Saudi Arabia on Track to Lead Global Hydrogen Market with $10 Billion Investment Push

JEDDAH, 03 May 2025 — Saudi Arabia is positioning itself as a global leader in the hydrogen economy, with major investments across both green and blue hydrogen. Backed by a national strategy to generate 50% of electricity from renewables by 2030 and achieve net-zero emissions by 2060, the Kingdom is scaling up efforts to capture a significant share of the global clean energy market.

Saudi energy giants such as Aramco and ACWA Power are leading the charge. ACWA Power’s 1,500-megawatt Sudair solar plant is expected to offset 2.9 million tonnes of carbon emissions annually, while Aramco is involved in $30 billion worth of renewable energy projects, including plans to produce 11 million tonnes of blue ammonia per year by 2030.

According to reports, Saudi Arabia plans to invest up to $10 billion in green hydrogen manufacturing and aims to be responsible for 15% of global blue hydrogen production. The country is actively exploring hydrogen applications in sectors such as industrial manufacturing, power generation, and transportation, including fuel cell-powered vehicles.

The hydrogen push is tightly aligned with Vision 2030, which prioritizes sustainability, economic diversification, and global trade partnerships. Industry experts highlight the Kingdom’s abundant solar and wind resources, which make it ideally suited for green hydrogen production.

The NEOM Green Hydrogen Project, a collaboration between NEOM, ACWA Power, and Air Products, is a centerpiece of this strategy. The $500 billion facility, powered entirely by renewables, is set to produce 650 tonnes of green hydrogen daily by 2026. Other projects include the King Salman Energy Park, Hydrogen City, and the Blue Ammonia Supply Chain initiative, all intended to build a robust hydrogen ecosystem.

Experts estimate that the global green hydrogen market will grow over 40% annually, reaching $72 billion by 2030. By 2050, green hydrogen could replace 37% of the world’s oil consumption. Saudi Arabia plans to produce 1.2 million tonnes of green hydrogen by 2030 and is strategically located to export to key markets such as Europe, Japan, South Korea, and Singapore.

Production costs also offer the Kingdom a competitive edge. With green hydrogen expected to cost around $2.16 per kilogram, and blue hydrogen potentially as low as $1.13, Saudi Arabia is among the world’s most cost-efficient producers. Financing costs in the Kingdom are estimated to be at least 200 basis points lower than in markets like Germany.

International collaboration is another driving force. Saudi Arabia has joined global platforms such as the International Partnership for Hydrogen and Fuel Cells in the Economy and established joint ventures with companies including SABIC, ExxonMobil, Air Liquide, and Tasnee. These partnerships are vital in scaling up technology, infrastructure, and market access.

Experts say the clean hydrogen market could reach $640 billion by 2030, up from $160 billion in 2022, with as much as 10% of global energy supplied by hydrogen by 2050. With strong backing, abundant resources, and a clear strategy, Saudi Arabia is steadily positioning itself at the forefront of the global hydrogen transition.