Artist’s impression of Saudi Arabia’s NEOM project
Middle East’s hydrogen ambitions need big investment
The region’s superfluity of renewable energy resources mean it has great potential as a hydrogen developer, but it will come at no small cost
With abundant solar and wind energy potential, the Middle East is keen to develop its renewable energy generation and hydrogen production potential. According to the Gulf Petrochemicals and Chemicals Association (GPCA), the Gulf Cooperation Council’s (GCC’s) hydrogen market could experience a compound annual growth rate of 15% between 2022 and 2050, resulting in potential revenues of $120–200b/yr. However, achieving this will require significant capex in renewable energy capacity, infrastructure, electrolyser development and installation, and hydrogen deployment. Installing the renewable and electrolyser capacities needed would require $16–60b/yr over the next 25 years, with approximately 30
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