1.2 Million Tonnes of Green Hydrogen: Saudi Arabia’s Export Ambition
Saudi Arabia is accelerating its clean energy transition with a bold target: exporting 1.2 million tonnes of green hydrogen annually by 2030. This figure anchors the Kingdom’s long-term strategy to become the world’s largest supplier of green hydrogen, leveraging its vast renewable resources and strategic trade positioning. The initiative is part of Vision 2030’s broader goal to generate 50% of domestic electricity from renewables and achieve net-zero emissions by 2060.
The Kingdom’s natural advantages—sun-rich deserts, wind corridors, and low financing costs—make it one of the most competitive producers globally, with green hydrogen costs estimated between $1–$2 per kilogram. This positions Saudi Arabia as a key player in the $700 billion hydrogen economy projected by 2050.
Stargate Hydrogen KSA: Deep-Tech Localization and IP Generation
In a recent development, European innovator Stargate Hydrogen signed a Memorandum of Understanding with Saudi Arabia’s Research, Development, and Innovation Authority (RDI). The agreement–signed in September–includes the launch of Stargate Hydrogen KSA, a Riyadh-based regional HQ focused on localizing electrolyser technologies and generating intellectual property in collaboration with institutions like KAUST.
The partnership will also build domestic manufacturing capacity and foster talent development through joint workshops and stakeholder engagement. Facilitated by Apex Ventures under RDI’s Global Startups Attraction Program, this move strengthens Saudi Arabia’s innovation ecosystem and supports its hydrogen export infrastructure.
Infrastructure Backbone: NEOM and Sudair Projects
Saudi Arabia’s hydrogen ambitions are backed by large-scale infrastructure. The NEOM Green Hydrogen Co., a $500 billion joint venture, is set to produce 650 tonnes of green hydrogen daily by 2026, powered by 2.2 GW of electrolyzer capacity. Meanwhile, ACWA Power’s Sudair solar plant contributes 1,500 MW of clean energy and offsets 2.9 million tonnes of carbon emissions annually.
These projects form the backbone of the Kingdom’s hydrogen production pipeline, enabling scalable exports and supporting domestic decarbonization.
Saudi-German Deal: 200,000 Tonnes of Green Hydrogen Annually
Complementing its global strategy, in early 2025, Saudi Arabia signed an agreement with Germany to export 200,000 tonnes of green hydrogen annually by 2030. The deal, inked between ACWA Power and Germany’s SEFE Energy Company, establishes a hydrogen bridge between the two nations and reinforces Saudi Arabia’s role in Europe’s energy transition.
This partnership follows Germany’s broader efforts to diversify energy imports post-Russia-Ukraine conflict, with similar hydrogen agreements signed with Brazil and Norway. The Saudi-German deal showcases the Kingdom’s ability to deliver large-scale, cost-effective hydrogen to international markets.
Market Outlook: $640B by 2030, $700B by 2050
The global hydrogen market is expected to reach $640 billion by 2030, growing to $700 billion by 2050. Saudi Arabia’s export strategy aligns with this trajectory, aiming to supply 10% of the world’s hydrogen energy by mid-century. With existing oil infrastructure, favorable financing conditions, and strategic trade routes to Europe and Asia, the Kingdom is well-positioned to lead the next chapter of global energy.
Also Read: The Race to Achieve Sun Power: Emerging Trends in the GCC Solar Energy Landscape
