Why Saudi Arabia Is Primed to Become a Global Leader in Hydrogen Supply

Why Saudi Arabia Is Primed to Become a Global Leader in Hydrogen Supply

When one thinks of Saudi Arabia as far as natural resources are concerned, one might be forgiven for thinking purely in terms of crude oil—and natural gas to a lesser extent. After all, the Kingdom has long been one of the world’s top oil-producing nations; it is also the leading member nation of the global oil-producing cartel OPEC (Organization of the Petroleum Exporting Countries) and is arguably home to the world’s second-largest proven oil reserve. But in recent times, Saudi Arabia has been pushing to bolster its hydrogen-production capacity as a low-carbon alternative to oil to such an extent that much of the current analysis of this potentially game-changing clean-energy source puts the Gulf state at the centre of global production over the next decade.

Described by the International Energy Agency (IEA) as a “versatile energy carrier”, hydrogen could well be a key player in the world’s transition to green renewable-energy sources. Indeed, Bank of America predicts that hydrogen will replace 25 percent of global demand for oil by 2050. Should such an estimate come to fruition, it is highly likely that some regions will require more hydrogen than their production capacity can support. As such, Saudi Arabia and