Page 11 - MEOG Week 08 2021

MEOG PROJECTS & COMPANIES MEOG

Aramco expects hydrogen

market growth from 2030

SAUDI ARABIA STATE-OWNED Saudi Aramco has said that carbon dioxide (CO2). 30 tonnes will be used in
while it intends to build a world scale hydrogen methanol production at SABIC’s Ibn-Sina facil-
business, it does not anticipate significant market ity with the remainder to be used in enhanced oil
growth until the end of the decade. recovery (EOR) at Aramco’s ‘Uthmaniyah field.
The company’s chief technology officer In a presentation, Aramco said that the pro-
Ahmad al-Khowaiter said during a company duction of blue ammonia had spanned the entire
event this week: “We don't see much growth in value chain, supporting the company’s recent
[the] market until 2030, when the infrastructure claims of investing in the circular economy.
and policies will be in place.” Natural gas was taken from ‘Uthmaniyah and
However, Aramco intends to be a world converted to hydrogen at a dedicated facility in
leader in the sector, having already made strides Jubail, with the CO2 captured at a nearby facility
with a pilot project with the Japan’s Institute of and returned to ‘Uthmaniyah and sent to Jubail
Energy Economics (IEEJ) last year. Methanol Plant.
“We think Japan and South Korea will be Nitrogen was added to the hydrogen at the
where the first hydrogen trading markets will Jubail Ammonia Plant to create blue ammonia,
begin in the end of 2020s, early 2030s,” said which was then dispatched by sea to Japan where
Khowaiter, adding that Aramco continues it will be separated and used to power the 50KW
to analyse potential demand and pricing for Koriyama Micro Gas Turbine, the 2MW Yoko-
hydrogen. hama Gas Turbine and a Co-firing Boiler in Aioi.
He noted that the company would make an The announcement follows the recent sign-
announcement once it had decided on invest- ing of a $5bn deal to develop the world’s largest
ment plans. hydrogen production facility at NEOM, the
“It is a nautral progression to take on the Kingdom’s $500bn smart city currently under
responsibility for the huge demand for hydro- construction on the Red Sea coast.
gen. But we need to invest in carbon capture and The NEOM project company is collaborating
sequestration technologies,” Khowaiter said. on the facility with ACWA Power and Air Prod-
“We are looking to diversifying our portfolio to ucts, with the latter having agreed to be the sole
include zero-carbon products.” offtaker. The facility will come into production in
In September, Aramco shipped its first cargo 2025, achieving 4GW of renewable energy from
of blue ammonia to Japan to be used in zero-car- a combination of solar and wind to generate 650
bon power generation. tonnes per day of hydrogen through electrolysis.
The 40-tonne shipment was generated by This will then be converted to 1.2mn tonnes per
Aramco and was made in collaboration with year of ammonia through catalysis.
Saudi Arabian Basic Industries Corp. (SABIC) Air Products has undertaken to create the
and IEEJ. logistical infrastructure to hook up NEOM with
Aramco said that during the process of gener- end-user facilities, which is expected to cost the
ating the ammonia, it had captured 50 tonnes of company around $2bn.™

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