The Atacama desert is well-suited to green hydrogen production
Green hydrogen imports to compete with EU production
Costs of transport could be outweighed by very low costs of renewable generation in South America, the Middle East and North Africa
Green hydrogen produced in South America, the Middle East or North Africa could be delivered to Europe at levels competitive with local production by 2030 or earlier, despite expensive shipping and cracking costs, according to an analysis of various cost comparisons. At least 50pc of the cost of producing green hydrogen comes from the cost of electricity, meaning desert areas with large amounts of sunshine, land space and wind are well-suited for production. But transporting hydrogen is much more expensive and dangerous than other fuels such as natural gas, reducing the cost-effectiveness of imports. Although all fuels encounter efficiency losses along the value chain, such losses are partic
Also in this section
4 March 2026
Turmoil in Middle East reminds nascent clean hydrogen sector that its future prospects are dependent on global energy markets and geopolitics
25 February 2026
Low-carbon hydrogen and ammonia development is advancing much more slowly and unevenly than once expected, with high costs and policy uncertainty thinning investment. Meanwhile, surging energy demand is reinforcing the role of natural gas and LNG as the backbone of the global energy system, panellists at LNG2026 said
18 February 2026
Norwegian energy company has dropped a major hydrogen project and paused its CCS expansion plans as demand fails to materialise
4 February 2026
Europe’s largest electrolyser manufacturers are losing patience with policymakers as sluggish growth in the green hydrogen sector undermines their decision to expand production capacity
