Saudi Aramco exploring blue hydrogen potential

Saudi Aramco is exploring potential in blue hydrogen and is actively looking at exporting to important Asian markets, even as it wants to extend its portfolio by opening up assets to unlock funds.

The capture and storing of carbon dioxide from steam methane reformation, which is utilized to make blue hydrogen, is referred to as carbon capture and sequestration. CO2 is also utilized in various industrial activities, such as the oil and gas industry, where it is poured into mature oil wells to increase crude output.

As they seek to market innovative forms of energy, Gulf-based state oil exporters such as Saudi Aramco and the UAE’s Abu Dhabi National Oil Company are placing large investments on the development of blue hydrogen.

Both countries intend to sell hydrogen by leveraging existing crude oil trade agreements with consumers. Aramco transported blue hydrogen manufactured in Saudi Arabia to Japan last year. Aramco sent the hydrogen in the form of ammonia, which is more easily transportable, for use in zero-carbon power production in Japan, one of the company’s biggest crude importers.

Saudi Arabia is constructing one of the world’s largest green hydrogen projects at Neom, a future mega-city straddling Egypt and Jordan’s borders. Acwa Power and Air Products of Saudi Arabia are building the $5 billion plant, which has a 4-gigatonne capacity and can produce 650 tonnes of hydrogen per day.