|
Forecast Period
|
2025-2029
|
|
Market Size (2023)
|
USD 791.38 Million
|
|
CAGR (2024-2029)
|
8.21%
|
|
Fastest Growing Segment
|
Power Generation
|
|
Largest Market
|
Saudi Arabia
|
Middle East & Africa Green Hydrogen
Market is expected to reach a significant value of USD 791.38 Million in 2023 and is anticipated to
project robust CAGR growth of 8.21% in the forecast through 2029.
The
Middle East and Africa (MEA) region, known for its vast energy resources, is
now embracing the green hydrogen revolution. Green hydrogen, produced through
the electrolysis of water using renewable energy sources, is heralded as a
clean and sustainable alternative to conventional hydrogen production methods.
As the world pivots towards decarbonization, the MEA region's potential to
become a green hydrogen powerhouse cannot be underestimated. The
MEA region has been a cornerstone of the Middle East & Africa energy
landscape for decades, primarily due to its abundant reserves of oil and
natural gas. However, as Middle East & Africa environmental concerns have
intensified, the need for cleaner and more sustainable energy sources has
become apparent. The historical reliance on fossil fuels has prompted a shift
towards green hydrogen production to align with decarbonization goals.
The
MEA green hydrogen market is gaining traction, with a growing number of key
players contributing to its development. Notable players in the region include
ACWA Power, Air Products and Chemicals, Inc., and ThyssenKrupp Industrial
Solutions AG. These industry leaders are actively shaping the market by
investing in green hydrogen projects and technologies. Green
hydrogen finds applications across various sectors, including transportation,
energy storage, and industrial processes. It serves as a clean fuel for
vehicles, an energy carrier for grid balancing, and a critical raw material for
industries such as petrochemicals and ammonia production. The versatility of
green hydrogen is a key driver of its adoption in the MEA region. The demand for hydrogen continues to increase steadily. Presently, global demand of hydrogen stands at around 90 million metric tons per year, a stark contrast to the 18 million metric tons per year recorded in 1975.
Several
factors drive the demand for green hydrogen in the MEA region. The abundance of
renewable energy resources, such as solar and wind, creates a favorable
environment for green hydrogen production. Moreover, the growing emphasis on
sustainability and environmental commitments by governments and corporations
has accelerated the development of green hydrogen projects. While
the MEA green hydrogen market displays immense potential, it faces specific
challenges. The development of infrastructure for green hydrogen production,
transportation, and storage is a complex and costly endeavor. Additionally,
international cooperation and regulations are required to facilitate the export
and import of green hydrogen. Environmental
sustainability and regulatory compliance are paramount in the green hydrogen
industry. Countries in the MEA region are enacting policies and regulations
that promote renewable energy and green hydrogen production. These measures
align with international efforts to reduce carbon emissions and combat climate
change.
The
MEA green hydrogen market is witnessing several noteworthy trends. Countries in
the region are actively exploring opportunities for green hydrogen export,
establishing themselves as key players in the Middle East & Africa hydrogen
market. Additionally, investments in large-scale green hydrogen production
facilities and research and development activities are on the rise. Saudi
Arabia and the UAE spearhead green hydrogen projects, valued at $10.5 billion
and $10.28 billion, respectively. Meanwhile, Egypt, leveraging abundant wind
and solar resources and a substantial port upgrade initiative, leads with a
significant investment of $63.8 billion. Oman closely follows with projects
totaling $48.9 billion. Egypt's strategic positioning and robust investments
position it as a key contender in both regional competition for green hydrogen
supplier dominance and global market development. As other regional players
join the race, the competition intensifies to determine the key players in the
upcoming phase of green hydrogen market development.
The
future outlook for the Middle East & Africa green hydrogen market is
promising. With abundant renewable energy resources and growing Middle East
& Africa demand for clean hydrogen, the region is well-positioned to become
a major contributor to the green hydrogen landscape. The industry's
adaptability to changing market dynamics, investment in infrastructure, and
alignment with Middle East & Africa sustainability goals will be crucial in
shaping its growth trajectory. The
MEA region is at a pivotal juncture in its energy transition journey, with
green hydrogen poised to play a significant role. As countries in the region
tap into their renewable energy potential and invest in green hydrogen
projects, they are not only addressing environmental concerns but also
positioning themselves as key players in the Middle East & Africa hydrogen
market. The journey towards sustainable energy in the MEA region is driven by
innovation, strategic partnerships, and a shared commitment to a greener
future. Thus, the Middle East & Africa green hydrogen market is set for
substantial growth, driven by abundant renewable energy resources and a Middle
East & Africa shift towards sustainable energy solutions. Green hydrogen is
emerging as a game-changer in the region, offering a cleaner and more
sustainable path to meet the growing energy demands while contributing to Middle
East & Africa efforts in combating climate change.
Key Market Drivers
Abundant Renewable Energy
Resources is Driving the demand for Middle East & Africa Green Hydrogen
Market
The
Middle East and Africa (MEA) region is experiencing a growing demand for green
hydrogen, driven by the abundant renewable energy resources available in this
part of the world. Green hydrogen, produced through the electrolysis of water
using renewable energy sources, is gaining prominence as a clean and
sustainable energy carrier. The MEA region, known for its vast renewable energy
potential, is positioned to play a pivotal role in the global green hydrogen
market.
One
of the primary factors contributing to the rise in demand for green hydrogen in
the MEA region is the abundance of renewable energy resources, particularly
solar and wind energy. The region enjoys an exceptionally high level of solar
irradiation, making it a prime location for photovoltaic (PV) solar panel
installations. Concentrated solar power (CSP) technology is also well-suited to
harness the intense sunlight, and it can be used to generate electricity for
electrolysis, the key process for green hydrogen production. Saudi Arabia
consistently achieves the lowest production costs for hydrogen, ranging from
USD 2 to 1. Saudi
Arabia consistently achieves the lowest production costs for hydrogen, ranging
from USD 2 to USD 7 per kg globally. The King Abdullah Petroleum Studies and
Research Center (KAPSARC) forecasts that in the long term, Saudi Arabia could
reliably achieve rates as low as USD 1 per kg, positioning them as the world's
most cost-effective producer of green hydrogen. USD 7 per kg globally. The King
Abdullah Petroleum Studies and Research Center (KAPSARC) forecasts that in the
long term, Saudi Arabia could reliably achieve rates as low as USD 1 per kg,
positioning them as the world's most cost-effective producer of green hydrogen.
Moreover,
the MEA region experiences consistent and strong wind patterns in many areas,
making it a potential hub for wind energy generation. Wind farms in the region
have the capacity to generate substantial amounts of clean electricity, which
can be used to power the electrolysis process required for green hydrogen
production. These abundant renewable energy resources are a key enabler of
green hydrogen production and have the potential to position the MEA region as
a major global player in the emerging green hydrogen market.
Governments
across the MEA region is recognizing the strategic importance of green hydrogen
and are taking proactive steps to foster its growth. Many countries in the
region have set ambitious renewable energy targets and are investing in
infrastructure and technology to support green hydrogen production. These
initiatives are in line with global efforts to reduce carbon emissions,
mitigate the impact of climate change, and ensure energy security for the
future. As the MEA region aligns with international climate agreements and
sustainability goals, green hydrogen is poised to become a significant
component of its energy landscape. The
industrial sector in the MEA region offers a promising avenue for green
hydrogen adoption. Energy-intensive industries, such as petrochemicals, steel,
and cement production, are central to the region's economy. Historically, these
industries have relied heavily on fossil fuels for energy needs. Green hydrogen
presents an attractive alternative, offering a clean and sustainable source of
energy. By transitioning to green hydrogen, these industries can significantly
reduce their carbon footprint and contribute to a more sustainable and
eco-friendly energy ecosystem.
Furthermore,
the MEA region's potential as a global energy provider is driving the adoption
of green hydrogen. As a region with extensive experience in the energy sector,
it has the opportunity to diversify its energy offerings by exporting green
hydrogen to international markets. This not only contributes to the region's
energy security but also positions it as a key player in the global renewable
energy transition. The MEA region can leverage its expertise in energy
production and distribution to establish itself as a leading green hydrogen
supplier to meet the global demand for clean energy. Research
and development efforts in the MEA region are also contributing to the growth
of the green hydrogen market. Governments and private entities are investing in
cutting-edge technologies and innovation to enhance the efficiency and
cost-effectiveness of green hydrogen production. Research institutions and
universities are actively involved in exploring advanced solutions, such as
improved electrolysis processes, innovative materials, and integrated renewable
energy systems, to accelerate the adoption of green hydrogen.
The MEA region's abundant renewable energy resources, government
commitments to sustainability, the decarbonization of energy-intensive
industries, and its potential as a global green hydrogen supplier are
collectively driving the demand for green hydrogen in the region. The
availability of solar and wind energy resources, combined with the region's
commitment to clean and sustainable energy solutions, positions the MEA as a
crucial player in the global green hydrogen market. As the region harnesses its
renewable energy potential and transitions towards a greener energy landscape,
green hydrogen is expected to play a significant role in achieving a
sustainable and eco-friendly energy future.
Growing Focus on
Sustainability is Expected to Propel the Middle East & Africa Green Hydrogen
Market
The
Middle East and Africa (MEA) are poised to play a pivotal role in the global
transition to a more sustainable and renewable energy future, and the region's
green hydrogen market is set to benefit significantly from this transformation.
Green hydrogen, produced through the electrolysis of water using renewable
energy sources, has emerged as a key solution for reducing carbon emissions and
fostering a sustainable energy ecosystem. The MEA region, known for its
abundant solar and wind resources, is well-positioned to capitalize on the
growing global focus on sustainability and the transition to clean energy.
One
of the primary drivers behind the expected growth of the MEA green hydrogen
market is the region's immense potential for renewable energy generation. The
Middle East, in particular, boasts vast solar and wind resources that can be
harnessed for the production of green hydrogen. Solar energy, in the form of
photovoltaic (PV) panels and concentrated solar power (CSP), is abundant
throughout the region, with the potential to generate significant amounts of
clean electricity for electrolysis. Additionally, the region's strong and
consistent wind patterns make it conducive for wind energy generation, further
contributing to green hydrogen production.
Governments
in the Middle East and Africa have recognized the potential of green hydrogen
and are increasingly committing to sustainable energy initiatives. Many
countries in the region have set ambitious renewable energy targets and are
investing in infrastructure and technology to support green hydrogen
production. These initiatives aim to reduce greenhouse gas emissions, diversify
energy sources, and create economic opportunities in the clean energy sector.
Furthermore, global environmental agreements and commitments, such as the Paris
Agreement and the United Nations Sustainable Development Goals, are pushing MEA
countries to take steps towards sustainability and reduce their carbon
footprints. There
are 46 viable green hydrogen projects in the MEA region, collectively valued at
$92 billion. According to MEED, the total investment for the over 50 projects
in the region amounts to more than $150 billion.
The
industrial sector in the MEA region presents a significant opportunity for
green hydrogen adoption. Industries, such as petrochemicals, steel, and cement,
are energy-intensive and have traditionally relied on fossil fuels for their
energy needs. By transitioning to green hydrogen, these industries can reduce
their carbon emissions and environmental impact while ensuring a stable and
sustainable energy supply. The use of green hydrogen in these sectors can lead
to the decarbonization of industrial processes and contribute to a greener and
more sustainable economy.
Another
driving force behind the MEA green hydrogen market is the region's role in
global energy security. As an essential player in the global energy landscape,
the Middle East has an opportunity to diversify its energy offerings and export
green hydrogen to international markets. Green hydrogen production can
complement traditional hydrocarbon exports, offering a cleaner and more
sustainable energy source to the world. This diversification not only secures
the region's energy future but also positions it as a key player in the global
renewable energy transition.
Investments
in research and development are also expected to drive the growth of the MEA
green hydrogen market. As governments and private entities in the region
allocate resources to advance technology and improve the efficiency of green
hydrogen production, the cost of production is likely to decrease, making green
hydrogen more economically viable. Research institutions and universities in
the MEA region are actively involved in exploring innovative solutions and
technologies for green hydrogen production, driving progress in the field.
In
conclusion, the growing focus on sustainability, the vast potential of
renewable energy resources, government commitments to clean energy, the
decarbonization of industries, and the role in global energy security are
collectively expected to propel the Middle East and Africa green hydrogen
market. As the region harnesses its renewable energy potential and transitions
towards sustainable energy solutions, it is likely to become a significant
contributor to the global green hydrogen landscape. The MEA region has the
opportunity to lead the way in the adoption of green hydrogen and contribute to
a more sustainable and eco-friendly energy future.
Accelerated adoption of
renewable energy is Expected to Propel the Middle East & Africa Green Hydrogen
Market Growth
The
Middle East and Africa (MEA) region is on the cusp of a green energy
revolution, driven by the accelerated adoption of renewable energy sources, and
this shift is expected to propel the growth of the MEA green hydrogen market.
Green hydrogen, produced through the electrolysis of water using renewable
energy, is gaining traction as a clean and sustainable energy carrier. The MEA
region, renowned for its abundant renewable energy potential, is poised to play
a significant role in the global green hydrogen market, thanks to the rapid
integration of renewable energy sources.
One
of the primary factors contributing to the surge in demand for green hydrogen
in the MEA region is the widespread adoption of renewable energy technologies.
Solar and wind energy, in particular, have seen remarkable growth in the
region. Solar photovoltaic (PV) panels and concentrated solar power (CSP) are
extensively deployed in the Middle East due to the region's high solar
irradiation levels. CSP, in particular, has the potential to generate
substantial amounts of electricity for electrolysis, which is central to green
hydrogen production. Wind energy is also gaining prominence, with wind farms
becoming increasingly common in the region. As
part of global sustainability efforts, many countries in the MEA region have
set ambitious renewable energy targets and invested heavily in renewable energy
infrastructure. These initiatives aim to reduce greenhouse gas emissions,
diversify the energy mix, and create a more sustainable energy landscape.
Governments in the region are proactively supporting the growth of green
hydrogen by promoting renewable energy deployment and incentivizing green
hydrogen projects.
The
industrial sector in the MEA region presents a significant opportunity for the
adoption of green hydrogen. Energy-intensive industries, including
petrochemicals, steel, and cement production, are vital to the region's
economy. Historically reliant on fossil fuels, these industries are now looking
to transition to green hydrogen to reduce their carbon footprint. By doing so,
they can align with sustainability goals, meet environmental regulations, and
contribute to a cleaner and more sustainable energy ecosystem. Additionally,
the MEA region's potential as a global green hydrogen supplier is a driving
force behind the adoption of green hydrogen. As a region with extensive
experience in the energy sector, it can leverage its infrastructure and
expertise to diversify its energy offerings and export green hydrogen to
international markets. This not only enhances the region's energy security but
also positions it as a key player in the global green hydrogen market. As other
countries and regions seek to reduce carbon emissions and transition to cleaner
energy sources, the MEA region's capacity for green hydrogen production becomes
increasingly valuable.
The
accelerated adoption of renewable energy in the MEA region is also catalyzing
the development of green hydrogen technology. Investments in research and
development are increasing, leading to innovations in electrolysis processes,
materials, and integrated renewable energy systems. Research institutions and
universities in the region are actively involved in exploring advanced
solutions to enhance the efficiency and cost-effectiveness of green hydrogen
production.
Therefore, the rapid adoption of renewable energy sources is expected to drive
the growth of the Middle East and Africa green hydrogen market. The abundant
availability of solar and wind energy resources, combined with government
commitments to sustainability, the decarbonization of energy-intensive
industries, and the region's potential as a global green hydrogen supplier,
positions the MEA region as a key player in the global transition to clean and
sustainable energy. As the region harnesses its renewable energy potential and
advances green hydrogen technology, it is likely to play a pivotal role in the
realization of a sustainable and eco-friendly energy future.
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Key Market Challenges
Lack of infrastructure Poses a
Significant Obstacle to Market Expansion
The
lack of infrastructure poses a significant obstacle to the expansion of the
Middle East and Africa (MEA) Green Hydrogen market. Green hydrogen, produced
through the electrolysis of water using renewable energy sources like solar and
wind, is gaining prominence as a clean and sustainable fuel. However, the
development of a comprehensive infrastructure for green hydrogen production,
distribution, and utilization remains a considerable challenge in the MEA
region. The
establishment of electrolysis facilities, transportation, and storage networks,
and refueling or integration into industrial processes is essential for the
growth of the green hydrogen market. The high capital investment required for
building this infrastructure, as well as the need for regulatory frameworks and
technical standards, complicates its development and deployment.
To
overcome this challenge and stimulate the expansion of the MEA Green Hydrogen
market, governments, private sectors, and international organizations should
collaborate to invest in the necessary infrastructure and create an enabling
environment. Building a robust infrastructure network is crucial for the
widespread adoption of green hydrogen and achieving the region's sustainability
goals, including reducing carbon emissions and fostering clean energy solutions.
High Upfront Costs
High
upfront costs are a substantial impediment to the growth of the Middle East and
Africa (MEA) Green Hydrogen market. Green hydrogen, produced through renewable
energy-powered electrolysis, is seen as a promising solution for clean energy
and decarbonization. However, the initial investment required for setting up
green hydrogen production facilities, including renewable energy
infrastructure, electrolysis equipment, and related infrastructure, can be
significant. These
high upfront costs deter potential investors and stakeholders from entering the
green hydrogen market, limiting its growth and adoption. While the long-term
benefits of green hydrogen, such as reduced carbon emissions and sustainable
energy generation, are clear, the capital expenditure needed at the outset can
be prohibitive.
To
address this challenge, governments, industry players, and financial
institutions need to work together to provide incentives, subsidies, and
financial mechanisms that make green hydrogen projects more economically
viable. This could include grants, tax incentives, and innovative financing
models that lower the barrier to entry and promote the development of green
hydrogen infrastructure in the MEA region. Such measures are crucial for
unlocking the potential of green hydrogen and accelerating the transition to a
more sustainable energy future.
Key Market Trends
Government Initiatives and
Incentives
Government
initiatives and incentives are playing a pivotal role in driving the growth of
the Middle East and Africa (MEA) Green Hydrogen market. This trend underscores
the region's commitment to sustainability and clean energy, and it's setting
the stage for a substantial transformation in the energy landscape.
Governments
in the MEA region is actively introducing policies and initiatives to encourage
the production and utilization of green hydrogen, a clean fuel produced using
renewable energy sources like wind and solar power. These initiatives include
financial incentives, subsidies, and regulatory support aimed at accelerating
the development of green hydrogen projects. By providing financial backing and
creating a favorable regulatory environment, governments are incentivizing
private sector investments in green hydrogen infrastructure and technology. The UAE government has greenlit a fresh national hydrogen strategy as part of its broader energy plan. The objective is to achieve an annual production of 1.4 million tonnes of green hydrogen by 2031 and 15 million tonnes by 2050. Oman has introduced a new legal framework via a Royal Decree, granting authority to Hydrogen Oman (Hydrom) to oversee the advancement of the green hydrogen sector. Hydrom will be responsible for project allocation, infrastructure enhancement, and attracting foreign investment.
In 2022, Egypt unveiled its National Hydrogen Strategy, outlining the nation's long-term goals regarding forthcoming hydrogen legislation and policies. Saudi Arabia is currently in the process of developing its National Hydrogen Strategy, with further details anticipated. Additionally,
several countries in the MEA region have set ambitious renewable energy targets
and carbon reduction goals. Green hydrogen is viewed as a critical tool to
achieve these objectives, especially in sectors that are challenging to
decarbonize, such as heavy industry and transportation. The commitment to these
targets is driving substantial investments in green hydrogen production,
storage, and distribution infrastructure.One
notable example is Saudi Arabia, which has unveiled its "Green Hydrogen
Initiative" with the aim of becoming a global leader in green hydrogen
production and export. The United Arab Emirates and Morocco are also actively
pursuing green hydrogen projects, leveraging their abundant renewable energy
resources.
Overall,
government initiatives and incentives are crucial in fostering the growth of
the MEA Green Hydrogen market. They are not only attracting investments but
also positioning the region as a key player in the global transition to clean
and sustainable energy sources. As these initiatives continue to evolve and
gain momentum, they are set to unlock significant economic and environmental
benefits, shaping the future of the MEA's energy landscape.
Growing Demand for Sustainable
Hydrogen Applications
The
Middle East and Africa (MEA) Green Hydrogen market is experiencing remarkable
growth, with the increasing demand for sustainable hydrogen applications
emerging as a pivotal trend. This trend underscores the region's commitment to
clean energy and its recognition of green hydrogen as a crucial solution to
address environmental challenges and meet energy needs sustainably.
Green
hydrogen, produced through the electrolysis of water using renewable energy
sources, is considered a sustainable and environmentally responsible
alternative to traditional hydrogen production methods, which rely on fossil
fuels. The MEA region, endowed with abundant renewable energy resources like
sunlight and wind, is uniquely positioned to harness green hydrogen's
potential. With its growing emphasis on sustainability, countries in the MEA
region are increasingly adopting green hydrogen in various applications. One
of the most notable sectors embracing green hydrogen is transportation.
Hydrogen fuel cell vehicles (FCVs) are gaining traction, particularly in
regions where long-haul transportation is common, such as heavy-duty trucks and
buses. Green hydrogen provides a clean energy source for these vehicles,
offering a sustainable solution for reducing carbon emissions and combating air
pollution.
Moreover,
industries in the MEA region, including chemicals, steel production, and
refineries, are recognizing the value of green hydrogen as a clean feedstock
and energy source. Green hydrogen can be used to replace fossil fuels in
various industrial processes, reducing the carbon footprint of these
operations. The
demand for green hydrogen also extends to power generation, where it can be
used for energy storage and grid balancing, making it an integral part of the
transition to a sustainable and reliable energy system. As
the MEA region aligns with global efforts to combat climate change and reduce
carbon emissions, the growing demand for sustainable hydrogen applications is
driving the expansion of the Green Hydrogen market. This trend not only
promotes economic growth but also positions the region as a key player in the
global shift towards clean and sustainable energy solutions.
Segmental Insights
Production Method Insights
Based
on the production method, the alkaline electrolyzer segment emerged as the
dominant player in the Middle East & Africa market for Green Hydrogen in 2023.
This can be attributed to its cost-effectiveness, reliability, integration with
renewable energy, support for large-scale projects, and alignment with the
region's hydrogen export ambitions. These factors collectively position
alkaline electrolysis as the dominant player in the green hydrogen market in
the Middle East & Africa.
Alkaline
electrolyzers are known for their cost-effectiveness, making them an attractive
option for green hydrogen production in the MEA region. This cost advantage is
especially important in regions where economic efficiency is a priority.
Alkaline electrolysis is a well-established and mature technology with a
history of reliable operation. This maturity instills confidence in investors
and project developers, driving its adoption in the MEA region.
The
MEA region is home to several large-scale green hydrogen projects, many of
which rely on alkaline electrolysis. These projects are often designed to
produce significant amounts of green hydrogen for various applications, such as
transportation and industrial use. Alkaline electrolyzers can effectively
integrate with renewable energy sources like solar and wind power. The MEA
region has abundant solar resources, and the coupling of solar energy with
alkaline electrolyzers aligns with the region's emphasis on renewable energy
solutions.
End User Industry Insights
Based
on the end user industry, the power generation segment is projected to
experience rapid growth during the forecast period driven by the region's
abundant renewable energy resources, the role of hydrogen in energy storage and
grid balancing, decarbonization objectives, and the potential for green
hydrogen to enhance grid stability and support peak power generation. These factors
collectively establish the power generation sector as the dominant player in
the green hydrogen market in the Middle East & Africa.
The
MEA region is blessed with abundant renewable energy resources, particularly
solar and wind power. Green hydrogen production relies on renewable electricity,
making it a strategic choice for the power generation sector in the region. Green
hydrogen can be used as an energy storage solution for intermittent renewable
energy sources. This enhances the reliability and stability of power generation
from renewables, such as solar and wind, and is a key driver for the adoption
of green hydrogen in the power generation sector. The
intermittent nature of renewable energy sources necessitates grid balancing.
Green hydrogen can be used to balance the energy grid by storing excess energy
during periods of high production and releasing it during periods of high
demand. This grid-balancing role is crucial in the power generation sector. Green
hydrogen can be used for peak power generation, especially in areas with high
electricity demand. When electricity demand surges, stored green hydrogen can
be converted back into electricity, contributing to grid stability.
Many
countries in the MEA region have set ambitious decarbonization and renewable
energy targets. Green hydrogen, as a clean energy carrier, aligns with these
goals and serves as a key element in achieving carbon reduction and
transitioning to a low-carbon power generation sector. Green
hydrogen is used in fuel cells to generate electricity for a wide range of
applications, including backup power, stationary power generation, and
transportation. The power generation sector benefits from the integration of
green hydrogen fuel cells to meet energy needs efficiently. Green hydrogen
produced for power generation can also be integrated into industrial processes.
This dual usage ensures efficient utilization of hydrogen and can lead to
synergy between the power generation and industrial sectors.
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Regional Insights
Based
on the region, the Saudi Arabia emerged as the dominant player in the Middle
East & Africa Green Hydrogen market in 2023, is driven by its abundant
renewable resources, strategic location, government initiatives, investment in
infrastructure and research, and a clear vision for a hydrogen-based economy.
These factors collectively establish Saudi Arabia as a dominant player in the
green hydrogen market in the MEA region and beyond.
Saudi
Arabia has vast renewable energy potential, particularly in terms of solar and
wind resources. The availability of these resources is crucial to produce green
hydrogen through electrolysis, making the country a natural leader in the green
hydrogen market. Saudi Arabia's geographic location offers a strategic
advantage for green hydrogen production and export. The country's proximity to
key global markets, as well as its well-established energy infrastructure,
positions it as a dominant player in the export of green hydrogen. The
Saudi government has taken proactive steps to promote the development of a
green hydrogen industry. Vision 2030, Saudi Arabia's ambitious national
transformation plan, includes green hydrogen as a key pillar for economic
diversification and sustainability. Saudi Arabia has attracted significant
investments in green hydrogen projects and infrastructure development. The
country's commitment to building a green hydrogen ecosystem has been a driving
force behind its dominance in the MEA region. Saudi
Arabia has a clear vision for a hydrogen-based economy and has set specific
targets for green hydrogen production and utilization. The country's commitment
to achieving these goals strengthens its position in the green hydrogen market.
The country is actively integrating green hydrogen into various industries,
including energy, transportation, and petrochemicals. This diversification of
applications ensures a strong and sustainable demand for green hydrogen.
Recent Developments
- In
September 2023, NEOM Green Hydrogen Company, a subsidiary of NEOM, a megacity
project in Saudi Arabia, signed a Memorandum of Understanding (MoU) with Air
Products and Chemicals, a global leader in industrial gases and hydrogen
production. The MoU aims to explore opportunities for collaboration on the
development of green hydrogen production facilities in NEOM, with a potential
capacity of up to 1 million tonnes per annum.
- In
August 2023, OQ, ACWA Power, and Air Products and Chemicals announced the
formation of a joint venture to develop a green hydrogen production facility in
Oman. The project, which is expected to have a production capacity of 300,000
tonnes per annum, is expected to be operational by 2029.
- In
July 2023, ADNOC, Abu Dhabi National Oil Company, signed an agreement with
Siemens Energy to explore opportunities for collaboration on the development of
green hydrogen production facilities in Abu Dhabi. The two companies will also
collaborate on the development of hydrogen infrastructure, such as storage and
transportation facilities.
- In
June 2023, Hyphen Hydrogen, a South African-based company, announced that it
had secured funding for its green hydrogen project in Namibia. The project,
which is expected to have a production capacity of 120,000 tonnes per annum, is
expected to be operational by 2026.
- In
May 2023, Swell Energy, a South African-based company, announced that it had
signed an MoU with the Port of Saldanha for its green hydrogen project. The
project, which is expected to have a production capacity of 1 million tonnes
per annum, is expected to be operational by 2030.
Key Market Players
- Abu Dhabi National Oil Company (ADNOC)
- OQ, ACWA Power, and Air Products and Chemicals (Oman)
- ENGIE Group
- Hyphen Hydrogen Energy (Pty) Ltd (“Hyphen”)
- CWP Renewables Pty Ltd
- NEOM Green Hydrogen Co
|
By Production Method
|
By Renewable Source
|
By End Use Industry
|
By Country
|
- Alkaline
Electrolyzer
- Proton
Exchange Membrane Electrolyzer
- Solid
Oxide Electrolyzer
|
|
- Power
Generation
- Automotive
- Chemicals
& Petrochemicals
- Others
|
- Saudi
Arabia
- UAE
- Egypt
- South
Africa
- Qatar
- Kuwait
- Bahrain
- Morocco
- Algeria
- Turkiye
|
Report Scope:
In this report, the Middle East & Africa Green
Hydrogen Market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
- Middle East & Africa Green Hydrogen
Market, By Production Method:
o Alkaline Water Electrolysis
o Proton Exchange Membrane
o Solid Oxide Electrolysis
- Middle East & Africa Green Hydrogen
Market, By Renewable Source:
o Wind
o Solar PV
o Others
- Middle
East & Africa Green Hydrogen Market, By End Use Industry:
o Power Generation
o Automotive
o Chemicals & Petrochemicals
o Others
- Middle
East & Africa Green Hydrogen Market, By Country:
o Saudi Arabia
o UAE
o Egypt
o South Africa
o Qatar
o Kuwait
o Bahrain
o Morocco
o Algeria
o Turkiye
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Middle
East & Africa Green Hydrogen Market.
Available Customizations:
Middle East & Africa Green Hydrogen market report
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Middle East & Africa Green Hydrogen Market is
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