Saudi Energy Minister Prince Abdulaziz bin Salman announced that Saudi Arabia will utilize one of the largest natural gas projects in the world to produce blue hydrogen, as the Kingdom intensifies its efforts to export a crucial fuel in the transition to green energy. Prince Abdulaziz stated, "A significant portion of the gas from the $110 billion Jafurah field will be used for blue hydrogen, which is produced by converting natural gas and capturing carbon dioxide emissions."
During a climate conference in Riyadh on Sunday, he added, "We are the largest betters on blue hydrogen in the global energy markets. We have an excellent gas base in Jafurah that we will use to produce blue hydrogen." These comments came a day after the Saudi government pledged to neutralize greenhouse gas emissions within its borders by 2060, stating it would utilize carbon capture and hydrogen to reach this target.
The Jafurah field, one of the largest in the world, is expected to contain 200 trillion cubic feet of gas, and Aramco anticipates starting production in 2024. It is noted that the hydrogen market is still in its early stages but could be worth $700 billion annually by 2050 if producers can reduce costs, according to Bloomberg's estimates.
Bloomberg reported last month that Aramco is considering opening the Jafurah field in the eastern part of the country to foreign investors. Aramco is also working with a consultant as it explores raising capital or debt to develop the expansive site.
The Kingdom also plans to sell green hydrogen, which is produced using renewable energy—typically solar and wind power—in a process that generates no carbon emissions. Prince Abdulaziz said on Sunday that Saudi Arabia could produce the cheapest green hydrogen in the world. Earlier last year, he announced that the country aims to be the largest exporter of both types of hydrogen.
