Green hydrogen has emerged as a key pillar of future clean energy systems. Produced using renewable electricity to electrolyze water, it offers a carbon-free alternative for hard-to-abate sectors such as heavy industry, transport, and power storage. While most green hydrogen projects are concentrated in developed economies, emerging markets are gaining traction due to abundant renewable resources, policy support, and export potential.
Why green hydrogen matters in emerging markets
Abundant solar and wind resources
Many emerging markets have high solar irradiation and strong wind corridors, allowing for low-cost renewable energy — the primary input for green hydrogen. This creates a cost advantage in long-term hydrogen production economics.
Industrial decarbonization potential
Emerging economies are home to growing steel, fertilizer, and chemical sectors that are difficult to electrify but ideal for hydrogen substitution. Early adoption can support global climate goals and position these regions as clean manufacturing hubs.
Export ambitions
Countries in Africa, the Middle East, and Latin America are exploring green hydrogen exports to Europe and Asia. Proximity to demand centers and access to shipping lanes support this strategy, particularly in regions looking to diversify their economies beyond fossil fuels.
Promising regions for green hydrogen investment
North Africa
Countries: Egypt, Morocco
Advantages: Strong solar and wind resources, proximity to Europe, growing regulatory frameworks
Highlights: Egypt’s Suez Canal Economic Zone has announced multi-billion-dollar hydrogen projects targeting exports to Europe
Sub-Saharan Africa
Countries: Namibia, South Africa
Advantages: Vast land availability, strong renewables potential
Highlights: Namibia is positioning itself as a global hydrogen exporter, with government-backed initiatives and international interest in off-take agreements
Middle East
Countries: Saudi Arabia, Oman, UAE
Advantages: Strong state backing, infrastructure expertise
Highlights: NEOM in Saudi Arabia is developing one of the world’s largest green hydrogen plants, while Oman and the UAE are actively tendering hydrogen-ready projects
Latin America
Countries: Chile, Brazil, Colombia
Advantages: Exceptional solar in the Atacama Desert, hydroelectric surplus in Brazil
Highlights: Chile’s national hydrogen strategy targets 25 GW of electrolysis capacity by 2030, aiming to become a top-three exporter globally
South and Southeast Asia
Countries: India, Indonesia
Advantages: Policy-driven domestic demand, cost-sensitive energy markets
Highlights: India is launching production-linked incentives and mandates to substitute gray hydrogen with green hydrogen in refineries and fertilizer plants
Types of investment opportunities
Project developers
Companies building electrolyzer-based hydrogen production facilities are at the front line of green hydrogen development. These include regional players and international firms partnering with local governments or utilities.
Equipment suppliers
Electrolyzer manufacturers and component providers benefit from scale-up regardless of location. Some global companies are setting up manufacturing bases or JV partnerships in emerging markets to meet future demand.
Infrastructure and logistics
Hydrogen requires specialized transport, storage, and port infrastructure. Investments in pipelines, ammonia conversion facilities, and export terminals are gaining traction in emerging regions.
Utilities and integrated energy companies
Utilities expanding their renewables portfolios to include hydrogen production can offer long-term value creation. Integrated firms involved in solar, wind, and hydrogen provide diversified exposure.
Notable companies with exposure to emerging market hydrogen
ACWA Power (Saudi Arabia)
Developing the NEOM green hydrogen project in partnership with Air Products and NEOM. Positioned as a first mover in large-scale hydrogen from the Middle East.
Fusion Fuel Green (NASDAQ: HTOO)
Active in developing modular green hydrogen production systems with potential deployments in Morocco and other sun-rich areas.
Fortescue Future Industries (subsidiary of Fortescue Metals Group)
Pursuing hydrogen development in Africa and South America. Targeting green ammonia exports and heavy industry decarbonization.
Nel ASA (Oslo: NEL)
Norwegian electrolyzer company supplying emerging market projects in South America, the Middle East, and Asia. Partnerships position it for global growth.
Investment risks to consider
Political and regulatory uncertainty
Emerging markets often face shifting energy policies, permitting delays, or currency risks. Strong local partnerships and government engagement are critical for long-term success.
Technology scale-up
Many projects remain in early feasibility or pilot stages. Investors should evaluate whether the involved companies have access to proven electrolyzer technology and commercial experience.
Infrastructure gaps
Transport, storage, and port facilities may be underdeveloped or require long lead times. These bottlenecks can delay commercialization.
Export dependence
Projects geared toward hydrogen or ammonia exports depend on external markets, policy developments, and pricing dynamics in importing regions such as the EU or Japan.