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Green Hydrogen H2 News

IMF Applauds Saudi Arabia’s Drive to Lead in Green Hydrogen Production

Arnes BiogradlijaBy Arnes Biogradlija13/09/20233 Mins Read
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Saudi Arabia is rapidly emerging as a global leader in the hydrogen sector, signaling a profound commitment to clean energy and sustainability. The nation’s ambitious initiatives align with the global imperative to curb carbon emissions, advance the goals of the Paris Climate Agreement, and drive the transition toward a low-carbon future.

In this forward-looking journey, Saudi Arabia aims to convert 30 percent of its land and sea areas into natural reserves and plant an astounding 10 billion trees by 2030. These efforts underscore the nation’s resolve to combat climate change and promote biodiversity.

Crucially, the Kingdom is actively implementing the circular carbon economy model, which involves capturing and reusing carbon emissions. By 2030, Saudi Arabia pledges to reduce emissions by a substantial 278 million tons annually, a goal in harmony with the Paris Agreement’s objectives.

One of Saudi Arabia’s standout achievements is its remarkable progress in carbon capture and storage (CCS) projects. The Kingdom boasts a formidable CCS storage capacity of up to 9 million tons annually, with ambitious plans to expand this capacity to a staggering 44 million metric tons by 2035. These endeavors position Saudi Arabia as a global leader in carbon capture and storage technology.

In the realm of renewable energy, the Kingdom is accelerating its efforts. It has committed to increasing its renewable energy capacity by an impressive 2.1 GW by 2024. This includes the deployment of circular carbon economy technologies, emphasizing the use of carbon capture and storage. Saudi Arabia’s ambition is to transform itself into a pivotal global hub for clean hydrogen production, a key player in the sustainable energy landscape.

Saudi Arabia’s remarkable pace towards clean energy extends to practical achievements. In May, SABIC Agricultural Nutrients achieved a milestone by sending the first commercial shipment of low-carbon ammonia to the Indian Farmers’ Cooperative Fertilizer Company Limited (IFFCO). This ammonia production, derived from hydrogen, marks a significant step towards sustainable agriculture practices.

Furthermore, Saudi Arabia, in collaboration with Dutch authorities, signed a memorandum of understanding to leverage the Kingdom’s clean energy exports, notably green hydrogen. This highlights the Kingdom’s aspiration to be a key contributor to the global clean energy market.

NEOM, the futuristic city in Saudi Arabia, announced the construction of three stations within the world’s largest green hydrogen plant. This visionary project is set to reduce carbon dioxide emissions by a staggering three million tons annually, equivalent to the emissions of 700,000 cars.

Saudi Arabia is fostering international collaboration in its clean energy endeavors. The Saudi Public Investment Fund (PIF) inked a memorandum of understanding with the Japanese company JERA to explore green hydrogen projects and derivatives. Previously, the PIF had partnered with ENGIE for a similar purpose.

August marked a groundbreaking achievement as a Saudi researcher registered a global patent in clean hydrogen production. This innovation promises to significantly reduce production costs, positioning Saudi Arabia as the most efficient and cost-effective producer of clean hydrogen globally.

Saudi Arabia’s clean energy journey extends beyond the present. The Kingdom’s commitments for 2030 include transforming half of its electricity mix to originate from renewable energy sources. This bold vision aligns perfectly with its dedication to a sustainable, low-carbon future.

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