The global race for green hydrogen and clean technologies is accelerating, and the question is no longer if supply chains will reorganise, but where they will land. The Southern Mediterranean is emerging as a natural partner for Europe: rich in renewable resources, close to EU markets, and home to an industrial base that can be upgraded to serve tomorrow’s clean-tech value chains.

The MED-GEM Network’s new report, “Nearshoring Clean Tech: Regional Manufacturing Readiness for Renewable Energy & Green Hydrogen in Four Pilot Countries”, provides the first regional Local Value Creation (LVC) analysis of this opportunity. It examines how existing industries in four Southern Mediterranean partner countries can support the manufacturing of key components for renewable energy and green hydrogen, and what it would take to turn this potential into bankable projects and stable jobs.

What the report shows

The analysis confirms a strong industrial base to build on. Across the region, there are already significant capabilities in metalworking and fabrication, components for energy and mobility, and engineering, digital and monitoring systems. These assets can be mobilised to produce electrolyser parts, hydrogen storage tanks and vessels, pipelines, fuel cell components and associated balance-of-plant equipment closer to where renewable resources are located.

Local manufacturing is framed not just as an economic opportunity, but as a strategic imperative. Developing a regional clean-tech supply chain can reduce dependence on imported equipment, improve energy security, and create high-skilled employment in engineering, assembly, maintenance and R&D. In a context where global competition is intensifying and cost pressures are high, nearshoring to the Southern Mediterranean can help both the region and the EU remain competitive.

A roadmap from mapping to market

Beyond diagnostics, the report proposes a phased roadmap: moving from capability mapping and pilot projects to industrial scaling, market creation and, ultimately, harmonisation of standards and integration into global value chains. It emphasises the value of a regional approach, where complementary strengths – industrial capacity, innovation ecosystems, deployment experience and cost-competitive fabrication – reinforce each other through coordinated supply-chain development.

Stakeholder consultations with government, industry and academia underline both the appetite and the constraints: the need for specialised skills, better access to finance, upgraded infrastructure, and clearer policy signals for local content and supplier development. The recommendations translate these insights into concrete actions for policymakers, development partners and private investors.

Aligned with T-MED and the EU’s industrial agenda

The report is directly aligned with the EU’s evolving policy architecture: REPowerEU, the Pact for the Mediterranean, the Trans-Mediterranean Energy and Clean Tech Cooperation Initiative (T-MED), the Net-Zero Industry Act (NZIA) and Global Gateway. It shows how these instruments can support a mutually beneficial nearshoring dynamic, turning political intent into concrete investments, regulatory convergence and shared industrial value creation.

Ultimately, the analysis argues that by harnessing their combined strengths and implementing the recommended roadmap, Southern Mediterranean partners and the EU can build a robust, Euro-Mediterranean clean-tech value chain – positioning the region as a Mediterranean Green Hydrogen Powerhouse and a reliable partner in the global clean-energy transition.

🔗 Download the full report:
Nearshoring Clean Tech: Regional Manufacturing Readiness for Renewable Energy & Green Hydrogen in Four Pilot Countries
👉 https://drive.med-gem.eu/drive/s/loGVrVHE4JUvuuLigcl9DcFhROA2e9