Saudi Arabia A Potential Leader of Hydrogen Technologies in the Middle East

Posted on Nov 26, 2023 at 12:11 AM

Since 2016, Saudi Arabia has been exploring and devoting a lot of its efforts towards hydrogen production as part of its vision to empower clean energy usage, diversify its energy portfolio, and reduce dependence on oil.

However, hydrogen production is not a simple or one-step plan but a complicated process that produces efficient and green energy solutions and reduces carbon emissions from fossil fuel generation.

In this article, we will talk about hydrogen production in Saudi Arabia, with unique insights into all the efforts to turn it into green energy and participate in protecting our environment.

The Hydrogen Production in Saudi Arabia’s Vision 2030:

Vision 2030 was announced in April 2016 as an inclusive strategic framework highlighting the kingdom’s economic and social development plans over the next 14 years.

Although Vision 2030 has many goals on different levels, reducing the country's dependence on oil, diversifying its economy, and preparing for a post-oil future are some of the most important.

However, to be more explicit, we are going to share with you the cited attached steps regarding the hydrogen production strategy:

• Saudi Arabia launched its National Hydrogen Strategy in 2019, intending to achieve 4 million tons of hydrogen production annually and become a significant player in the global hydrogen market.
• Moreover, the strategy focuses on both blue and green hydrogen production.
• Produce hydrogen through a process called steam methane reforming (SMR).
• Vision 2030 highlights the need to expand Saudi Arabia's economy and reduce its reliance on oil and fossil fuel revenues, emphasising the importance of sustainable and renewable energy sources.
• Vision 2030 aims for Saudi Arabia to become a global supplier and leader in various energy sectors, depending on its plentiful solar resources.

Cited Usages of Produced Hydrogen:

Hydrogen can be produced for different applications across different industries, including hydrogen fuel cells in marine engineering, due to its unique properties. Still, we can say that some of the most popular usages of hydrogen include:

·   Clean Energy Production: 

Producing hydrogen is essential in clean energy production and growth strategy through fuel cells.

This carbon-free technology converts hydrogen into electricity with water vapour as the only byproduct from the electrolysis method, making it an eco-friendly alternative for powering vehicles and stationary systems.

·   Industrial Processes and Ammonia Production: 

It is known that producing hydrogen is vital for making ammonia, an essential component in fertilisers.

·   Electronic Manufacturing: 

The electronics industry relies on hydrogen as a primary source for semiconductor-generating methods, which are employed in various stages of production.

Why Is Saudi Arabia Investing in Hydrogen Production?

Saudi Arabia is investing in hydrogen production for several strategic reasons, aligning with its economic and energy objectives included in the Vision 2030 framework.

Moreover, Saudi Arabia considers its investment in hydrogen production as a strategic move to diversify its economy and not only rely on the gasification of fossil fuel existence.

And here are the main reasons why Saudi Arabia is investing more and more in clean hydrogen production:

• Reducing dependence on oil exports and providing diversity in its domestic economy to make it more robust and stable.
• Shifting to clean energy, especially with all the global efforts to reduce carbon emissions and transform to cleaner energy sources to reduce climate change.
• By investing in hydrogen, Saudi Arabia aims to become a major global clean energy player and protect its role as a significant energy exporter.
• Saudi Arabia is rich in renewable resources, particularly solar energy and wind, suitable for green hydrogen or natural gas production.
• Increase technological innovation and industrial growth, which create new industries, business hubs, and job opportunities.
  
  

Top 3 Hydrogen Producing Companies in Saudi Arabia:

Hydrogen production is becoming a more and more critical solution in the Saudi Arabian Kingdom due to the Vision 2030 framework. Moreover, international and national companies are becoming more interested in investing in hydrogen fuel production projects in Saudi Arabia.

Thus, attending green energy production courses and getting maritime engineering education and career paths training will help you get credit and a job interview with these companies.

However, these are the most vital and most prominent investors in hydrogen production within the kingdom:

1.    Neom Green Hydrogen Company (NGHC):

The NGHC is building the world’s largest plant to produce hydrogen, built on standard international criteria. From 2026, the mega-plant will produce up to 600 tons per day of carbon-free hydrogen in the form of green ammonia.

2.    Saudi Aramco:

Saudi Aramco, the national oil company of Saudi Arabia, is a critical player in the promising energy sector. It has been exploring a variety of initiatives related to hydrogen, including blue hydrogen production.

3.    ACWA Power:

ACWA Power is a leading developer, investor, and operator of purified energy resource and water purification plans.

Saudi Arabia's Multiple Achievements in Hydrogen Production Till 2023:

For 7 years now, Saudi Arabia has been investing in hydrogen production technologies based on the Vision 2030 framework, and some achievements are becoming real:

• 11 percent improvement in overall Energy Transition Index (ETI) score, including system performance, oxygen rate, and transition readiness.
• In 2020, Saudi Arabia produced and shipped the largest shipment of blue ammonia hydrogen offshore to Japan.
• Public Investment Fund (PIF) successfully auctioned 1.4 million tons of carbon credits, making it the first voluntary carbon market in the region.
• Saudi Arabia effectively created and started a program for carbon capture and storage (Carbon Circular Economy).
• Saudi Arabia is considering faster transportation to lower greenhouse emissions and achieve energy demand.

Moreover, we cannot talk about the Saudi Energy Convention 2024, where 250 exhibitors from over 20 countries across the energy ecosystem will come together to showcase the technologies and solutions that are driving progress and shaping the future of energy.

To sum up,

Saudi Arabia's hydrogen production strategy is going forward with stable steps, and the fact that a marine shipment to Japan was made speaks louder than any other achievement.

Moreover, these efforts will empower the Saudi national economy and benefit the whole globe with clean energy and lower carbon emissions.