Saudi Arabia Considers Establishing Facility to Produce Clean Fuel Derivatives

Dr. Zeid Al-Ghareeb, the Director General of the National Program for Hydrogen and the Circular Carbon Economy at the Saudi Ministry of Energy, speaks during the Middle East and North Africa Climate Week (MENACW) 2023 in Riyadh. (Asharq Al-Awsat)
Dr. Zeid Al-Ghareeb, the Director General of the National Program for Hydrogen and the Circular Carbon Economy at the Saudi Ministry of Energy, speaks during the Middle East and North Africa Climate Week (MENACW) 2023 in Riyadh. (Asharq Al-Awsat)
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Saudi Arabia Considers Establishing Facility to Produce Clean Fuel Derivatives

Dr. Zeid Al-Ghareeb, the Director General of the National Program for Hydrogen and the Circular Carbon Economy at the Saudi Ministry of Energy, speaks during the Middle East and North Africa Climate Week (MENACW) 2023 in Riyadh. (Asharq Al-Awsat)
Dr. Zeid Al-Ghareeb, the Director General of the National Program for Hydrogen and the Circular Carbon Economy at the Saudi Ministry of Energy, speaks during the Middle East and North Africa Climate Week (MENACW) 2023 in Riyadh. (Asharq Al-Awsat)

Saudi Arabia is currently considering establishing a complex to produce clean fuel derivatives from carbon dioxide and hydrogen gas, within its endeavor to reach net zero emissions in 2060.

Dr. Zeid Al-Ghareeb, the Director General of the National Program for Hydrogen and the Circular Carbon Economy at the Saudi Ministry of Energy, told Asharq Al-Awsat about his country’s intention to launch the project, as it possesses many underground reservoirs that are used to transport and capture carbon dioxide.

Green Hydrogen

In remarks on the sidelines of the Middle East and North Africa Climate Week (MENACW) 2023 in Riyadh, Al-Ghareeb described NEOM as one of the largest green hydrogen projects in the world and the first of its kind, noting that the project will open new horizons for the industry, and will produce approximately 250,000 tons of green hydrogen by 2026.

He added that the NEOM green hydrogen project, which is currently developed by NEOM, Air Products, and ACWA Power, aims to adopt the latest innovative methods to provide combined energy capacity that is equivalent to about four Gigawatts of renewable energy from solar, wind and storage.

Carbon management

The Saudi official emphasized that Riyadh aspires to shift from being the first exporter of oil to become one of the leading countries that produce renewable energy, including hydrogen, with the aim to reach zero neutrality in 2060.

In this context, the program director highlighted the most important initiatives taken by Riyadh, namely the establishment of an economic corridor linking India to the Middle East and Europe, which will enable the Kingdom to export hydrogen and clean electric energy to customers in Europe at the lowest costs.

Abundant Sources

Saudi Arabia is one of the few countries that enjoy the natural resources to produce clean hydrogen, Al-Ghareeb said, stressing that the country possesses ground reservoirs to store carbon dioxide in the process of producing blue hydrogen, in addition to natural resources from solar and wind energy, which will allow production at a much lower cost than other countries and with higher reliability.

He also revealed that the capacity of one of the largest carbon dioxide transport and storage complexes announced by Riyadh in the Saudi Green Initiative will double to reach 44 million tons by 2035.



UN Trade Agency: New Trade War Deadline Prolongs Instability

Workers inspect imported stones at a marble factory in Kishangarh, in India's Rajasthan state on July 8, 2025. (Photo by HIMANSHU SHARMA / AFP)
Workers inspect imported stones at a marble factory in Kishangarh, in India's Rajasthan state on July 8, 2025. (Photo by HIMANSHU SHARMA / AFP)
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UN Trade Agency: New Trade War Deadline Prolongs Instability

Workers inspect imported stones at a marble factory in Kishangarh, in India's Rajasthan state on July 8, 2025. (Photo by HIMANSHU SHARMA / AFP)
Workers inspect imported stones at a marble factory in Kishangarh, in India's Rajasthan state on July 8, 2025. (Photo by HIMANSHU SHARMA / AFP)

The Trump administration's decision to extend a negotiating deadline for tariff rates is prolonging uncertainty and instability for countries, the executive director of the United Nations trade agency said on Tuesday.

US President Donald Trump on Monday ramped up his trade war, telling 14 nations, from powerhouse suppliers such as Japan and South Korea to minor trade players, that they now face sharply higher tariffs from a new deadline of August 1.

"This move actually extends the period of uncertainty, undermining long-term investment and business contracts, and creating further uncertainty and instability," Pamela Coke-Hamilton, executive director of the International Trade Centre, told reporters in Geneva, according to Reuters.

"If a business is not clear on what costs they are going to pay, they cannot plan, they cannot decide on who will invest," Coke-Hamilton said, citing the example of Lesotho, where major textile exporting companies have withheld their investment for the time being, pending a tariff outcome.

The uncertainty, combined with deep cuts in development aid, had created a "dual shock" for developing countries, she added.

Countries have been under pressure to conclude deals with the US after Trump unleashed a global trade war in April that roiled financial markets and sent policymakers scrambling to protect their economies.