Saudi Arabia Aims Next to Be Largest Hydrogen Exporter

Nov 23, 2020 12:47 PM ET
  • The globe's largest oil exporter has actually established its sights on likewise becoming the biggest vendor of hydrogen, a fuel seen as crucial for suppressing climate change.

Saudi Arabia has "ambitious" plans and also "will certainly not be tested in its record of being the most significant merchant of hydrogen in the world," Energy Minister Prince Abdulaziz container Salman claimed at an information rundown in Riyadh.

The kingdom's big gas books enable it to create blue hydrogen, he claimed, referring to a form of the gas that's made when gas is changed and also the carbon dioxide result is recorded. In September, the nation shipped the globe's initial cargo of blue hydrogen, which was exchanged ammonia, to Japan.

The kingdom likewise plans to generate hydrogen from solar energy-- so-called environment-friendly hydrogen-- at a $5 billion facility in Neom, a futuristic city being built on the Red Sea, beginning in 2025.

By adding hydrogen to its mix, Saudi Arabia wishes to maintain its duty as a crucial power distributor as more nations change far from pollution-emitting nonrenewable fuel sources.

Yet, hydrogen is tough to move and calls for lots of energy to create, making it costly. Environment-friendly hydrogen prices in between 3.50 euros ($4.15) as well as 5.00 euros per kg, according to the International Energy Agency. That compares with about 1.5 euros for the standard, dirtier procedure that creates so-called grey or brownish hydrogen. The expense of creating blue hydrogen hinges on between these two levels.