MENA Green Hydrogen Links Chinese Technology With Europe but Lacks Firm Buyers

The Middle East and North Africa is using strong solar and wind resources and proximity to Europe to develop green hydrogen, while Chinese equipment and engineering support early construction across a cross-regional supply model.

Hydrogen can serve steel, transport and ammonia, but current production remains dominated by fossil fuels. The source cites IEA data showing that less than one percent is low-emissions, so project labels and actual production methods must remain separate.

MENA projects may access low-cost renewable power and shorter routes to Europe, but hydrogen conversion and transport can lose 40 to 70 percent of energy. Limited domestic demand and reliance on exports make firm long-term buyers central to financing.

Several gigawatt-scale projects target green-hydrogen costs below USD 3 per kilogram. Chinese firms are involved in hydrogen or green-ammonia projects in Saudi Arabia, Morocco and Oman, while Europe expects imports to meet future demand.

DNV data cited by the source shows that only about one-third of more than 1,500 announced hydrogen projects worldwide have reached final investment decision, with weak offtake the most common reason. Cost, capacity and demand estimates are not delivered outcomes.

The model could position MENA as producer and exporter, China as technology and engineering provider, and Europe as buyer. Policy changes, certification, transport losses and price gaps will still determine financeability.

SNN editorial analysis: Taiwan companies supplying or buying hydrogen equipment and materials should retain electricity origin, electrolyser efficiency, water use, carbon intensity, certification boundaries, offtake contracts and transport losses. Announced capacity and final investment decision are different evidence states.

Next checks should follow signed offtake agreements, capacity reaching final investment decision, EU rules, delivered cost, lifecycle emissions and equipment delivery by Chinese companies.