Saudi Arabia Seeks to Become Top Hydrogen Exporter

[ceo_energemsier + 1,818]

Saudi Arabia Seeks to Become Top Hydrogen Exporter

 

 

(Bloomberg) -- The world’s biggest oil exporter has set its sights on also becoming the largest supplier of hydrogen, a fuel seen as pivotal for curbing climate change.

Saudi Arabia has “ambitious” plans and “will not be challenged in its record of being the biggest exporter of hydrogen on earth,” Energy Minister Prince Abdulaziz bin Salman said at a news briefing in Riyadh.

The kingdom’s large natural gas reserves enable it to produce blue hydrogen, he said, referring to a form of the fuel that’s made when gas is reformed in a process that captures the carbon dioxide byproduct. In September, the country shipped the world’s first cargo of blue hydrogen, which was converted into ammonia.

The kingdom also plans to generate hydrogen from solar power -- so-called green hydrogen -- at a $5 billion facility in Neom, a futuristic city being built on the Red Sea, starting in 2025.

By adding hydrogen to the crude oil it already produces and sells, Saudi Arabia hopes to preserve its role as an important energy supplier, including to countries shifting away from pollution-emitting fossil fuels.

Yet, hydrogen requires plenty of energy to produce, making it expensive, and is also difficult to transport. Green hydrogen costs between 3.50 euros ($4.15) and 5.00 euros per kilogram, according to the International Energy Agency. That compares with around 1.5 euros for the conventional, dirtier process that produces so-called grey or brown hydrogen. The cost of producing blue hydrogen lies in between these two.

[NickW + 2,714]

4 hours ago, ceo_energemsier said:

Saudi Arabia Seeks to Become Top Hydrogen Exporter

 

 

(Bloomberg) -- The world’s biggest oil exporter has set its sights on also becoming the largest supplier of hydrogen, a fuel seen as pivotal for curbing climate change.

Saudi Arabia has “ambitious” plans and “will not be challenged in its record of being the biggest exporter of hydrogen on earth,” Energy Minister Prince Abdulaziz bin Salman said at a news briefing in Riyadh.

The kingdom’s large natural gas reserves enable it to produce blue hydrogen, he said, referring to a form of the fuel that’s made when gas is reformed in a process that captures the carbon dioxide byproduct. In September, the country shipped the world’s first cargo of blue hydrogen, which was converted into ammonia.

The kingdom also plans to generate hydrogen from solar power -- so-called green hydrogen -- at a $5 billion facility in Neom, a futuristic city being built on the Red Sea, starting in 2025.

By adding hydrogen to the crude oil it already produces and sells, Saudi Arabia hopes to preserve its role as an important energy supplier, including to countries shifting away from pollution-emitting fossil fuels.

Yet, hydrogen requires plenty of energy to produce, making it expensive, and is also difficult to transport. Green hydrogen costs between 3.50 euros ($4.15) and 5.00 euros per kilogram, according to the International Energy Agency. That compares with around 1.5 euros for the conventional, dirtier process that produces so-called grey or brown hydrogen. The cost of producing blue hydrogen lies in between these two.

Best start building those mega solar farms then. 

In 2012 when I was there they were sticking solar panels on the car park at the Al Midra building (Dhahran). Im told they never actually got the set up to work. I assume by that it was synchronisation with the local grid. 

[John Foote + 1,135]

On 11/20/2020 at 1:47 PM, NickW said:

In 2012 when I was there they were sticking solar panels on the car park at the Al Midra building (Dhahran). Im told they never actually got the set up to work. I assume by that it was synchronisation with the local grid. 

The Al Midra panels did come on line for a time. The building housing the inverters suffered an HVAC failure, and the inverters fried. I doubt they every fixed it.

They also added panels to the shade panels for North Park 1 and 2 parking lots. Those never came on line. DIfferent contractors for the different portions of the job so everyone gets paid doing their part, and nothing works. I know this must came as a surprise to you.

https://oilprice.com/Energy/Energy-General/Saudi-Aramcos-Landmark-IPO-Is-Costing-The-Kingdom-Billions.html

The clear stupidity of the IPO, and the cost of it, is becoming obvious to everyone as well. The only reason for the theoretical high market cap is they only sold a small part, and mostly to themselves. 

[NickW + 2,714]

7 hours ago, John Foote said:

The Al Midra panels did come on line for a time. The building housing the inverters suffered an HVAC failure, and the inverters fried. I doubt they every fixed it.

They also added panels to the shade panels for North Park 1 and 2 parking lots. Those never came on line. DIfferent contractors for the different portions of the job so everyone gets paid doing their part, and nothing works. I know this must came as a surprise to you.

https://oilprice.com/Energy/Energy-General/Saudi-Aramcos-Landmark-IPO-Is-Costing-The-Kingdom-Billions.html

The clear stupidity of the IPO, and the cost of it, is becoming obvious to everyone as well. The only reason for the theoretical high market cap is they only sold a small part, and mostly to themselves. 

A mate of mine (just done 10 years -resigned last month) said there was massive pressure on staff to buy shares. He took the politically savvy line and bought the minimum quantity - views them as expensive toilet paper but will offload them in the next few weeks. 

[John Foote + 1,135]

On 11/25/2020 at 4:10 AM, NickW said:

A mate of mine (just done 10 years -resigned last month) said there was massive pressure on staff to buy shares. He took the politically savvy line and bought the minimum quantity - views them as expensive toilet paper but will offload them in the next few weeks. 

If I had been there I would have bought a minimal amount of shares. But not as an investment. It would help prevent a really bad annual review, and a nice memento to frame on the wall. 

 

[NickW + 2,714]

9 hours ago, John Foote said:

If I had been there I would have bought a minimal amount of shares. But not as an investment. It would help prevent a really bad annual review, and a nice memento to frame on the wall. 

 

Exactly. I suspect most western expats did the same for political reasons. 

I remember a Sudanese guy I worked with (unfortunately died last week). He lost about a 3rd of his severance by withdrawing it and pumping it into the KSA stock market in 2008/09 when the Saudis opened it up to Foreigners. He was warned by the westerners its a a pump and dump operation by the Saudi but he didn't listen. On no my fellow Muslim brothers wouldn't do this.......

Coincidentally I have been contacted about one of these jobs. I am not interested but wonder what they pay these days? 

Its the field compliance coordinator jobs - cant seem to link the direct post below. 

Oil and Gas Jobs by Aramco Overseas Company Uk Ltd → Work at Aramco Overseas Company Uk Ltd (oilandgasjobsearch.com)

 

Edited November 28, 2020 by NickW