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Saudi Arabia to use $110 billion natural gas project for blue hydrogen

Moneycontrol logo Moneycontrol 24-10-2021 Saurav Mukherjee
Saudi Arabia to use $110 billion natural gas project for blue hydrogen © Parth Charan Saudi Arabia to use $110 billion natural gas project for blue hydrogen

In a bid to transit into green-energy nation, Saudi Arabia on October 24 announced their key focus on world’s biggest natural-gas projects would manufacture blue hydrogen.

Saudi Arabia's Energy Minister Abdulaziz bin Salman said that a major portion of gas from the $110 billion Jafurah development will be used for blue hydrogen, reported Bloomberg. The blue hydrogen is made by converting natural gas and capturing the carbon dioxide emissions.

ALSO READ: Top oil exporter Saudi Arabia targets net zero emissions by 2060

"We are the biggest adventurers when it comes to blue hydrogen. We’re putting our money where our mouth is on hydrogen. We have a terrific gas base in Jafurah we will use it to generate blue hydrogen," the business daily quoted Prince Abdulaziz said while he was speaking at a climate conference in Riyadh.

The new move by the global oil supplier shows how it is planning to tranform itself from previous plans to become an exporter of liquefied natural gas (LNG). The fuel is cleaner than oil and coal.

According to BloombergNEF, a market for hydrogen could be worth $700 billion annually by 2050, following the producers bring down the cost. Earlier reports arrived that Saudi state energy company Aramco is mulling to open up the Jafurah field in the east of the country to foreign investors. The firm is also working with advisors on raising equity or debt for the vast site.

Estimated data says Jafurah may hold 200 trillion cubic feet of gas and the Saudi Arabian firm is likely to begin production in 2024.

Meanwhile, on October 23, Saudi Arabia’s Crown Prince Mohammed bin Salman said the world’s top oil exporter aims to reach zero-net emissions by 2060.

"The Kingdom of Saudi Arabia aims to reach zero-net emissions by 2060 under its circular carbon economy programme … while maintaining the kingdom’s leading role in strengthening security and stability of global oil markets," Prince Mohammed said in recorded remarks.

The Crown Prince noted that the kingdom would join a global initiative on slashing emissions of methane by 30 percent from 2020 levels by 2030.

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