RIYADH: Saudi Arabia is turning to Germany to explore opportunities in hydrogen as the Kingdom is vying to be one of the largest players in the fuel of the future.
The Saudi Cabinet last night approved a memorandum of understanding between the Ministry of Energy and Germany’s Federal Ministry of Economic Affairs and Energy to explore opportunities in the hydrogen field, state news agency SPA said on Tuesday.
This agreement comes at a time when state-owned energy giant Saudi Aramco is planning to expand in production of blue hydrogen, while the futuristic project of NEOM is working on producing its first green hydrogen in 2025.
Although the agreement was signed yesterday, Germans were heavily involved and active over the past two years with Saudi counterparts on hydrogen discussions. NEOM has already a team of Germans leading its hydrogen unit, with Peter Terium, a Dutch energy executive and former Chief Executive Officer of innogy and RWE, as head of its energy sector.
Saudi Aramco said on Monday that it is looking for off-take agreements for blue hydrogen in its key markets to expand its output and sees strong potential for growth. Aramco is talking to potential buyers in Japan and South Korea, which it says will be major markets for the fuel, CEO Amin Nasser said on an investor call.
Blue hydrogen uses the traditional Haber-Bosch method of turning natural gas into hydrogen but captures the carbon emissions, while green hydrogen is created with renewable energy and water.
Hydrogen is converted into ammonia for long-distance transportation.
In September last year, Saudi Aramco and Japan’s Institute of Energy Economics (IEEJ) announced the first shipment of blue ammonia from Saudi Arabia to Japan.
The shipment, which was in partnership with Saudi Basic Industries Corporation (SABIC), contained forty tons of high-grade blue ammonia, and is meant for use in zero-carbon power generation.
Nasser also said on Monday Saudi Aramco is in talks about renewable investments with the nation’s wealth fund PIF and Acwa Power.
Saudi Arabia explores hydrogen opportunities with Germany amid push for global market share
https://arab.news/juqj3
Saudi Arabia explores hydrogen opportunities with Germany amid push for global market share
- Saudi Ministry of Energy to work with Germany's Federal Ministry of Economic Affairs and Energy
- Saudi Aramco said on Monday that it is looking for off-take agreements for blue hydrogen in its key markets
Related
India seals $3bn LNG agreement with UAE
- Leaders hold talks to strengthen trade, defense ties
NEW DELHI, DUBAI: India signed a $3 billion deal on Monday to buy liquefied natural gas from the UAE, making it the Gulf country’s top customer, as the leaders of both countries held talks to strengthen trade and defense ties.
The agreement was signed during a very brief two-hour visit to India by UAE President Sheikh Mohammed bin Zayed Al-Nahyan for talks with Indian Prime Minister Narendra Modi.
They pledged to double bilateral trade to $200 billion in six years and form a strategic defense partnership.
Abu Dhabi state firm ADNOC Gas will supply 0.5 million tonnes of LNG a year to India’s Hindustan Petroleum Corp. for 10 years, the companies said.
ADNOC Gas said the agreement brings the total value of its contracts with India to over $20 billion.
“India is now the UAE’s largest customer and a very important part of ADNOC Gas’ LNG strategy,” the company said.
The UAE is India’s third largest trading partner and Sheikh Mohammed was accompanied by a government delegation that included his defense and foreign ministers. The two sides signed a letter of intent to work toward forming a strategic defense partnership, India’s Foreign Secretary Vikram Misri told reporters.
Misri, however, said that the signing of the letter of intent with the UAE does not mean that India will get involved in regional conflicts.
“Our involvement on the defense and security front with a country from the region does not necessarily lead to the conclusion that we will get involved in particular ways in the conflicts of the region,” he said.
