The Financial Times recently published a report asking the big question, “can Saudi Arabia become the world’s biggest hydrogen producer?”

So, can it?

The article highlighted some of the breakthroughs that the Kingdom has made by undertaking to build the biggest hydrogen plant in the world at giga-project NEOM with a capacity of 650 tons of environmentally friendly green hydrogen.

The facility is being built by US-based Air Products, and Saudi ACWA Power, and is due to be completed by 2026.

Saudi Arabia’s interest in hydrogen has been driven by its desire to diversify its exports, develop new industrial sectors, and provide jobs in new hi-tech industries.

But the Kingdom is not alone, with many of the world’s oil and gas producers doing the same in order to decarbonize.

Russia is aiming for 20 percent of the hydrogen market by 2030. Also, the UAE has announced its own hydrogen plant and intention to gain a 25 percent market share by the same year. Oman, Morocco, and Egypt have all revealed plans for plants, too.

Yet it is the sheer size of the Saudi hydrogen plant in NEOM that makes it stand out against its competitors. It is clear that Saudi Arabia does not just want to be in the hydrogen business, but wants to dominate it, similar to the way it has dominated the oil business over the last 60 years.

The Kingdom has clear advantages, as renewable green hydrogen can be produced at a very low cost in places with strong winds, high solar irradiation, and plenty of land for gigantic wind and solar projects. All of these are available in abundance in the country.

Green hydrogen is made using renewables. So, it is clearly the cleanest. But in addition, Saudi Arabia also plans to become a leader in the production of blue hydrogen.

Blue hydrogen is produced using gas but with emissions from carbon being captured, used, and stored. Saudi Arabia is leading the move toward carbon capture, utilization, and storage as part of its efforts with consumers to make the use of oil cleaner and greener. Blue hydrogen addresses both issues: CCUS and providing clean fuel to the world.

But there are hurdles to overcome if the Kingdom wants to be the world’s dominant force in this area. It must be price competitive. Also, the logistics for storage and transporting green hydrogen to market must be worked out. Historically, green hydrogen is usually used close to where it is produced.

However, Saudi Arabia is also tackling the issue of transporting hydrogen, as shown in 2020 when Saudi Aramco shipped 40 tons of blue ammonia to Japan. This was the world’s first demonstration of blue ammonia supply chains, entailing the production and international shipping of the product. Converting hydrogen into ammonia makes it easier to ship, which is one of the hurdles of exporting hydrogen that needs to be overcome.

Additional research is needed to ensure these hurdles are cleared. So, it was welcoming news when the US Department of Energy announced that it would be providing funding for research and development to advance clean hydrogen as a carbon-free fuel for transportation, industrial use, and electricity production in America.

The department intends the funding to leverage new and innovative approaches to producing clean hydrogen at lower costs from materials including solid waste, coal waste, waste plastics, and biomass with carbon capture.

Historically, hydrogen was, and still is, made mostly from gas, without CCUS, for fertilizer production and refining. But recently, low-cost renewable energy advanced technologies have demonstrated the ability to transport the product, which is a means of lowering the cost of producing and using hydrogen.

Hydrogen is attractive as it can lower industries’ carbon burden, boost economic growth, while encouraging countries to address climate change collectively.

Saudi Arabia’s grand plans to pursue green and blue hydrogen make sense. Time will tell if the Kingdom will indeed be the dominant power in hydrogen production, as the hydrogen marketplace becomes crowded and notwithstanding that industry still has a few hurdles to overcome — such as cost, transportation, storage, and safety.

But 2026 is still a few years away. And, with the Vision 2030 economic and social reform plan lighting the path, and the Saudi leadership providing unwavering support, nothing seems to be impossible.

• Fuad Al-Zayer is an independent energy consultant with expertise in energy transition, digitization, and innovation. He is the former head of OPEC’s Data Services Department and ex-global coordinator of the JODI data transparency initiative at the International Energy Forum.