilities through international collaborations and corporate partnerships. These include government-level agreements with countries like Germany, as well as deals with energy majors such as ExxonMobil, Air Liquide, and SABIC. Youssef Saidi, a research fellow at the Economic Research Forum, highlighted that abundant solar, wind, and geothermal resources make the Kingdom well-positioned for long-term clean energy leadership.
With the global hydrogen market projected to reach $640 billion by 2030, Saudi Arabia is not just part of the transition, it is helping define it.
