Saudi Arabia, Egypt Lead Way in Hydrogen Export Projects


Egypt, partnering with Saudi Arabia, is developing a significant project in the hydrogen industry. The green ammonia facility in Sokhna, 120km east of Cairo, will produce 500,000 tons of green ammonia from 100,000 tons of green hydrogen annually, using renewable energy sources.

This facility is part of Alfanar’s mission to pioneer the energy transition industry and aligns with the Middle East Green Initiative launched by Saudi Crown Prince Mohammed Bin Salman​​.

Saudi Arabia’s Ambitious

Saudi Arabia has set a goal to become the world’s largest exporter of hydrogen by 2030​​. The NEOM Green Hydrogen Project, announced earlier this year, epitomizes this ambition.

This project, a joint venture between NEOM, Air Products, and ACWA Power, will become the world’s largest utility-scale, commercially-based hydrogen facility powered entirely by renewable energy when commissioned in 2026.

 Global Energy Source

Hydrogen is rapidly emerging as a crucial component of the global energy market. According to the World Bank, the hydrogen market, valued at $130 billion last year, is projected to grow by 9.2% annually through 2030​​. This growth is driven by the increasing demand for sustainable and low-carbon energy sources.

OAPEC’s Analysis

OAPEC notes many announced hydrogen export projects are still in early stages. As of September 2023, around 47 projects in Arab countries focus on hydrogen production, export, and applications. Ammonia projects are especially notable.

Challenges, Recommendations

The high cost of hydrogen transportation is a significant challenge. OAPEC’s study suggests revisiting and leveraging existing oil and gas pipelines to reduce costs.

These developments, supported by international collaboration and technological innovation, are essential for a greener energy future.

Related Topics :

Green hydrogen production in the Kingdom: Ambitious plans to lead the sector

Saudi’s Al-Fanar is implementing a hydrogen production project in Egypt

Saudi Arabia returns to space in collaboration with NASA: US Embassy

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