Saudi Aramco can develop blue hydrogen, explores market: Al-Khowaiter

Ahmad Al-Khowaiter, Chief Technology Officer, Saudi Aramco

Saudi Aramco is exploring the blue hydrogen market and has already become a leading ammonia producer after partnering with Saudi Basic Industries Corp. (SABIC), Chief Technology Officer Ahmad Al-Khowaiter told Argaam in an email interview.  

Aramco produces grey hydrogen and will continue its efforts to develop blue hydrogen, in light of its low-cost output of hydrocarbons and its huge resources base.

Hydrogen is a key source of alternative fuel. Accordingly, it attracts huge investments worldwide, as it provides an opportunity for the world to depend on a low-carbon fuel, particularly in the hard-to-decarbonize sectors.

Al-Khowaiter also commented on the carbon sequestration technology in the blue hydrogen production, noting that Aramco capitalized on its experience in its integrated carbon capture and storage (CCS) facility in Uthmaniyah.

“This took place through using this project to show the blue ammonia supply chain last year,” he added.

Expansion in the blue hydrogen technology will require more investment, technology development, global strategic partnerships and innovative market mechanisms.

Saudi Aramco can leverage on its global presence to push ahead with exploring available opportunities in this field, Al-Khowaiter explained.

As long as there is no solution to curb carbon dioxide (CO2) emissions, the world will need a mix of low-carbon energy sources to realize the objectives of climate change, he added.

Global investments in the hydrogen market exceed $260 billion, of which $80 billion were allocated to an advanced stage of planning and implementation, Al-Khowaiter affirmed, citing the Hydrogen Insights February 2021 report.

According to the International Energy Agency (IEA), global demand for hydrogen is expected to grow to 290 million tons annually by 2050, while the Hydrogen Council sees demand ramping up to 640 million tons annually by 2050.

Last June, Al-Khowaiter said that Aramco will hold a “larger share” of the blue hydrogen market, ruling out a scale-up before 2030, Argaam reported.