Investigating strategic directions and initiatives of green hydrogen, the role of alignment between government and business collaboration: A case of green hydrogen in Saudi Arabia

Abstract

This research investigates the strategic alignment process that can support the development of Green Hydrogen (GH2) initiatives with a case study in Saudi Arabia. Despite growing global interest in GH2 as a pillar of sustainable energy transitions, this research finds that structured national strategies for GH2 remain fragmented and underdeveloped. This fragmentation limits the potential for coherent deployment and long-term value creation in energy projects. In response, the study proposes a Strategic Alignment Framework to guide the coherent deployment of GH2, aligned with the objectives and needs of stakeholders. The literature review identifies a lack of integrated models to support GH2 ecosystem planning, prompting the development of a multi-phase framework comprising Initiation and Planning, Strategic Development, and Implementation. The proposed framework in Figure 4:7 distinguishes between internal and external environmental dynamics and incorporates key strategic levers such as policy design, infrastructure readiness, human capital development, and industrial localisation. Empirical data were gathered through qualitative expert interviews with senior stakeholders across government, semi-government, and private sectors in Saudi Arabia, and validated through two focus groups consisting of three participants each. Thematic analysis highlights critical enablers, including regulatory clarity, innovation ecosystems, and government-business collaboration, as well as barriers such as investment uncertainty. Key findings emphasise that strategic alignment between national policy, industrial readiness, and infrastructure planning is essential for the GH2 sector’s success. The validated Green Hydrogen Strategic Alignment Framework in Figure 4:7 enables stakeholders to anticipate coordination bottlenecks, assess implementation readiness, and mitigate socio-environmental risks. This research contributes developing a Strategic Alignment Framework for GH2, linking external drivers with internal execution, and serving as a diagnostic tool for policy, investment, and stakeholder engagement. The findings emphasise incentives, regulatory clarity, innovation, and collaboration as key enablers of a competitive GH2 industry. Although grounded in the Saudi case, the study offers insights applicable to other resource-rich countries pursuing energy transition.