Hydrogen has huge potential in Middle East with renewables: Aramco

Hydrogen is a "huge opportunity" for the Middle East, with abundant renewable solar and wind energy providing an advantage over other parts of the world, Olivier Thorel, vice president, chemicals, at Saudi Aramco, said Dec. 7.

Saudi Arabia alone has "huge potential" for blue hydrogen from natural gas, Thorel told the Gulf Petrochemicals and Chemicals Association conference in Dubai.

The country is also building "large scale" carbon sequestration infrastructure and is focused on expanding its low carbon gas resources, Thorel said. "If you look at the energy transition, every solution is needed."

The kingdom's future city of Neom is planning to add 2.2 GW of green hydrogen, Malcolm Cook, vice president and head of sales and business development at Thyssenkrupp AG, told the conference.

Neom is part of Saudi crown prince Mohammed bin Salman's flagship Vision 2030 project, intended to diversify the economy away from oil. Thyssenkrupp is the technology provider for the project, which also involves Air Products and ACWA Power.

S&P Global Platts launched new low-carbon hydrogen assessments in the Middle East Nov. 22, as the region strives to become a major exporter of the commodity.

Aramco is expanding its gas output, while also providing feedstock to support growth in its chemicals and hydrogen sectors.

Its Jafurah shale play will yield up to 2 Bcf/d of gas, 418 MMcf/d of ethane and 630,000 boe/d of gas liquids and condensates by 2030, the company said Nov. 29.

A carbon price "north" of Eur100/mt is needed to accelerate decarbonization, Thorel said. The EU Carbon Emission Allowance was increased to Eur76.74/mt Dec. 1. "It's a huge toll on the economy to have the entire economic system have to adapt," he said.