Home > Insights > 2 USD/KG Hydrogen Production Cost Threshold Could Be a Near-Term Possibility in the GCC Region with Use of Chinese Technologies

Technical Article 

2 USD/KG Hydrogen Production Cost Threshold Could Be a Near-Term Possibility in the GCC Region with Use of Chinese Technologies

In the Gulf Cooperation Council (GCC) region, green hydrogen is quickly emerging as a key player in the transition to a sustainable energy future. In our latest technical article, Penspen experts explore the growing potential of green hydrogen production, focusing on the technologies, costs, and strategies shaping its future in the region.

The article covers critical elements of the green hydrogen value chain, including solar power generation, utility-scale battery storage, electrolysers, and hydrogen storage solutions. With decreasing costs and abundant solar resources, the GCC is well positioned to achieve low-cost green hydrogen production, with projections of a Levelized Cost of Hydrogen (LCOH) as low as 2 USD/kg within the next few years.

Key topics covered:

  • Overview of the green hydrogen value chain and key technologies involved.
  • In-depth analysis of the cost drivers and projections for hydrogen production costs in the GCC.
  • The role of Chinese manufacturers in making green hydrogen more affordable.
  • Future potential for green hydrogen in meeting global energy demands.

Download the full paper to discover how the GCC is positioned to become a leading hub for green hydrogen production and the technologies driving this transformation.

Download Technical Article

Related Insights

Image of cracking in a steel pipeline
Find Out More
05-03-2025

Demystifying Hydrogen Fatigue Crack Growth

With the increasing momentum to adopt clean fuels coupled with the scrutinised investment horizons of maintaining ageing gas pipelines, there are well-established and mutually beneficial...

Learn More
Head of Engineering Hydrogen
Find Out More
26-02-2025

Energy – the final frontier?

The transition from a career developing structures for use in space to solving the challenges of implementing hydrogen infrastructure may not seem straightforward, but for Penspen’s Head of...

Learn More
Find Out More
25-02-2025

What Are the Key Integrity Considerations When Repurposing Pipelines for Hydrogen?

With the European Hydrogen Backbone targeting 52,000 km of hydrogen pipelines by 2040 - 60% of which will be repurposed from existing infrastructure - ensuring the integrity of these pipelines will...

Learn More
Find Out More
04-02-2025

2 USD/KG Hydrogen Production Cost Threshold Could Be a Near-Term Possibility in the GCC Region with Use of Chinese Technologies

In the Gulf Cooperation Council (GCC) region, green hydrogen is quickly emerging as a key player in the transition to a sustainable energy future. In our latest technical article, Penspen experts...

Learn More