Middle East Positioned for Growth in Green Hydrogen Production
Key Ideas
- The Middle East has significant potential for green hydrogen production due to ample solar and wind energy resources.
- Approximately 9mt/yr of low-carbon and green hydrogen/ammonia projects are in development in the region.
- Most of the region's hydrogen demand is currently met by grey hydrogen for refining and chemical operations.
- Despite holding a small market share currently, the Middle East is poised to expand its presence in the hydrogen industry.
The Middle East region, known for its abundant solar and wind energy resources along with natural gas reserves, is gearing up to enhance its renewable power and green hydrogen production capacity. As per S&P Global, the region has about 9mt/yr of low-carbon and green hydrogen/ammonia projects in the works. While the majority of hydrogen demand in the Middle East is for refining and chemical processes, primarily sourced from grey hydrogen, there is a shift towards cleaner alternatives. Although currently representing only 4% of the active hydrogen project market share, the Middle East has ambitious plans for renewable energy, green and blue hydrogen production, and their derivatives, signaling a positive trajectory in the region's sustainable energy transition and economic growth.
Topics
Middle East
Blue Hydrogen
Renewable Energy
Sustainability
Energy Transition
Ammonia Production
Economic Growth
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