Saudi Arabia targets a larger share of hydrogen on its energy mix

Saudi Arabia, the world's most significant oil exporter, is piecing together a strategy to build up hydrogen production capabilities since it searches for newer, choice fuels to be part of its energy mix, in line with the country's energy minister.

"We've commissioned a staff to construct our national strategy about how we evolve with hydrogen," Prince Abdulaziz bin Salman advised a G20 press briefing.

"I guarantee you a few months from right now, you will notice an expose of what we will be doing with hydrogen and exactly what will be our national ambitions and how exactly we can still continue steadily to maintain the lead in this ambition," he added.

Hydrogen has been trialled as a promising alternative to fossil fuels, particularly found in transportation. Clean hydrogen can slash garden greenhouse gas emissions from the hydrocarbons sector by 34 %, regarding to BloombergNEF. The development of hydrogen can fuel a €120 billion (Dh 523.1bn) industry found in Europe by 2050, according to Aurora Energy Exploration. McKinsey meanwhile estimates that the advancement of a hydrogen economy could generate $140bn in gross annual earnings by 2030 and help support 700,000 careers in the US.

Saudi Arabia is going to be among several countries looking to develop hydrogen as a power source as rush for cleaner strength gains pace.

Earlier this season, a consortium comprising of commercial gases company Air Goods, Saudi Arabia-based power company Acwa Electric power and Neom, the brand new city planned in the kingdom’s north-west, decided on a $5bn project to produce hydrogen using solar and wind vitality.

Developing hydrogen may possibly also help Saudi Arabia, which makes up about 17.2 % of global reserves of crude that's second and then Venezuela, diversify its energy mix and further supplement its push in renewables.

Prince Abdulaziz's feedback echo that of Saudi Aramco's president and leader, Amin Nasser, who said the business was looking at "exciting” possibilities to collaborate in the creation and utilization of "future fuels such as for example hydrogen and other chemicals-type clean fuels”.

Aramco’s interest in different, cleaner fuels follows Abu Dhabi oil huge Adnoc’s announcement before this month that it is exploring the potential of different fuels since it moves to lessen its carbon intensity above the next decade.

“We all possess a role to take up and we as an industry can do more in climate transformation,” Dr Sultan Al Jaber, Adnoc group leader and Minister for Sector and Advanced Technology, explained at the total annual Abu Dhabi International Petroleum Exhibition and Conference on November 9.

Big oil companies have pledged to reduce their carbon footprint this year amid a change in narrative on the fossil gas industry prompted by coronavirus-induced restrictions.

Movement restrictions, which resulted in a halt found in global air and surface transport and curbed essential oil demand, also prompted oil and gas companies to re-evaluate their strategies.