Bold policy to build clean hydrogen industry in Saudi Arabia

By
Pinar Kilavuzlu
November 25, 2025

Bold policy to build clean hydrogen industry in Saudi Arabia

ZETA looks closely at How to Boost Clean Hydrogen in Saudi Arabia in a new op-ed on World Energy Opinion, published by Energy Intelligence.  

The op-ed draws directly upon current Saudi research and industry initiatives that guide the recommendations.

Coauthors are Jan Haizmann, CEO, ZETA, and Jan Frederick Braun, Senior Expert Hydrogen Economy at the Fraunhofer Institute for Solar Energy Systems ISE.

They call for a shift in focus from export markets, which have yet to arise, to the large domestic market for hydrogen that exists in Saudi Arabia. This national market should become the basis for future exports.

Big ambitions, bold policies

To achieve Saudi Arabia’s ambition to become a major global player in low-carbon hydrogen, the authors propose three core policies.

Carbon pricing

Local demand for low-carbon hydrogen needs a carbon pricing mechanism. Recent research from KAPSARC and KAUST contains insights into what an effective carbon price might be in Saudi Arabia.

Public procurement

The Kingdom’s main demand sectors (petrochemicals, cement, ammonia, and steel) provide a solid foundation for domestic demand for low-carbon hydrogen. This approach finds support in the IEA’s Global Hydrogen Review 2025, which notes that public procurement is a powerful policy tool to unlock near-term demand.

Local innovation

Saudi initiatives to accelerate hydrogen technology transfer and local innovation are essential for positioning the Kingdom as a globally competitive market. The collaboration between StargateHydrogen, a European deep-tech company specializing in green hydrogen technologies, and the Research, Development, and Innovation Authority of Saudi Arabia is a prime example.

Getting started

These policies are challenging but, the authors strongly believe, necessary for Saudi Arabia to become a global leader in low-carbon hydrogen.

Creating this national hydrogen market will require bold policy. The authors acknowledge it will require a delicate socio-economic balancing act.

The difficulty of the low-carbon hydrogen balancing act will require Saudi Arabia to take the long view, but the opportunity is there for Riyadh to begin implementing a delicately balanced, Saudi-led strategy that builds domestic demand in the Middle East now, while preparing to seize export opportunities when they eventually arise.

Read the full op-ed here.

Pinar Kilavuzlu
Zero Emissions Traders Alliance