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The Middle East and North Africa (MENA) region is rapidly solidifying its role as a global hydrogen powerhouse. According to Dii Desert Energy, hydrogen projects in MENA jumped from 67 at the end of 2023 to 117 by the end of 2024, with an impressive 90% classified as green hydrogen. This expansion signals a significant step forward in the global energy transition, as the region leverages its abundant solar and wind resources to produce large-scale, low-emission hydrogen. With an estimated 400 GW of renewable energy capacity supporting these projects, MENA is poised to become a key supplier to international markets while increasing local hydrogen consumption.
Why MENA’s Hydrogen Growth Matters
The surge in hydrogen projects across MENA directly impacts the cost and availability of green hydrogen worldwide. As the number of large-scale projects grows, economies of scale and infrastructure improvements help drive down production costs, making hydrogen more competitive with fossil fuels. Additionally, the increasing focus on local offtake suggests that countries within MENA are beginning to integrate hydrogen into their own industries, supporting energy security and economic diversification. The region’s ability to export green hydrogen at scale will also play a crucial role in meeting global demand, particularly in Europe and Asia, where hydrogen import strategies are gaining momentum.
New Industry Developments: Spot Pricing and Infrastructure Expansion
In a separate industry milestone, Plug Power has launched the first-ever spot pricing program for liquid green hydrogen, a move that could introduce greater transparency and flexibility in hydrogen trading. Each week, S&P Global Platts will publish a price based on Plug Power’s real-time supply and demand, allowing buyers to execute transactions at set rates. This pricing mechanism is expected to improve market liquidity and reduce price volatility, making green hydrogen more accessible to industries looking to transition away from fossil fuels.
Meanwhile, HydroFleet is investing $33 million in a hydrogen production and fueling station in Georgia, USA, targeting the heavy-duty transport sector. With over 80,000 hydrogen-powered forklifts, 18,000 passenger vehicles, and 570 hydrogen-powered buses and trucks in operation, the U.S. hydrogen mobility market is expanding rapidly. The new station will help address infrastructure gaps, making hydrogen fueling more convenient for logistics and freight companies.
Challenges and Strategic Adjustments
Despite the strong momentum, some companies are reevaluating their hydrogen strategies. Danish energy giant Ørsted has announced a shift in focus, deprioritizing its liquid e-fuels project FlagshipONE due to challenging market conditions. However, the company remains committed to renewable hydrogen as a key component of offshore wind development. This strategic adjustment underscores the financial pressures in the hydrogen sector, where securing long-term profitability remains a challenge despite growing policy support and investment.
The Future of Hydrogen in MENA and Beyond
With MENA leading the charge in large-scale green hydrogen projects, the global hydrogen economy is set for accelerated growth. The region’s ability to produce hydrogen cost-effectively, combined with new pricing models and infrastructure expansion, is bringing the industry closer to widespread adoption. As governments and businesses continue to refine their strategies, investments in hydrogen production, transport, and end-use applications will shape the future of clean energy and decarbonization efforts worldwide.
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