Kingdom aiming to be responsible for 15 percent of world’s blue hydrogen production

JEDDAH: Saudi Arabia is positioning itself as a leader in the hydrogen economy, with significant investments in both green and blue versions of the fuel with the aim to generate half of the Kingdom’s electricity from renewable sources by 2030.

With its commitment to achieving net-zero emissions by 2060, strategic partnerships, and projects like NEOM’s hydrogen initiative, Saudi Arabia is paving the way for a sustainable, hydrogen-powered future.

Saudi energy giants, including Aramco and ACWA Power, are leading major projects in this area aligned with the country’s sustainability goals.

ACWA Power’s Sudair solar plant, with a 1,500 megawatt capacity, will offset 2.9 million tonnes of carbon emissions annually. Aramco is also involved in $30 billion renewable energy projects with the Public Investment Fund and other partners.

Yaseen Ghulam, associate professor of economics and director of research at the Riyadh-based Al-Yamamah University, told Arab News that Saudi Arabia plans to invest up to $10 billion in green hydrogen manufacturing firms, aiming to be responsible for 15 percent of the world’s blue hydrogen production. “Aramco aims to generate 11 million tonnes of blue ammonia annually by 2030. In a well-established plan, Saudi Arabia is aggressively investigating the application of hydrogen in many fields. More specifically, the country is also exploring hydrogen applications in industrial, power generation, and transportation, and car fuel for fuel cell-powered vehicles,” Ghulam said.

He added that the country’s Vision 2030, smart trade relationships with Europe and Asia, technological advancements, and government support are driving these plans and progress in the hydrogen energy sector.

The expert noted that integrating hydrogen into Saudi Arabia’s blue economy is a key strategy for sustainable growth, with green hydrogen set to transform industries like transportation, steel production, and heavy-duty vehicles.

“The global green hydrogen market is expected to see annual growth of more than 40 percent by 2030, reaching $72 billion. By 2050, the demand for green hydrogen could replace 37 percent of the world’s oil production. Saudi Arabia, with its focus on the blue economy since the start of Vision 2030, is making efforts to transition to this next stage by producing and using green hydrogen,” he said.

The academic emphasized that Saudi Arabia’s natural environment — specifically its sunny, windy desert landscapes — creates favorable conditions for green hydrogen production. Youssef Saidi, a research fellow at the Economic Research Forum and a member of the Saudi Economic Association, agreed with Ghulam, adding that the abundant renewable energy resources, including solar, wind, and geothermal, make the Kingdom an ideal location for green hydrogen production. 

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