Saudi Green Hydrogen Strategy Gains Momentum with 48 GWh Battery Buildout
Saudi Arabia is accelerating its renewable energy transformation, deploying vast solar farms and battery arrays to power its green hydrogen ambitions. With over 40 gigawatts (GW) of solar capacity planned and 48 gigawatt-hours (GWh) of battery energy storage targeted by 2030, the kingdom is positioning itself as a global clean energy leader while reducing its reliance on oil-fired electricity.
40 GW Solar Farms to Power Electrolyzers for Hydrogen Production
Central to the Saudi Green Hydrogen Strategy is the rollout of solar farms across the desert. These installations, some spanning thousands of acres, will generate low-cost electricity to run electrolyzers—machines that split water into hydrogen and oxygen using renewable energy.
The flagship NEOM Green Hydrogen Project, a joint venture between ACWA Power, Air Products, and NEOM, is now valued at $8.4 billion. It aims to produce 650 tons of green hydrogen daily by 2026, converted into ammonia for export. This facility alone will require over 4 GW of solar and wind power to operate efficiently.
48 GWh Battery Arrays to Enable 24/7 Hydrogen Output
To ensure continuous hydrogen production, Saudi Arabia plans to deploy 48 GWh of battery energy storage systems (BESS) by 2030. These arrays will store solar energy harvested during the day and release it at night, ensuring uninterrupted electrolyzer operation.
The kingdom is also testing vanadium flow batteries for long-duration storage, particularly suited to extreme desert climates. These innovations support grid stability and reduce curtailment of excess solar power.
Export Strategy: Hydrogen as the New Oil
Saudi Arabia’s pivot to green hydrogen is a cornerstone of its economic diversification. By exporting hydrogen—especially to Europe and Asia—the kingdom aims to create a new revenue stream that complements its traditional oil exports.
Global hydrogen demand is projected to grow 30–40% annually, with green hydrogen expected to dominate by 2050. Saudi Arabia’s early investments and strategic partnerships position it to capture a significant share of this emerging market.
Cost Advantage: Solar at $10–15/MWh Enables $2.16/kg Hydrogen
Saudi Arabia’s solar generation costs are among the lowest globally, ranging from $10 to $15 per megawatt-hour (MWh). This cost advantage translates into competitive hydrogen pricing.
The NEOM project targets a production cost of $2.16 per kilogram, significantly below the global average of $2–$7/kg. This positions Saudi green hydrogen as a viable alternative to fossil-derived hydrogen.
Strategic Vision: 4 Million Tons of Hydrogen by 2035
The Saudi Green Hydrogen Strategy sets a long-term goal of producing 4 million tons of green hydrogen annually by 2035. Achieving this will require over 50 GW of renewable energy capacity, including solar, wind, and storage.
To meet these targets, Saudi Arabia is investing in R&D, forming global partnerships, and streamlining regulations. ACWA Power alone raised $1.9 billion in 2025 to expand its hydrogen and renewables portfolio, including export pipelines and desalination integration.
Also Read: Saudi Green Economy Steps: $8.3B Investment
