Green hydrogen emerges as a promising solution to the intermittency of renewable energy resources, offering storage and transport capabilities essential for a sustainable energy future. However, establishing a viable green hydrogen supply chain poses multifaceted challenges, including high conversion costs and logistical complexities. Germany’s proactive hydrogen diplomacy exemplifies the strategic importance of securing reliable supply chains, with a potential trading route emerging between Germany and the Gulf region.
The analyses highlight Saudi Arabia’s comparative advantage in green hydrogen production, driven by its abundant renewable energy resources and land availability. For potential exporters like Saudi Arabia, addressing the strategic aspects is essential to capitalise on their renewable energy potentials and establish themselves as key players.
This paper “MENA region as a potential hydrogen supplier for the European market: analysing a prospective route between Kingdom of Saudi Arabia and Germany” by The Oxford Institute for Energy Studies demonstrates that focusing on ammonia production and exploring other hydrogen-based value chains can offer a more secure strategy via negating the location-based competitive edge of potential competitors.
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