Saudi Arabia’s energy behemoth, Aramco, is steering its colossal resources towards the production of low-carbon hydrogen. This seismic shift in strategy is poised to propel Aramco into the vanguard of the green energy revolution, as the company aims to produce a staggering 2 million tonnes of low-carbon hydrogen by 2030, a move that could potentially transform the global hydrogen landscape.
Ashraf Al Ghazzawi, Executive Vice President of Strategy and Corporate Development at Aramco, unveiled this bold vision during his address at the prestigious ADIPEC summit in Abu Dhabi, the Middle East’s premier energy conference. “We are following the developments in hydrogen very closely and have plans to produce 2 million tonnes by 2030; that’s roughly around 100 million tonnes of blue ammonia,” Al Ghazzawi announced, signaling Aramco’s intent to diversify its energy portfolio and align with the evolving clean energy landscape.
What sets Aramco apart in this pursuit is its proactive approach to hydrogen production. Al Ghazzawi highlighted that the company has already undertaken two comprehensive tests of the entire supply chain for hydrogen production, positioning it ahead of industry peers.
Aramco’s hydrogen journey commenced in 2020 when the company joined forces with SABIC to execute a groundbreaking pilot project – dispatching the world’s inaugural shipment of low-carbon ammonia to Japan. This trailblazing achievement showcased Aramco’s resolve to venture into clean energy alternatives.
In 2022, Aramco and SABIC garnered global recognition by securing the world’s first independent accreditation for low-carbon hydrogen and ammonia products. This accreditation not only solidified Aramco’s commitment to sustainability but also attested to the high-quality standards of its low-carbon offerings.
By the close of 2022, Aramco and SABIC had achieved another milestone, delivering the world’s maiden accredited low-carbon ammonia shipment to South Korea, underlining their dedication to expanding the reach of clean energy across the globe.
While Aramco’s aspirations in the hydrogen arena are capturing attention, the company is not abandoning its position in traditional fossil fuels. Aramco’s strategic move into liquefied natural gas (LNG) was underscored by its acquisition of a minority stake in MidOcean Energy for a substantial $500 million.
MidOcean Energy, managed by EIG Global Energy Partners, is in the process of acquiring interests in four significant Australian LNG projects, signifying Aramco’s intent to maintain a diversified energy portfolio while embracing the transformative potential of hydrogen.