-
Both targeting Japan, a key oil, gas importer
-
Both also eager to get into green hydrogen, ammonia industry
Saudi Arabia and the UAE are competing to become blue hydrogen and ammonia exporters as their oil output capacity expands, s&pglobal.com reported.
Saudi Aramco, the world’s No. 1 listed oil and gas company with a daily production of 12 million barrels, and Abu Dhabi National Oil Co (ADNOC)., with a daily production of 4 million barrels are angling to become blue hydrogen and ammonia leaders.
Aramco aims to increase its capacity by 1 million b/d in the near future and ADNOC is working on ramping up its production to 5 million b/d by 2030.
“Ultimately this is about shifting with the times and meeting market demand for lower-carbon energy,” said Ben Cahill, senior fellow, Energy Security and Climate Change Program, at the US-based Center for Strategic and International Studies. “Aramco and ADNOC have huge absolute emissions — especially Aramco — but want to reduce emissions intensity and decarbonize operations as much as they can.”
Speaking at a media briefing.on June 27, Aramco’s chief technology officer Ahmed al-Khowaiter said he hoped by 2030 there will be enough hydrogen market demand for the company to cater to it at a world scale.
In September last year Aramco exported the world’s first blue ammonia shipment — from Saudi Arabia to Japan — for use in power generation.
In January, ADNOC struck the first fuel ammonia cooperation deal with Japan’s Ministry of Economy, Trade and Industry. Tokyo intends to develop its supply chain of blue ammonia possibly in the Middle East by the late 2020s..
Ammonia — three hydrogen atoms and one nitrogen and, thus, about 18% hydrogen by weight — releases no carbon emissions when combusted in a thermal power plant.
Aramco and ADNOC are using their connections to woo investments to their hydrogen and ammonia projects.
However, the UAE has a greater ability to produce green hydrogen and ammonia, given its installed capacity of 2.54 GW, compared with Saudi Arabia’s 413 MW, based on figures from the International Renewable Energy Agency.