Saudi Arabia needs a strategy for the hydrogen sector

Significance

It intends to produce up to 11 million tonnes of ‘blue ammonia’ annually by 2030, using 'blue' hydrogen made from natural gas but with mitigated carbon impacts. The target lacks detail on implementation. At present, the only commercial-scale hydrogen project under development in Saudi Arabia is for ‘green’ hydrogen using renewables.

Impacts

• Major Asian energy importers will be invited to acquire equity in blue hydrogen projects.
• Hydrogen will be used to make green or greener steel, cement and fertilisers and decarbonise oil-refining and petrochemicals.
• The Red Sea coastal region will become an important hub for the export of green hydrogen and derivatives to Europe.