Saudi Arabia is witnessing remarkable activity in the hydrogen sector, which is considered the fuel of the future, in terms of production and export.
The country is investing in its great energy potential, to export clean energy to the world, and to contribute to achieving the global goals to reduce carbon emissions and reach carbon neutrality, in line with the Paris Climate Agreement.
While the Kingdom is working to enhance its hydrogen production, it has successfully accelerated its efforts in the field of climate action, as it seeks to convert 30 percent of its land and sea areas into natural reserves, and plant about 10 billion trees by 2030.
It is also working on implementing the circular carbon economy model, with the aim of fulfilling its pledges to reduce emissions by 278 million tons annually by 2030, and raising the share of renewable energy sources in the electricity mix to 50 percent.
With this initiative, Saudi Arabia has become a world leader in carbon capture and storage projects, with a storage capacity of up to 9 million tons annually, while it aims to store 44 million metric tons by 2035.
Earlier this month, International Monetary Fund experts welcomed the ongoing plans in the Kingdom to increase renewable energy capacity by an additional 2.1 GW by 2024, and deploy circular carbon economy technologies (including the use of carbon capture and storage), as well as transforming the country into a global hub for clean hydrogen production.
Experts also welcomed the road map drawn up by the Saudi authorities to reach net-zero emissions, as their analysis highlighted the government’s ability to achieve its targets with the least amount of GDP losses.
Fast pace towards clean energy
At the beginning of May, SABIC Agricultural Nutrients announced that it had sent the first commercial shipment of low-carbon ammonia to the Indian Farmers’ Cooperative Fertilizer Company Limited (IFFCO). Ammonia is produced from hydrogen.
Through this shipment of 5,000 metric tons, SABIC Agricultural Nutrients became the first company to introduce low-carbon ammonia to the Indian fertilizer sector.
In 2022, SABIC Agricultural Nutrients and Saudi Aramco obtained the world’s first independent certification for low-carbon ammonia production and clean hydrogen production from TUV Rheinland, a leading independent agency in systems testing, inspection and certification services, based in Germany.
On May 11, Prince Abdulaziz bin Salman, Saudi Minister of Energy, and Micky Adriaansens, Dutch Minister of Economic Affairs and Climate Policy, signed a memorandum of understanding to benefit from the clean energy exported by the Kingdom, especially green hydrogen.
On June 11, NEOM announced the construction of 3 stations within the largest green hydrogen plant in the world. The green hydrogen project in the city of NEOM would reduce carbon dioxide emissions at a rate of three million tons annually, which is equivalent to the pollutants produced by 700,000 cars.
On July 20, the Saudi Public Investment Fund signed a non-binding memorandum of understanding with the Japanese company JERA, to drive cooperation between the two parties and explore opportunities for the development of green hydrogen projects and derivatives.
The PIF had previously signed an MoU with ENGIE to develop green hydrogen projects and derivatives in the Kingdom.
On August 31, a Saudi researcher registered a global patent in the clean hydrogen production sector, which contributes to reducing the cost of production by a large percentage, making production in Saudi Arabia the most efficient and least expensive in the world.
The patent was registered to Dr. Engineer Abdel-Rahman Abdelal, who works as Executive General Manager of Business Development and Head of Green Hydrogen Project Development at Saudi ACWA Power, and an expert in open innovation at the United States Patent and Trademark Office (USTPO).
During the past year, the Kingdom succeeded in accelerating its efforts in the field of climate action, as it seeks to achieve ambitious goals by 2030, which include converting 30 percent of its land and sea areas into natural reserves, and planting more than 600 million trees.
The Kingdom has adopted the circular carbon economy model with the aim of achieving its pledges to reduce emissions by 278 million tons annually, and to raise the share of renewable energy sources in the electricity mix to 50 percent by 2030.
