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Green Hydrogen H2 News

Saudi Arabia could lead environmentally friendly hydrogen industry

Anela DoksoBy Anela Dokso30/09/20222 Mins Read
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Saudi Arabia is well-positioned to take the lead in the environmentally friendly hydrogen industry thanks to its abundant natural resources, modern infrastructure, and ample land.

Hydrogen prices vary widely from store to store, but typically range from from $2 to $7 per kilogram. Since renewable energy and natural gas are relatively inexpensive in the UK, living there is relatively inexpensive. The cost of green hydrogen rises due to a correlation between the cost of renewable electricity and the load factor of electrolyzers.

KAPSARC calculates how much money, time, and energy Saudi Arabia could save by producing hydrogen instead of oil. Hydrogen’s significant cost reductions have made it a viable alternative to existing fuels in some applications, but the world still needs methods to encourage its broad usage.

In order to combat climate change, the Saudi government has pledged $5 billion to a green hydrogen project in NEOM that will use renewable energy to produce 650 tons of hydrogen each day. The facility is scheduled to start cranking out products in the year 2026. The project will export liquid ammonia, a type of hydrogen, for sale as a biofuel to power transportation systems in countries throughout the world.

ACWA Power, one of the three project owners, plans to use solar during the day and wind during the night to meet the plant’s expected 4.3 GW of renewable energy needs without resorting to batteries or other expensive storage alternatives.

Saudi Arabia is developing policies and regulatory instruments to speed the development of hydrogen-related technology at the point of commercial viability.

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