Page 6 - AsianOil Week 25 2022

AsianOil COMMENTARY AsianOil

ADNOC, Aramco up the ante

on hydrogen fuel carriers

Gulf NOCs are staking their claims for a leading position in the

growing hydrogen market, with ADNOC and Aramco considering

various routes to market

ENERGY AS momentum continues to build around the processes will take around 12 months, following
TRANSITION expansion of the nascent hydrogen sector, the which the parties will also consider timelines for
key issue facing its growth is the functionality of the commencement of 200,000 tpy of supplies
WHAT: the supply chain – specifically how to transport from the UAE.
ADNOC has signed the element safely, cheaply and globally. While The announcement comes as the UAE seeks
up to a project that the conflict in Ukraine has had a significant to control around a quarter of the global low-car-
could develop a supply impact on short and medium-term dynamics in bon hydrogen market by 2030 and its sights are
chain with Japan using oil and gas markets, mid-century net zero tar- firmly set on Asian consumers. Japanese firms
methylcyclohexane as the gets and concerns about the sustainability of the Idemitsu, Inpex and Itochu last year received
hydrogen carrier, while use of batteries in the transportation sector will blue ammonia cargoes while Mitsui and South
Aramco is investing in the necessitate major investment. Korean firm GS Energy invested in a 1mn tpy
potential of ammonia as a Keen to maintain their position of strength blue hydrogen project in the TA’ZIZ chemicals
transportation fuel. in this new area, Middle East state oil firms have complex, part of ADNOC’s Ruwais Derivatives
been at the forefront of efforts to come up with Park.
WHY: a solution to the supply chain dilemma that will However, as in oil, the Emirati firm will face
Both companies have allow them to continue to leverage world-class stiff competition for these markets from its
strong positions in hydrocarbon reserves while remaining relevant southern neighbour, with Saudi Aramco already
traditional energy to consumer nations that are looking to address active in the same space and seeking to establish
markets and are looking long-term environmental concerns. the same “pre-eminent” position it holds in
to leverage their contacts Against this backdrop, Abu Dhabi National crude supply. To achieve this, the company has
and holds over the value Oil Co. (ADNOC) and Saudi Aramco have been been investing throughout the value chain.
chain to expand into investigating routes to market – predominantly
cleaner fuels. in Asia – through memoranda of understanding Ammonia for transport
(MoUs), studies and pilot projects. Amogy, which has received backing from Saudi
WHAT NEXT: Earlier this month, ADNOC signed up to Aramco Energy Ventures (SAEV), South Korea’s Earlier this
Aramco does not envisage a joint study with two Japanese firms for the SK Innovation, Amazon’s Climate Pledge Fund,
a clear supply chain export of hydrogen in the form of methylcy- AP Ventures and Newlab, closed a bridge fund- month, ADNOC
being established before clohexane (MCH), while a start-up part-funded ing round in which it received $46mn, taking its signed up to a
2030, but to achieve this by Saudi Aramco this week raised funding for total funding to nearly $70mn since it was estab-
major investment will be the commercialisation of ammonia-to-power lished in 2020. joint study with
needed in the intervening technology. The company labels itself “a pioneer of
period. emission-free, energy-dense ammonia power two Japanese
ADNOC ambition solutions” and after “recent successful demon-
The scope of ADNOC’s project with Japan’s Mit- strations of the first ever ammonia-powered, firms for the
sui and its biggest refiner ENEOS covers studies zero-emission farming tractor and aerial drone” export of
for the development of a 200,000 tonne per year it will use the bridge round funds “to accelerate
(tpy) blue hydrogen supply chain connecting the the commercialisation of its energy-dense power hydrogen.
two countries, leveraging MCH as a carrier. solution that will decarbonise heavy-duty trans-
While Japan has already committed to portation and enable leading cargo and fleet
acquiring and receiving hydrogen from the UAE, owners to eliminate fossil fuels and reduce emis-
the new project seeks to establish a deeper con- sions from their supply chain”.
nection. They will work to verify technical and Responding to questions via social media,
engineering elements of a 50,000 tpy hydrogen Amogy said it had “developed a compact,
production and carry out a feasibility study for high-efficiency reactor that cracks ammonia
the potential expansion of the plant to reach onboard and uses hydrogen to generate power
commercial production of 200,000 tpy. These through a fuel cell”.

P6 www. NEWSBASE .com Week 25 24•June•2022