Green hydrogen has become a turning point for the global energy transition and is generating increasing interest due to its potential to decarbonize industrial and transportation sectors. As global leaders and energy companies invest heavily in this clean alternative , competition is intensifying and new solutions are emerging to overcome the technical and environmental challenges of large-scale production.
The race to lead the green hydrogen economy is redefining the strategies of countries and companies. The Middle East, North Africa, and Latin America are positioning themselves as key regions, thanks to their renewable energy potential and their ambition to become energy partners for Europe and the rest of the world.
Pioneering megaprojects in Saudi Arabia: Yanbu and NEOM
Saudi Arabia is setting itself apart in the field of green hydrogen with two of the most ambitious projects on the planet. On the one hand, the state-owned energy company ACWA Power and the Spanish-Chinese consortium formed by Técnicas Reunidas and Sinopec have taken on the challenge of designing a gigantic complex in Yanbu , on the Red Sea coast. This facility will feature electrolyzers capable of generating up to 4.000 tons of green ammonia per day in each of its first two blocks, each powered by 2,2 GW of electrolysis capacity.
The region is already home to the NEOM project, another Saudi icon. NEOM combines urban planning, innovation, and energy production . The NEOM Green Hydrogen Company (NGHC), a consortium of ACWA Power, Air Products, and NEOM itself, is building a plant that will integrate 4 GW of renewable capacity to power electrolysis modules, smart technology, and state-of-the-art storage systems. When fully operational, it will be able to produce 1,2 million tons of green ammonia annually , preventing the emission of up to 5 million tons of COâ‚‚ per year.
Both initiatives aim to position the region as a global epicenter for renewable hydrogen, thanks to synergies between solar, wind, and automation. Saudi Arabia plans to invest up to $270.000 billion in the sector by 2030 and expects to export 10% of the world's hydrogen.
Technological solutions: water, efficiency and safety
The expansion of green hydrogen is not without its challenges. The water consumption required for electrolysis continues to worry researchers and developers , especially in water-stressed areas. New proposals aim to use wastewater or appropriately treated seawater, reducing the pressure on potable water resources . For example, recent studies are exploring the use of metals present in wastewater as natural catalysts, increasing electrode efficiency and decreasing the need for costly purification.
Industrial safety aspects are also gaining importance, given that hydrogen is volatile and requires appropriate infrastructure for its handling, storage, and transport. Cooperation between insurers, manufacturers, and operators is leading to new policies and risk management strategies, supporting projected investments exceeding $680.000 billion by 2030 and a fivefold increase in hydrogen demand by 2050.
Furthermore, digitalization and artificial intelligence facilitate advanced monitoring and automated control of plants, from renewable generation to the management of green ammonia production and export, allowing for improved efficiency and reduced operating costs.
Latin America and Africa: Uruguay and Morocco in the global race
In South America, Uruguay is pursuing decarbonized mobility after having already surpassed 90% renewable electricity generation. The country is promoting four green hydrogen projects, geared towards both export and domestic heavy transport, through public-private partnerships and international cooperation. Among the most advanced plans are initiatives that prioritize the use of wind and solar energy and include the generation of methanol and synthetic fuels. Local challenges include water management and integration with the surrounding communities , as evidenced by the review of projects that initially planned to use protected underground resources.
Morocco, for its part, has forged strategic alliances with European companies to develop the Chbika project , which aims to generate 1 GW of renewable energy to produce green hydrogen and transform it into 200.000 tons of green ammonia annually for the European market. The country plans to reach 52% of its installed energy capacity from renewable sources by 2030 and produce 10 GW of clean energy before the end of the decade. However, water scarcity emerges as a key challenge, given the crucial role of this resource in hydrogen production through electrolysis.
Sector outlook and short- and medium-term future
The global dynamics of green hydrogen are characterized by international cooperation, technological innovation, and adaptation to environmental and economic challenges. With over 1.500 projects underway worldwide and the direct involvement of governments, multinational corporations, and sovereign wealth funds, the industry is aiming for the progressive integration of renewable hydrogen into industries, transportation, and electrical systems.
Support from the insurance sector and standardized safety will help build trust and encourage sustainable investment. Infrastructure development, lower costs , and solutions to water and logistical challenges will accelerate the integration of green hydrogen into the global energy mix.
The commitment to pioneering projects, research into efficiency and the circular economy, and cooperation between regions with competitive renewable resources define a scenario in which green hydrogen is moving from a promise to a growing reality, with the potential to transform the energy sector and open up new opportunities for global sustainability.
