Saudi Arabia uses $110 billion field to produce blue hydrogen

Saudi Energy Minister Prince Abdulaziz bin Salman said that Saudi Arabia will use one of the world’s largest natural gas projects to produce blue hydrogen, as the kingdom ramps up efforts to export a crucial fuel in the transition to green energy.

“A large part of the gas from the $110 billion Jafurah field will be used for blue hydrogen, as it is manufactured by converting natural gas and capturing carbon dioxide emissions,” Prince Abdulaziz said.

He added during the climate conference in Riyadh today, Sunday, “We are the biggest bets on blue hydrogen in the global energy markets. We have a wonderful gas base in Jafurah that we will use to generate blue hydrogen.”

The comments came a day after the Saudi government pledged to neutralize greenhouse emissions within its borders by 2060, saying it would use carbon and hydrogen sequestration to reach that goal.

The Jafurah field, one of the largest in the world, is expected to contain 200 trillion cubic feet of gas, and Aramco expects production to start in 2024.

It is noteworthy that the hydrogen market is still in its infancy at present, but could reach $ 700 billion annually by 2050 if producers can reduce costs, according to Bloomberg calculations.

And Bloomberg reported last month that Aramco is considering opening the Jafurah field in the east of the country to foreign investors. Aramco is also working with an advisor as it considers raising capital or debt to develop the vast site.

The kingdom also plans to sell green hydrogen, which is produced using renewable energy – usually solar and wind energy – in a process that does not generate carbon emissions.

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On Sunday, Prince Abdulaziz said Saudi Arabia could make the world’s cheapest green hydrogen. Late last year, he announced that the country wanted to be the world’s largest exporter of both types of hydrogen.

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