Saudi Aramco is expanding its focus on emerging sectors for renewable energy with a new Future Investment Initiative outlining a new green hydrogen and ammonia project in Saudi Arabia, Report informs referring to H2 View.
To support Aramco’s decarbonization goals, a new memorandum of understanding (MoU) has been signed with Modern Industrial Investment Holding Group and InterContinental Energy that will see the development of a green hydrogen and ammonia project in Saudi Arabia.
This is part of a new focus by Aramco to pursue investment opportunities in projects that could substantially reduce greenhouse gas emissions as it looks to achieve net zero emissions by 2050.
This could significantly support the domestic hydrogen value chain in addition to exportation opportunities.
There is a conditional gradation of hydrogen by color, depending on the method of its production and the carbon footprint released at the same time. The cleanest hydrogen is considered to be ‘green,’ obtained by electrolysis of water using energy from renewable sources. Blue hydrogen is produced from natural gas. During its production, by-product carbon dioxide is captured and stored in special storage facilities. Hydrogen is considered to be ‘grey’ if carbon dioxide is released during its production.
The first-tier greenhouse gas emissions include direct emissions of greenhouse gases from the production itself, the second-tier - from production and from electricity used in production. Tier 3 emissions include all direct and indirect emissions of a company, including emissions from consumers from the use of its products.