Saudi Arabia is positioning itself to become a global leader in both producing and using hydrogen as a clean energy source. By 2026, the Kingdom plans to finish building the world’s largest green hydrogen plant in the NEOM region. This move underscores Saudi Arabia’s commitment to renewable energy and sustainability.
KAPSARC’s exploration of Saudi Arabia’s clean hydrogen sector
A recent book by the King Abdullah Petroleum Studies and Research Center (KAPSARC), titled “The Clean Hydrogen Economy and Saudi Arabia,” highlighted the country’s achievement of the lowest cost of electricity production from renewable sources. The book aimed to explore the challenges facing Saudi Arabia in the clean hydrogen sector and discuss global efforts and solutions to address technological gaps.
NEOM green hydrogen project
The NEOM Green Hydrogen Company has made significant progress in constructing the world’s largest green hydrogen production facility in the NEOM region’s industrial city of “Oxagon.” With an investment of $8.4 billion, this plant is set to provide clean energy on a large scale globally, marking a major milestone in sustainable energy production. The book also mentioned that producing green hydrogen in NEOM is expected to cost less than two dollars per kilogram, one of the lowest rates worldwide.
Read more: NEOM’s Gidori: Uniting golf, luxury, and natural beauty
Declining costs of green hydrogen
As electricity and green technology costs drop, the cost of making green hydrogen is also expected to decrease, according to the book. Additionally, Saudi Arabia not only has cheap fossil fuels but also abundant sustainable energy sources, securing its position in future energy markets.
Saudi Arabia’s renewable energy advantage
Moreover, Saudi Arabia has one of the world’s most abundant renewable energy sources, which will help cut carbon removal costs across the country. NEOM can supply renewable energy for making low-carbon chemicals, steel, aluminum, fertilizers, and mining. Hydrogen can also be used to stabilize the electricity system, store energy, and fuel land and maritime transport, as per the book.
For more news on sustainability, click here.
