Saudi Arabia and Germany have entered into a partnership to cooperate closely in energy from “green hydrogen”. The green hydrogen is seen as the “fuel of the future” to reduce greenhouse gas emissions and to fight climate change.
The agreement for green hydrogen will promote cooperation between Saudi Arabia and Germany regarding the generation, processing, use and transportation of clean hydrogen for the benefit of both countries.
Arab News reported that Saudi Arabia is building a $5-billion green fuel plant for export in a bid to become the world’s largest supplier of hydrogen. Green hydrogen is produced by using renewable energy instead of fossil fuels, and producing a kilogram of the gas currently costs about $5. Saudi Arabia could drive this cost down to $1.5 per kilogram by 2030.
The hydrogen plant will be located in the planned megacity of NEOM, near Tabuk city close to the Red Sea. Green hydrogen will be powered entirely by sun and wind.
The move comes as global demand for clean fuel surges, with superpowers such as China, Japan, and Europe setting sights on the growing hydrogen business of $700 billion by 2025.
Many countries have expressed a desire to use the hydrogen gas more, including the UK, China, Japan, and the US, highlighting the potential of this industry.
The Energy experts described Saudi Arabia as the one to watch in the global race for “Blue ammonia” and “Green hydrogen” scene due to Kingdom’s geographical characteristics – “oil, gas, sunshine and wind, and vast tracts of unused lands.”
