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Saudi Arabia Stresses Global Hydrogen Production Capacity

Saudi Arabia and Germany sign a memorandum of understanding for cooperation in the production of clean hydrogen. (SPA)
Saudi Arabia and Germany sign a memorandum of understanding for cooperation in the production of clean hydrogen. (SPA)
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Saudi Arabia Stresses Global Hydrogen Production Capacity

Saudi Arabia and Germany sign a memorandum of understanding for cooperation in the production of clean hydrogen. (SPA)
Saudi Arabia and Germany sign a memorandum of understanding for cooperation in the production of clean hydrogen. (SPA)

Saudi Arabia and Germany signed on Thursday a memorandum of understanding for cooperation in the production of clean hydrogen and the establishment of a joint fund to innovate related technologies, in a step aimed at reducing emissions and activating the circular carbon economy.

“We have abundant energy sources for producing green and blue hydrogen... We have the ingredients to lead the world in hydrogen production,” Saudi Energy Minister Prince Abdulaziz bin Salman said in remarks on the occasion.

The Saudi and German sides signed the MoU in the presence of the German Minister of Economic Affairs and Energy, Peter Altmaier.

Prince Abdulaziz described the step as part of the strategic efforts and great commitment to confront climate change and reduce global emissions rates.

This goal has prompted the Kingdom to adopt the concept of circular carbon economy endorsed by world leaders at the G20 summit last year, which was hosted by Saudi Arabia.

He stressed during the virtual signing ceremony that hydrogen was a main source of energy and offered great and promising opportunities for investment in the coming decades.

He pointed in this regard to the efforts of the giant NEOM project to achieve leadership in the production of green hydrogen and green fuels globally and to become the most prominent destination in the world in providing sustainable solutions that stimulate investors and attract the best minds with the aim to accelerate human development.

The MoU provides for strengthening German-Saudi cooperation in the field of clean hydrogen fuel generation, processing, use, transport and joint marketing. It also seeks to enhance the exchange of information and technical expertise between the two parties, encourage joint investments and research, and support the sale of Saudi hydrogen fuel, and the products that enter into its manufacture, such as industrial kerosene used to produce electricity in Germany.

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Aramco Plans Transition Minerals Joint Venture with Ma'aden

The proposed JV would focus on energy transition minerals, including extracting lithium from high-concentration deposits and advancing cost-effective direct lithium extraction (DLE) technologies - File Photo
The proposed JV would focus on energy transition minerals, including extracting lithium from high-concentration deposits and advancing cost-effective direct lithium extraction (DLE) technologies - File Photo
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Aramco Plans Transition Minerals Joint Venture with Ma'aden

The proposed JV would focus on energy transition minerals, including extracting lithium from high-concentration deposits and advancing cost-effective direct lithium extraction (DLE) technologies - File Photo
The proposed JV would focus on energy transition minerals, including extracting lithium from high-concentration deposits and advancing cost-effective direct lithium extraction (DLE) technologies - File Photo

Aramco, one of the world's leading integrated energy and chemicals companies, and Ma'aden, the largest multi-commodity mining and metals company in the Middle East and North Africa region, announced on Wednesday the signing of non-binding Heads of Terms, which envisages the formation of a minerals exploration and mining joint venture (JV) in Saudi Arabia.
According to a press release, the proposed JV would focus on energy transition minerals, including extracting lithium from high-concentration deposits and advancing cost-effective direct lithium extraction (DLE) technologies. Commercial lithium production is likely to commence by 2027.
This JV is expected to extend Aramco's capabilities into an adjacent sector, leveraging its technological innovation resource and data management skills. It would seek to unlock the potential of the Kingdom's high-value mineral resources, with the aim of helping meet the growing demand for lithium and other transition minerals both domestically and globally. The JV is expected to harness natural resources utilizing a wealth of subsurface data and emerging technologies to advance the Kingdom's economic diversification and energy ambitions, according to SPA.
The statements also added that there is significant potential for the extraction of energy transition minerals in the Kingdom. For example, Aramco has identified several areas with a high lithium concentration of up to 400 parts per million as part of its operations. The JV will benefit from Aramco's expertise and operations, including the use of existing infrastructure, industry-leading drilling operations, and more than 90 years of geological data in its area of operations.
Aramco Upstream President Nasir K. Al-Naimi said, "This announcement reflects Aramco's focus on positively contributing to the global energy transition. The proposed JV will enable the extraction of energy transition minerals, contributing to the growth of more sustainable energy solutions while diversifying our portfolio for a lower-carbon future. We expect that this partnership will leverage the world's leading upstream enterprise to apply significant low-cost advantages, industry experience, technological innovation, accumulated subsurface knowledge and an integrated supply chain ecosystem, with a view to meeting the Kingdom and potentially the world's projected lithium demand."
Ma'aden Senior Vice President of Exploration Darryl Clark stated, "Ma'aden has been undertaking one of the world's largest single-jurisdiction exploration programs across the Arabian Shield to unearth the estimated $2.5 trillion mineral endowment. This proposed JV would enable us to accelerate exploration of the Arabian Platform, combining Aramco's knowledge of the area with Ma'aden's mining and exploration expertise."
Lithium is a fundamental component of the energy transition, essential for production in fast-growing sectors such as electric vehicles, energy storage, and renewables. The global demand for lithium has tripled over the past five years, and its compound annual growth rate is anticipated to exceed 15% annually through 2035. The JV could help meet the Kingdom's forecasted demand for lithium, which is expected to grow twenty-fold between 2024 and 2030, supporting an estimated 500,000 electric vehicle batteries and 110 GW of renewables.
The planned JV, which is subject to customary closing conditions including regulatory approvals, was announced during the Future Minerals Forum in Riyadh.