Saudi Arabia in prime position for green, blue hydrogen production: KAPSARC study

Saudi Arabia in prime position for green, blue hydrogen production: KAPSARC study

RIYADH: Saudi Arabia’s vast renewable energy potential and natural gas reserves will support it in producing some of the cheapest green and blue hydrogen globally, a new study has said. The findings were released this week in the “Economics and Resource Potential of Hydrogen Production in Saudi Arabia,” which was commissioned by the King Abdullah Petroleum Studies and Research Center (KAPSARC). At current domestic gas prices and considering the average auction price of the renewable energy projects awarded in 2020, the cost of producing blue and green hydrogen is estimated to be at $1.34/kg and $2.16/kg, respectively. Additionally, the delivered cost of hydrogen by 2030 from Saudi Arabia’s western region to the Port of Rotterdam, via the Suez Canal, will average between $3.50/kg and $4.50/kg depending on the hydrogen carrier used. For context, the expected cost of green hydrogen production in Europe in 2030 is estimated to average between $3/kg and $5/kg. The study also highlighted the Kingdom’s geographical resource distribution, pointing out that the eastern region is more likely to produce and export blue hydrogen, while green hydrogen production is ideally suited in the western region — far from the local oil and gas clusters. “As countries commit to