Could the hope for a more sustainable future really come from hot, sandy nations? Here's how sun-drenched countries are set to shape the future of green hydrogen.
For years, deserts were dismissed as lifeless and inhospitable. Now, they’re at the heart of a green energy revolution. Nations like Saudi Arabia, Morocco, and Australia are turning these sun-drenched landscapes into hubs for green hydrogen production.
It’s not just the sunshine that makes deserts ideal for this kind of energy transformation – it’s the balance of sun and wind. In Morocco and Saudi Arabia, the natural rhythm delivers solar power by day and wind energy by night.
This around-the-clock generation window lets electrolyzers run at higher capacity, improving the economics of green hydrogen production.
Saudi Arabia’s Bold Vision
In the Saudi desert, the NEOM project is drawing global attention. Valued at $8.4 billion, it plans to build a 2.2GW green hydrogen facility in Oxagon, NEOM’s industrial hub.
Led by the NEOM Green Hydrogen Company – a joint venture of ACWA Power, Air Products, and NEOM—the project is scheduled to go online by late 2026. Once operational, it will produce 600 tonnes of green hydrogen per day, to be converted into green ammonia for export.
This bold initiative highlights Saudi Arabia’s push to diversify its energy portfolio and positions the kingdom as a major force in the emerging hydrogen economy.
NEOM also signals a shift in national identity – recasting Saudi Arabia from an oil-dependent state to a clean energy innovator.
In this context, hydrogen is more than just a fuel – it’s a diplomatic asset, a long-term export strategy, and a key pillar of Saudi Arabia’s Vision 2030 to reduce reliance on hydrocarbons.
Morocco’s Geo-Economic Leverage
Clean hydrogen is being explored across a wide range of applications, but its most immediate impact is in transportation and industrial sectors. Hydrogen-po
Across the Mediterranean, Morocco is leveraging its rich solar and wind resources to establish itself as a key player in green hydrogen. So far, the government has approved six hydrogen-based projects, drawing $32.7 billion in investment.
The projects span up to 30,000 hectares and involve global players like ACWA Power and Morocco’s own Nareva, with production aimed at green ammonia, synthetic fuels, and green steel.
Morocco’s strategy is as geopolitical as it is technological. With Europe racing to replace Russian gas and secure clean energy imports, Morocco offers more than proximity – it brings political stability and a mature infrastructure.
Pipelines already link Morocco to Spain, and hydrogen could eventually flow through similar channels – positioning the country as a strategic green bridge between continents.
wered trains, buses, trucks, and even airplanes are in development, offering emission reductions in sectors that have long been difficult to decarbonize.
Unlike battery-electric systems that rely on heavy lithium-ion batteries, hydrogen fuel cells provide a lighter, more efficient alternative for long-haul travel and heavy-duty operations.
Industries like steel production and chemical manufacturing, which rely heavily on fossil fuels, are beginning to shift. Traditional steelmaking emits large amounts of carbon dioxide due to its dependence on coal.
Green hydrogen enables steel production with minimal emissions, easing the environmental and health burdens of traditional methods. Lower industrial emissions mean less exposure to harmful pollutants, resulting in fewer cases of lung and heart-related illnesses in nearby communities.
Yet, Hydrogen is no silver bullet. Its benefits depend on how it’s produced and integrated into current systems. Grey hydrogen, made from natural gas, emits significant carbon dioxide, and even green hydrogen requires substantial renewable energy. Without the right infrastructure, the transition may be slow, costly, and inefficient. Safety concerns around hydrogen storage and transport must also be addressed to build public trust.
Australia’s Renewable Ambitions
Australia is tapping into its vast open landscapes and abundant renewables to emerge as a major player in green hydrogen. The $12.5 billion CQ-H2 project in Gladstone is one of several large-scale initiatives, aiming to produce up to 200 tonnes of hydrogen each day.
Australia’s east coast is becoming a key hub for hydrogen development, with ports in Queensland and New South Wales targeting long-term export agreements with Japan, South Korea, and Taiwan.
Australia’s hydrogen roadmap aims to place the country among the world’s top three exporters by 2030. With abundant land, strong policy backing, and deep experience in resource logistics, that target appears well within reach.
Challenges remain. Electrolyzer supply chains are stretched, and the domestic grid must scale quickly to support widespread green energy production. Still, momentum is building, and – for now – political will is aligned with market forces.
A New Energy Map
Green hydrogen isn’t just about decarbonizing industry – it’s about redrawing the global energy map.
Desert nations that were once sidelined or overly reliant on fossil fuels are now entering a new era, where controlling electrons may prove as strategic as controlling oil.
Saudi Arabia, Morocco, and Australia are building more than energy infrastructure – they’re building global influence. Controlling future hydrogen routes could mean shaping shipping lanes, supply chains, and even food systems, as hydrogen powers fertilizer and water desalination.
As hydrogen projects move from vision to reality, Hydrolite is helping lay the technical groundwork behind them. Built around advanced AEM (Anion Exchange Membrane) electrolysis, our systems deliver high efficiency and low maintenance – ideal for regions rich in solar and wind power.
Through partnerships with global integrators and clean energy developers, we’re already powering pilot projects in arid zones – showcasing how decentralized AEM stacks can support large-scale hydrogen plants or operate independently as modular units.
Whether powering large hydrogen hubs or enabling flexible production in remote, sun-rich regions, Hydrolite is proud to be part of the desert’s quiet energy shift.
