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Saudi Arabia commits US$110 billion gas field for development of hidrogênio azul
Saudi Arabia said it would use one of the world’s largest natural gas projects to make blue hydrogen as the kingdom intensifies efforts to export a fuel seen as crucial to the green-energy transition.
A large portion of the $110 billion Jafurah development gas will be used for blue hydrogen, according to Energy Minister Abdulaziz bin Salman. It is done by converting natural gas and capturing carbon dioxide emissions.
“We are the greatest adventurers when it comes to blue hydrogen,” said Prince Abdulaziz at a climate conference in Riyadh on Sunday. “We’re putting our money where our mouth is on hydrogen. We have an amazing gas base in Jafurah, we’re going to use it to generate blue hydrogen.”
The comments came a day after the Saudi government pledged to neutralize the planet’s warming emissions within its borders by 2060, saying it would use carbon and hydrogen sequestration to achieve that goal.
The plans for Jafurah underscore how the kingdom is moving away from an earlier strategy to become an exporter of liquefied natural gas, a cleaner fuel than oil and coal, but which some governments have said they want to phase out.
huge market
A hydrogen market barely exists today, but it could be worth $700 billion a year by 2050 if producers can cut costs, according to BloombergNEF. Saudi state-owned energy company Aramco says large-scale blue hydrogen exports are likely to start after 2030.
Aramco is considering opening the Jafurah field in the east of the country to foreign investors, Bloomberg reported last month. Aramco is working with an advisor while raising equity or debt to develop the vast site, according to people familiar with the matter.
Jafurah is estimated to have 200 trillion cubic feet of gas, and Aramco expects to start production in 2024.
The kingdom also plans to sell green hydrogen, which is produced using renewable energy – usually solar and wind energy – in a process that creates no carbon emissions.
Saudi Arabia can make the cheapest green hydrogen in the world, Prince Abdulaziz said on Sunday. He announced late last year that the country wants to be the world’s biggest exporter of both types of hydrogen.
The government will increase gas supplies to the local market as well. The goal is to stop burning oil in its power plants by 2030 and for the gas to power half of the grid by then. Solar and wind will make up the rest of the energy mix.