Qatar leads countries that produce green hydrogen cheaper than blue

By : Dr. Franyi Sarmiento, Ph.D., Inspenet, March 9, 2022

Green hydrogen has positioned itself as one of those with the greatest potential for the future. But their high costs hinder their real applications. However, some states in the Middle East are managing to produce it cheaply.

According to data from the consultancy Aurora Energy Research, green hydrogen is already cheaper to produce than blue (processed from gas derivatives) in the Middle Eastern states; Saudi Arabia, United Arab Emirates (UAE), Qatar and Oman.

This is due to the region’s low energy costs. The cheapest place for green hydrogen would be Qatar, costing just $2.62 per kilo. It is followed by Saudi Arabia ($3.23/kg), Oman ($3.58/kg) and the United Arab Emirates ($4.51/kg).

It turns out that the big oil producers are the first to come up with cheap green hydrogen. Betting on the expansion of renewable energies, which allow them, for example; to Saudi Arabia to sell energy from some of its large solar parks at just 10 dollars/MWh, or just 8.8 euros per MWh.

By contrast, green hydrogen prices in Europe are much higher than blue today, despite record gas prices and CO 2 emissions. It is estimated that in places like the United Kingdom or the Netherlands the current price is around $18.47/kg and $14.66/kg, respectively. Figure that we can compare with the $10.55/kg and the $6.49/kg of blue.

Analysts agree that without a rapid and massive expansion of renewables or the entry of heavy public subsidies, economic competitiveness in Europe will not be achieved, at least until 2030.

If you want to know more about clean energy, we invite you to read our scientific article entitled: “Will hydrogen be the clean fuel of the future?” at the following link:

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