Middle East & Africa Green Hydrogen Market: Current Analysis and Forecast (2024-2032)

The Middle East and Africa is poised to become major players in the burgeoning green hydrogen market, driven by abundant renewable energy resources, government support, and strategic partnerships. The region's vast solar and wind potential offers a cost-effective pathway to produce green hydrogen through electrolysis, positioning it as a key solution for decarbonizing hard-to-abate sectors like heavy industry and transportation. For instance: In Oman, the HYPORT Duqm project, a collaboration between OQ and DEME Concessions, aims to produce 250-500 megawatts of green hydrogen by 2029, powered by solar and wind energy. Egypt is also emerging as a hub, with the Suez Canal Economic Zone attracting significant investments in green hydrogen projects. For instance, Scatec ASA, Fertiglobe, and the Sovereign Fund of Egypt have partnered to develop a 100-megawatt green hydrogen facility in Ain Sokhna.

Based on the electrolyzer, the green hydrogen market is segmented into proton exchange membranes, alkaline electrolyzers, and others. Amongst these, alkaline electrolyzers have the highest market share as it is the most common and mature technology used for green hydrogen production. Additionally, alkaline electrolyzers are cost-effective and have a long operational life.

Based on source, the green hydrogen market is categorized into solar energy, wind energy, and others. Solar energy contributes significantly to the green hydrogen production process, and its production is considered a promising way to use solar energy and combat climate change caused by the burning of fossil fuels.

Based on end-users, the green hydrogen market is categorized into refining, ammonia, and others. The refining segment acquired the largest share as the refinery is the large industrial consumer of hydrogen, most of which is currently supplied by fossil fuels. The rising need to meet the net zero emissions targets has escalated the demand for green hydrogen in industries to reduce carbon emissions. Moreover, the government provides incentives to use green hydrogen in refineries, and exempting electrolyzers from grid fees, taxes, and levies is further accelerating the market share of refineries.

For a better understanding of the market adoption of the MEA green hydrogen industry, the market is analyzed based on its presence in countries such as (Saudi Arabia, UAE, South Africa, and the Rest of MEA). The UAE's commitment to green hydrogen is evident in its ambitious hydrogen strategy, aiming to become a leading exporter by 2030. Recent initiatives solidify this ambition. For instance, the Abu Dhabi Hydrogen Alliance, launched in 2020, brings together key players to develop the hydrogen economy. Moreover, collaborations like the partnership between Mubadala, ADNOC, and ADQ to establish a global green hydrogen platform demonstrate the UAE's initiative-taking approach.

Some major players operating in the market include NEOM Helios, Oman Acme Group, Air Product & Chemical Inc, Cummins Inc, Engie SA, L'Air Liquide SA, Linde Plc, Nel ASA, Siemens Energy AG, and Toshiba Energy .