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MEOG COMMENTARY MEOG
ammonia.” He added: “We can start with co-fir- offtaker.
ing blue ammonia in existing power stations, The facility will come into production in
eventually transitioning to single firing with 2025, achieving 4GW of renewable energy from
100% blue ammonia. There are nations such as a combination of solar and wind to generate
Japan which cannot necessarily utilize Carbon 650 tonnes per day of green hydrogen through
Capture and Storage (CCS) or EOR due to their electrolysis.
geological conditions. The carbon neutral blue This will then be converted to 1.2mn tonnes
ammonia/hydrogen will help overcome this per year of green ammonia through catalysis.
regional disadvantage.” Air Products has undertaken to create the
Aramco subsidiary SABIC and Mitsubishi logistical infrastructure to hook up NEOM with
Corp. – represented by IEEJ – are responsible for end-user facilities, which is expected to cost the
the project’s logistics in collaboration with JGC company around $2bn.
Corp., Mitsubishi Heavy Industries Engineering,
Mitsubishi Shipbuilding and UBE Industries. Staking a claim
SABIC’s vice president of energy efficiency Already the world’s largest oil producer, these
and carbon management, Dr. Fahad Al-She- developments put Saudi Arabia in a leadership
rehy, said the company could leverage its “exist- position in the nascent hydrogen industry.
ing infrastructure for hydrogen and ammonia Given the country’s reliance on revenues
production with CO2 capture”. from oil, it is highly unlikely to prioritise hydro-
He added: “Our experience in the full sup- gen, but it clearly sees the market as an oppor-
ply chain along with integrated petrochemicals tunity to diversify its economy away from such
facilities will play an important role in providing dependence on crude sales, just the same way it
blue ammonia to the world.” has done with petrochemicals.
While the generation of green hydrogen and
NEOM ammonia is highly capital intensive, blue hydro-
The announcement follows the recent signing of gen – that which is generated from natural gas
a $5bn deal to develop the world’s largest hydro- via steam reforming with the resultant CO2 cap-
gen production facility at NEOM, the Kingdom’s tured and stored – is 40-75% cheaper.
$500bn smart city currently under construction Considering the volumes of hydrocarbons
on the Red Sea coast. Saudi Arabia produces, this offers Aramco yet
The NEOM project company is collaborating another cost-effective opportunity to increase
on the facility with ACWA Power and Air Prod- revenues from existing activities, and perhaps to
ucts, with the latter having agreed to be the sole reduce gas flaring.
Week 39 30•September•2020 www. NEWSBASE .com P5
