Italy’s Engie and Saudi Arabia’s sovereign wealth fund Public Investment Fund have signed a preliminary agreement to jointly develop green hydrogen projects in the Arab world’s largest economy. Engie said the parties will also explore opportunities to accelerate the kingdom’s energy transition in line with the goals of Saudi Arabia’s Vision 2030 initiative. The transaction enables PIF and Engie to assess the viability of joint development opportunities. The energy company said the parties will also work together to develop a strategy to best access international markets and secure offtake arrangements.
Frederic Claux, managing director of flexible generation and retail for Amea at Engie, said. Our partnership with PIF will help lay a solid foundation for the green hydrogen industry, making Saudi Arabia one of the world’s largest exporters of green hydrogen. The preliminary agreement, signed by Mr Croux and Yazeed Al Humied, PIF vice-president and head of investments for the Middle East and North Africa, is in line with the country’s efforts to diversify its economy under Riyadh’s Vision 2030 transformational agenda.
OPEC’s top oil producer, Saudi Arabia, like its hydrocarbon-rich counterparts in the six-nation Gulf Cooperation Council economic bloc, is seeking to strengthen its global competitiveness in the production and supply of hydrogen and its derivatives. The UAE has taken a major step towards decarbonizing its economy, updating the UAE Energy Strategy 2050 and launching a National Hydrogen Strategy.
The UAE aims to turn the country into a leading and reliable producer and supplier of low-carbon hydrogen by 2031, Energy and Infrastructure Minister Suhail Al Mazrouei said at the launch.
The UAE plans to produce 1.4 million tons of hydrogen per year by 2031 and increase production to 15 million tons by 2050. By 2031, it will build two hydrogen oases, each producing clean electricity. Mr Al Mazrouei said the UAE will increase the number of oases to five by 2050.
In June, Oman’s Hydrom signed a $10 billion deal to develop two new green hydrogen projects with the Posco-Engie consortium and the Hyport Duqm consortium. The contracts are expected to generate a combined production capacity of 250 kilotons per annum, with more than 6.5 GW of installed renewable energy capacity at the sites. Hydrogen, which can be produced from renewable energy sources and natural gas, is expected to become a key fuel as economies and industries transition to a low-carbon world. It comes in many forms, including blue, green and gray. Blue and gray hydrogen are produced from natural gas, while green hydrogen splits water molecules through electrolysis. French investment bank Natixis estimates that hydrogen investment will exceed $300 billion by 2030.
Post time: Jul-14-2023
