One of the key drivers of the development of hydrogen is the unlocking of new trade opportunities. Hydrogen can be produced at lowest cost in locations with the best renewable energy resources and low project development costs. This hydrogen can be traded with consuming countries that lack the domestic potential for sufficiently affordable hydrogen production.

At the same time, hydrogen can be an important input for specific energy-intensive processes in industry. Processes that require significant amounts of hydrogen include ammonia production, direct reduction of iron ore and methanol production. Hydrogen is also used in oil and biofuel refineries for hydrocracking, with a focus towards diesel and biodiesel production….

New renewable hydrogen production activities can become a major contributor to a country’s economy, creating jobs and potentially having a multiplier effect when the hydrogen can be used in conjunction with other resources to export higher value-added commodities (e.g., iron instead of separately iron ore and hydrogen). Many oil-exporting countries have excellent renewable energy resources, which when combined can provide very low-cost electricity together with high capacity factors.

From “Hydrogen: A Renewable Energy Perspective”