What is more, the kingdom could position itself as a facilitator of a global energy transition by proactively marketing its clean hydrogen supply to hydrocarbon-importing countries that desire to procure lower-carbon energy sources. The domestic consumption of clean hydrogen, such as in transportation, would help reduce the carbon profile of the Saudi economic activities. The development of a clean hydrogen industry, particularly the use of blue hydrogen, would also echo the kingdom’s growing pursuit of a circular carbon economy, which is a framework for managing and reducing emissions through carbon reduction, reuse, recycle, and removal. This raises a question over the timeline in which the Saudi hydrogen vision may materialize with renewables-based supplies. As of the first half of 2020, utility-scale photovoltaic capacity stood at 330 megawatts (MW). The kingdom’s installed renewables capacity remains limited today, however.
Cf h2 recovery install#
The kingdom has announced plans to install about 27 gigawatts (GW) of mostly solar capacity by 2023 and almost 58 GW by 2030. In addition, hydrogen from renewable energy sources (“green hydrogen”) could mean a new industrial sector for Saudi Arabia, much of whose landmass is located in the sun belt and has vast areas of flat land for solar panels. Its expertise and capacities can help underpin the Saudi vision for commercially viable production and export of hydrogen, which is based on hydrocarbon resources with the carbon capture, utilization, and storage (CCUS) of emissions (“blue hydrogen”). Moreover, hydrogen production speaks to the kingdom’s existing expertise and supply chain capacities, such as its experience in industrial-scale production of hydrogen and chemicals, as well as the capture and storage of CO 2. This may be of particular value to the kingdom in the carbon-constrained world that is characterized by a wave of net-zero targets from governments and industries around the world. Hydrogen production would allow Saudi Arabia to become less reliant on domestic oil as the key source of income from global markets. Indeed, Saudi Arabia wants to become the top supplier of hydrogen in the world. Hydrogen can help the world’s top crude oil–exporting country meet several key mandates of the Saudi Vision 2030: diversify its exports, leverage existing sectors’ supply chains to increase local contents, and develop new industrial sectors.
Saudi Arabia’s interest in hydrogen is primarily driven by its desire to ensure economic security. While hydrogen likely speaks to Saudi Arabia’s strength as an energy supplier, the development of a fuel cell vehicle market and, more importantly, fuel cell vehicle manufacturing capacity at home could help the country to meet some of the major Saudi Vision 2030 mandates, such as the development of new industrial sectors and diversification of its exports.Solar and wind resource wealth could turn Saudi Arabia into a major supplier of renewables-based hydrogen in the long run if the kingdom accelerates building out renewables capacity.The kingdom’s vast hydrocarbon resources, existing industrial capacities, and business expertise make it an attractive supplier candidate to those energy import–dependent economies that have begun to explore hydrogen imports.Saudi Arabia seeks to become a global supplier of hydrogen, primarily using hydrocarbons combined with the capture and storage of carbon emissions, as a key means to diversify its export profile away from crude oil in an increasingly carbon-constrained world.The project examines countries’ big bets on emerging energy technologies and how these will rewire the world’s energy map. This commentary is part of Energy Rewired, a project from the CSIS Energy Security and Climate Change Program studying the industrial strategies of major economies for the energy transition. Saudi Arabia’s Hydrogen Industrial Strategy Responding to Egregious Human Rights Abuses.
Building Sustainable and Inclusive Democracy.Family Planning, Maternal and Child Health, and Immunizations.Energy, Climate Change, and Environmental Impacts.Weapons of Mass Destruction Proliferation.Defense Industry, Acquisition, and Innovation.Intelligence, Surveillance, and Privacy.
0 kommentar(er)
