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“This joint study between the German Federal Ministry for Economic Affairs and Climate Action and the Saudi Ministry of Energy looks at the clean hydrogen cooperation potential between Saudi Arabia and Germany. Clean hydrogen refers to renewable and low-carbon hydrogen derived from a production process in which carbon emissions into the atmosphere are avoided and mitigated or captured and utilized. The study also looks at the opportunities and challenges for Germany and Saudi Arabia to cooperate along the hydrogen value chain, i.e., production, supply, distribution, and applications.

Germany and Saudi Arabia are a natural fit for cooperating on hydrogen. Germany is a global leader in the patenting and manufacturing of hydrogen technologies along the entire value chain. Saudi Arabia is a global leader in low-carbon fossil fuel production, has vast CO2 storage capacity, and excellent solar and wind potential. Both Germany and Saudi Arabia host many companies that provide the expert advice, capital, and infrastructure required to scale up the hydrogen market. Together, Germany and Saudi Arabia possess the resources, infrastructure, and skills to produce cost-competitive hydrogen by cooperating across different value chain parts.

Several enabling mechanisms are needed to support the deployment of hydrogen across Germany’s and Saudi Arabia’s value chain of domestic production and demand and international export, including:

  • Support and enforcement mechanisms.
  • Demonstration, pilots, and R&D.
  • Standards and technical regulations, including standardised certifications or guarantees of origin for renewable and low-carbon hydrogen.
  • Awareness and partnership building across the value chain globally.

    In this context, a Memorandum of Understanding (MoU) on Saudi-German hydrogen cooperation was signed in March 2021

    The study was conducted by Guidehouse, King Abdullah Petroleum Studies and Research Center (KAPSARC) and the King Abdullah University of Science and Technology (KAUST)”