The Kingdom of Saudi Arabia has been highlighted as a more efficient producer of green hydrogen compared to Germany, according to the latest report by the King Abdullah Petroleum Studies and Research Center (Kapsarc).

This difference in efficiency is attributed to distinct differences in geographic and climatic conditions.

Saudi Arabia’s abundant solar radiation results in lower production costs for hydrogen derived from solar energy, in contrast to methods that rely on wind energy. These wind-based methods are common in areas with lesser sunlight, for instance, Germany.

Kapsarc’s report further indicates that for Saudi Arabia to reach a goal of 600 tonnes of green hydrogen production daily by 2030, it would require 25 percent less investment compared to Germany. This is primarily due to the cost advantage gained from solar-based production methods.

Factoring in various costs, including shipping, the report states that financing costs in Saudi Arabia are estimated to be at least 200 basis points lower than Germany.