June 2025 – Global Energy Desk
Saudi Arabia, long known for its oil dominance, is now rapidly transforming into a global leader in green hydrogen production as part of its Vision 2030 strategy. With rising global demand for clean energy and mounting pressure to reduce carbon emissions, the Kingdom is leveraging its vast renewable resources to become a key exporter of zero-carbon fuels.
Massive Investments in NEOM’s Green Hydrogen Hub
At the heart of this transformation is NEOM’s Green Hydrogen Project, led by Air Products, ACWA Power, and NEOM Company. This $8.4 billion mega-project is designed to produce up to 650 tons of green hydrogen per day by 2026—making it the world’s largest green hydrogen facility under construction.
Key highlights:
- Powered entirely by solar and wind farms integrated into the NEOM region
- Hydrogen will be converted to ammonia for easier export
- Expected to displace over 3 million tons of CO₂ emissions annually
- Primary export destinations include Europe, Japan, and South Korea
National Hydrogen Strategy and Global Partnerships
Saudi Arabia has also unveiled its National Hydrogen Strategy aiming to produce 4 million tons of hydrogen per year by 2030, with at least half of that from green sources. Key actions include:
- Establishing hydrogen R&D centers in collaboration with Aramco, KAUST, and SABIC
- Forming partnerships with Germany, China, and the Netherlands for export and infrastructure
- Offering incentives to attract international investors to hydrogen and ammonia projects
Transitioning Beyond Oil
While Saudi Arabia continues to maintain its position as a leading oil producer, officials emphasize that hydrogen will be a pillar of the post-oil economy. In a recent statement, Energy Minister Prince Abdulaziz bin Salman remarked:
“Hydrogen is no longer just a concept. It is a global commodity in the making—and we intend to lead.”
Impact on Global Energy Markets
- The Kingdom’s move could reshape global energy geopolitics, reducing reliance on fossil fuels and diversifying energy exporters
- It positions Saudi Arabia as a future green fuel supplier to carbon-neutral economies
- Analysts view these projects as crucial for the Middle East’s clean energy leadership
