Page 8 - DMEA Week 39

DMEA COMMENTARY DMEA

Saudi ships first blue ammonia

The Kingdom has made the world’s first shipment of blue ammonia as it eyes
leadership of the hydrogen industry.

SAUDI ARABIA SAUDI Arabia this week announced that it had disadvantage.”
shipped its first cargo of blue ammonia to Japan Aramco subsidiary SABIC and Mitsubishi
WHAT: in a move that sets the Kingdom’s stall for a major Corp. – represented by IEEJ – are responsible
Saudi Arabia shipped a push into hydrogen. The 40-tonne consignment for the project’s logistics in collaboration with
40-tonne cargo of blue of ammonia will be used in zero-carbon power JGC, Mitsubishi Heavy Industries Engineering,
ammonia to Japan as part generation. Mitsubishi Shipbuilding and UBE Industries.
of a study undertaken to The shipment was generated by NOC Saudi SABIC’s vice-president of energy efficiency
prove feasibility. Aramco and was made with the support of Saudi and carbon management, Dr. Fahad Al-She-
Arabian Basic Industries Corp. (SABIC) and the rehy, said the company could leverage its “exist-
WHY: Institute of Energy Economics Japan (IEEJ). ing infrastructure for hydrogen and ammonia
Riyadh has already taken Aramco said that during the process of gener- production with CO2 capture”. He added: “Our
steps to become a major ating the ammonia, it had captured 50 tonnes of experience in the full supply chain along with
player in the nascent carbon dioxide (CO2). 30 tonnes will be used in integrated petrochemicals facilities will play an
hydrogen market and methanol production at SABIC’s Ibn-Sina facil- important role in providing blue ammonia to
this project adds to the ity, with the remainder to be used in enhanced oil the world.”
momentum. recovery (EOR) at Aramco’s ‘Uthmaniyah field.
In a presentation, Aramco said that the pro- NEOM
WHAT NEXT: duction of blue ammonia had spanned the entire The announcement follows the recent signing of
The $5bn NEOM hydrogen value chain, supporting the company’s recent a $5bn deal to develop the world’s largest hydro-
project will be the world’s claims of investing in the circular economy. gen production facility at NEOM, the Kingdom’s
biggest when it comes on Natural gas was taken from ‘Uthmaniyah and $500bn smart city currently under construction
stream in 2025, utilising converted to hydrogen at a dedicated facility in on the Red Sea coast.
4 GW of solar and wind Jubail, with the CO2 captured at a nearby facility The NEOM project company is collaborating
power to create green and returned to ‘Uthmaniyah and sent to Jubail on the facility with ACWA Power and Air Prod-
hydrogen and ammonia. Methanol Plant. Nitrogen was added to the ucts, with the latter having agreed to be the sole
hydrogen at the Jubail Ammonia Plant to cre- offtaker.
ate blue ammonia, which was then dispatched The facility will come into production in 2025,
by sea to Japan, where it will be separated and achieving 4 GW of renewable energy from a com-
used to power the 50-kW Koriyama micro gas bination of solar and wind to generate 650 tonnes
turbine, the 2-MW Yokohama gas turbine and a per day (tpd) of green hydrogen through electrol-
co-firing boiler in Aioi. ysis. This will then be converted to 1.2mn tonnes
In a press release, Aramco’s chief technology per year (tpy) of green ammonia through catalysis.
officer Ahmad Al-Khowaiter: “The use of hydro- Air Products has undertaken to create the
gen is expected to grow in the global energy logistical infrastructure to hook up NEOM with
system, and this world’s first demonstration end-user facilities, which is expected to cost the
represents an exciting opportunity for Aramco company around $2bn.
to showcase the potential of hydrocarbons as
a reliable and affordable source of low-carbon Staking a claim
hydrogen and ammonia.” Already the world’s largest oil producer, these
Al-Khowaiter noted the importance of multi- developments put Saudi Arabia in a leadership
national partnerships to facilitating the ‘Circular position in the nascent hydrogen industry.
Carbon Economy’. Given the country’s reliance on revenues
Meanwhile, Toyoda Masakazu, chairman and from oil, it is highly unlikely to prioritise hydro-
CEO of IEEJ, said: “Blue ammonia is critical to gen, but it clearly sees the market as an oppor-
Japan’s zero-carbon emission ambitions to sus- tunity to diversify its economy away from such
tain the balance between the environment and dependence on crude sales, just the same way it
the economy. About 10% of power in Japan can has done with petrochemicals.
be generated by 30mn tonnes of blue ammonia.” While the generation of green hydrogen and
He added: “We can start with co-firing blue ammonia is highly capital-intensive, blue hydro-
ammonia in existing power stations, eventu- gen – that which is generated from natural gas via
ally transitioning to single firing with 100% steam reforming with the resultant CO2 captured
blue ammonia. There are nations such as Japan and stored – is 40-75% cheaper. Considering the
which cannot necessarily utilise carbon capture volumes of hydrocarbons Saudi Arabia produces,
and storage (CCS) or EOR due to their geologi- this offers Aramco yet another cost-effective
cal conditions. The carbon-neutral blue ammo- opportunity to increase revenues from existing
nia/hydrogen will help overcome this regional activities, and perhaps to reduce gas flaring. ™

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