Saudis Pursue Hydrogen, Aiming for Energy Superpower Status - Forbes (rephrased)
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In a bold move towards a cleaner energy future, Saudi Arabia is positioning itself as a major player in the hydrogen economy. With its abundant renewable energy sources, significant financial resources, and deep expertise in the petrochemical sector, the kingdom is poised to become a large-scale producer of clean hydrogen.
Two flagship initiatives, the NEOM Green Hydrogen Project and the Yanbu Green Hydrogen Hub, are at the forefront of this ambitious plan. The NEOM project, nearing 80% completion as of early 2025, integrates 4 GW of renewable energy from solar and wind, coupled with hydrogen electrolysis technology. It aims to produce 600 tonnes of green hydrogen daily, converted into up to 1.2 million tonnes of green ammonia annually by 2027. This project, expected to abate 5 million tonnes of CO₂ emissions per year, will be the world’s largest green hydrogen-based ammonia production facility and a benchmark in energy automation and carbon reduction.
The Yanbu Green Hydrogen Hub, announced as a second major green hydrogen facility, plans to generate 400,000 tons of green hydrogen annually using 4 GW of electrolysis capacity, converting it to green ammonia for export. This project reflects Saudi Arabia’s ambitions to scale up clean hydrogen production significantly, leveraging partnerships with international companies such as ACWA Power and Germany’s EnBW.
These mega-projects are part of Saudi Arabia’s national strategy, Vision 2030, which aims to generate 50% of its electricity from renewables by 2030. Clean hydrogen (both green and blue) is a core pillar of this strategy, with the kingdom targeting producing 4 million tonnes of clean hydrogen annually by 2030, accompanied by carbon capture efforts absorbing over 27 million tonnes of CO₂e. Large-scale investments in renewable projects (totaling over 15 GW from solar and wind) support hydrogen electrolysis and ammonia synthesis infrastructure, enabling both domestic use and competitive global exports.
The NEOM project incorporates advanced energy management systems using artificial intelligence and machine learning for real-time optimization of renewable generation, electrolysis, and storage. This digital and industrial innovation fosters technology transfer in electrolyzer design, turbine manufacturing, and energy automation. The projects also create jobs (up to 10,000 direct and indirect) and build a specialized supply chain and workforce aligned with a hydrogen-based economy.
Saudi Arabia aims to supply the growing $700 billion hydrogen market by 2050 through low-cost, large-scale production methods enabled by abundant solar and wind resources, strategic global partnerships, and infrastructure supporting green ammonia exports as an energy carrier for carbon-intensive industries worldwide.
However, Saudi Arabia could face economic disadvantages if it fails to prepare for a future with reduced oil dependency. Seonghoon Woo, the chief executive and co-founder of Amogy, a company producing a carbon-free ammonia cracking technology, emphasizes the importance of diversification. With its ambitious plans for clean hydrogen production, Saudi Arabia is clearly eyeing a new energy superpower status.
[1] NEOM Green Hydrogen Project: https://www.neom.com/en-us/news/press-releases/neom-announces-partnership-with-acwa-power-to-develop-one-of-the-worlds-largest-green-hydrogen-production-facilities
[2] Yanbu Green Hydrogen Hub: https://www.reuters.com/business/energy/saudi-arabia-germany-to-invest-2-billion-green-hydrogen-project-2021-07-13/
[3] NEOM Project Details: https://www.neom.com/en-us/projects/energy-and-water/green-hydrogen
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