As Saudi Arabia embarks on its ambitious journey to diversify its economy and reduce fossil fuel dependence, green hydrogen has emerged as a cornerstone of its energy transition strategy. France, with its advanced expertise in hydrogen technology, is poised to play a crucial role in supporting the Kingdom’s alternative energy ambitions. This collaboration promises significant economic benefits and far-reaching geopolitical implications.
Saudi Arabia’s Green Hydrogen Ambitions
Central to Saudi Arabia’s energy transition is Vision 2030, which aims to diversify the economy and develop public service sectors. A key target is generating 50% of energy from renewable sources by 2030. The Kingdom’s abundant solar resources and available land make it an ideal location for green hydrogen production.
The $5 billion NEOM Green Hydrogen Company initiative, a joint venture between ACWA Power, Air Products, and NEOM, aims to produce 650 tons of carbon-free hydrogen per day by 2026, making it the world’s largest green hydrogen plant. The project has secured $6.1 billion in non-recourse financing, demonstrating strong investor confidence.
France’s Green Hydrogen Expertise
France has positioned itself as a leader in green hydrogen technology, with a national strategy backed by an €8.2 billion investment. The country aims to develop 6.5 GW of electrolysis capacity by 2030. Companies like Air Liquide, Engie, and TotalEnergies are at the forefront of hydrogen technology development. Notably, Lhyfe has launched innovative projects, including the world’s first offshore green hydrogen production platform, placing France in a strong position to support Saudi Arabia’s green hydrogen ambitions.
Opportunities for French-Saudi Collaboration in Hydrogen
France’s technological expertise and Saudi Arabia’s renewable energy resources create significant collaboration opportunities. French companies are already contributing to Saudi Arabia’s green hydrogen value chain, from production technology to infrastructure development.
Air Liquide, for instance, has made significant strides in Saudi Arabia’s hydrogen sector. Their flagship project in Yanbu, completed in 2015 with over €350 million investment, delivers 340,000 Nm³/hour of hydrogen, primarily serving the YASREF refinery. This project increased Air Liquide’s global hydrogen capacity by 20% and set a new safety benchmark with over 6.2 million accident-free work hours.
Expanding its footprint, Air Liquide Arabia invested over $500 million in Yanbu, Jubail, and Qurrayah, establishing a critical hydrogen pipeline infrastructure that bolsters energy efficiency and creates employment opportunities for Saudi nationals.
Finally, looking to the future, Air Liquide has signed a non-binding Memorandum of Understanding with Saudi Aramco, aiming to explore low-carbon hydrogen and ammonia production, as well as Carbon Capture & Sequestration (CCS) technologies. This collaboration, part of the Namaat industrial investment program, positions Air Liquide at the forefront of Saudi Arabia’s transition to a low-carbon economy, promising to drive innovation and sustainable growth in the years to come.
ENGIE has also forged a strategic alliance with Saudi Arabia’s Public Investment Fund (PIF) to propel the Kingdom’s green hydrogen ambitions. This multi-billion-dollar initiative aims to position Saudi Arabia as a leading global supplier of hydrogen and its derivatives, encompassing the entire green hydrogen value chain.
Although specific investment amounts and job creation figures remain undisclosed, the long-term nature of the MoU suggests significant local employment opportunities, enhancing Saudi Arabia’s energy transition and international competitiveness in the green hydrogen market.
Moreover, Tractebel, a subsidiary of ENGIE, is leveraging its expertise in the global green hydrogen landscape. Notably, it played a pivotal role in Egypt’s green hydrogen sector, collaborating on a 200 MW pilot project aimed at e-methanol production, targeting 4 GW capacity. While Tractebel’s direct involvement in Saudi Arabia remains unconfirmed, its robust Middle East presence, supported by 200 experts, is undeniable. Tractebel’s commitment to carbon neutrality and involvement in France’s largest industrial green hydrogen project, Masshylia, in partnership with Engie and TotalEnergies, which aims to avoid up to 33,500 tons of carbon emissions annually, highlight its readiness to contribute to Saudi Arabia’s green hydrogen ambitions.
Finally, EDF (Électricité de France) is making significant inroads into Saudi Arabia’s renewable energy sector, spearheading transformative projects aligned with the Kingdom’s sustainability goals. EDF’s involvement in the 1,100 MW Solar IPP project in Al Dhafra, secured through a partnership with Masdar and Nesma Renewable Energy, exemplifies its commitment to the clean energy transition.
Beyond solar, EDF plans to develop 3 GW of low-carbon hydrogen projects globally by the end of the decade, underscoring its holistic approach to sustainable energy solutions. With a strong regional presence, EDF contributes to energy diversification and economic growth in the Middle East.
Other opportunities for French companies in the hydrogen sector in Saudi Arabia
French companies beyond major conglomerates are actively supporting Saudi Arabia’s hydrogen sector development.
For example, Gaussin and Saudi Aramco’s 2021 partnership aims to establish a cutting-edge facility for hydrogen-powered vehicles in Saudi Arabia. The collaboration includes a feasibility study for manufacturing and hydrogen distribution, with Aramco’s LAB7 integrating composite materials to enhance vehicle performance. A highlight is Gaussin’s hydrogen-fueled truck participating in the 2022 Dakar Rally, sponsored by Aramco.
This initiative, part of the Namaat program, aims to boost economic growth and employment, though specific figures are undisclosed. It reflects Saudi Arabia’s ambition to lead in hydrogen-powered vehicle manufacturing in the Middle East.
In addition, French company Axens has also partnered with Aramco through a 2021 MoU, focusing on local manufacturing and maintenance of furnaces and fired heaters. This builds on their existing relationship and aligns with Vision 2030’s localization goals. Axens’ regional presence, including a catalyst plant in Saudi Arabia, brings valuable expertise to enhance domestic manufacturing capabilities in energy infrastructure.
As the project unfolds, it is expected to play a crucial role in supporting the Kingdom’s burgeoning hydrogen industry and other energy sectors, marking a significant step towards reducing import reliance and fostering local technological prowess.
Finally, Alteia, a French AI specialist, signed a MoU with Aramco in December 2021 to develop AI-driven geospatial imagery capabilities. Alteia plans to establish a Saudi subsidiary for visual intelligence applications, supporting Aramco’s Namaat program and enhancing energy project management efficiency. This move aligns with Aramco’s broader Namaat industrial investment program, underscoring its commitment to integrating advanced technologies into its operations. It also marks a significant step towards enhancing the efficiency and effectiveness of hydrogen and other energy projects across the Kingdom.
Geopolitical Implications of the India-Europe Corridor
France, of course, is not the only country that has something to offer, and competition from other technologically advanced countries like Germany and Japan in the Saudi market should not be underestimated. Yet, the India-Middle East-Europe Economic Corridor (IMEC) offers the French-Saudi partnership in green hydrogen the opportunity to reshape energy dynamics in the Middle East.
Indeed, the India-Middle East-Europe Economic Corridor (IMEC), unveiled at the G20 summit in New Delhi in September 2023, represents a groundbreaking initiative in global connectivity and clean energy transportation. A key component is the integration of hydrogen infrastructure, positioning Saudi Arabia as a crucial hub.
The Kingdom, under Crown Prince Mohammed bin Salman, has committed to developing pipelines for clean hydrogen export and import, aligning with its vision to lead in renewable energy.
The project’s initial phase, starting in early 2024, involves detailed planning and feasibility studies. By 2025, construction of hydrogen pipelines will begin, with Saudi Arabia playing a pivotal role. Subsequent phases will see the expansion of digital and energy connectivity, with the entire corridor expected to be operational by the early 2030s.
French companies, particularly those specializing in hydrogen technology like Air Liquide, stand to benefit significantly from this project, contributing their expertise to ensure efficient and sustainable energy transport across the corridor.
Future Outlook
The green hydrogen market in Saudi Arabia is projected to grow significantly in the coming years. The Kingdom’s potential to become a major exporter of green hydrogen to Europe and Asia could reshape global energy trade patterns.
As Yousef Al-Shammari, a senior energy research fellow at Imperial College London, noted, “If you want to produce green hydrogen in Germany, it’s going to cost you $5 a kilogram. But if you’re going to produce it in Saudi Arabia, it’s going to cost you between $1 and $2 a kg.”
In conclusion, the Franco-Saudi collaboration in green hydrogen presents a compelling opportunity for both nations to lead the global energy transition.
As Saudi Arabia leverages its natural resources and France contributes its technological prowess, this partnership could set a new standard for international cooperation in sustainable energy development.
Participation in Hyvolution Middle East 2025
French companies are encouraged to actively engage with the Saudi market, especially during the Hyvolution Middle East trade show, which GL Events plans to organise in Riyadh in 2025.
Hyvolution Paris, one of the leading global events dedicated to hydrogen, already attracts more than 110,000 visitors and 600 exhibitors from 80 countries every year.
This professional summit will be the best occasion for French companies to come and explore the Saudi market, discover all the opportunities offered to them, and meet potential partners in person.
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So don’t hesitate to contact us, if you wish us to help you prepare and organise your participation in the Hyvolution Middle East 2025.