TOKYO – As Japanese companies look to build a supply chain to import clean energy instead of fossil fuels, Saudi Arabia is a promising partner. The oil-rich kingdom is now trying to take the lead in supplying hydrogen-based products as the world moves to low-carbon energy sources.
Instead of hydrogen itself, the Saudi state-owned oil company Aramco wants to export ammonia, a fertilizer of hydrogen and combustible nitrogen in power stations without emitting carbon dioxide. The company they can separate hydrogen from natural gas to make ammonia, trapping the carbon dioxide released in the process.
“Aramco’s processing, pipeline and refining infrastructure, and experience in carbon capture, means the company is well placed to contribute to a low-carbon, hydrogen-powered economy,” a chief executive said. company technician Ahmad Al Khowaiter with Nikkei Asia in a written interview.
The world’s largest oil company last year manufactured and transported 40 tonnes of “carbon-free” ammonia and shipped it to Japan. Participants in the world’s first demonstration project included Japanese companies Mitsubishi Corporation, a trading house, and engineering firm JGC. The project was supported by Japan’s Ministry of Economy, Trade and Industry.
The carbon dioxide formed in the processing of hydrogen is treated by the use of CCUS – carbon capture, utilization and storage. The CO2 can be taken into oil fields to stimulate production and stored underground.
Saudi Aramco captures approximately 800,000 tons of carbon dioxide annually at its Hawiyah gas plant.
Ammonia can be used to generate carbon-free energy and can be a means of transporting hydrogen freely across the ocean.
True hydrogen is difficult to store and transport, which needs to be cooled to minus 253 C to be compressed into a smelting form. Ammonia can be handled more easily and cheaply using existing infrastructure such as liquefied petroleum gas tankers. Exporters like Japan can use hydrogen isolated from ammonia to power fuel cell vehicles and for other applications.
While Europe has been focusing heavily on the production of hydrogen using renewable energy, “hydrocarbons are a reliable and affordable source of low-carbon hydrogen and ammonia,” he said. Al Khowaiter.
He said hydrogen is making a significant contribution to the company’s efforts to reduce greenhouse gas emissions. Saudi Aramco “is currently evaluating several opportunities beyond the hydrogen value chain that could … help us establish a sustainable and profitable hydrogen industry,” he said.
Al Khowaiter said that while the ammonia behavior demonstration was “one-time testers,” it showed “for the first time [that] hydrogen is portable and is becoming a commercial product. “Aramco” continues to work with partners around the world in the use of breakdown technology to produce low carbon energy, “he said.
The company’s partnership with Japan was “a natural choice,” as Japan does not have suitable locations for CCUS, Al Khowaiter said. Japan sees hydrogen as a critical part of its 2050 net zero carbon emissions target. He is experimenting with several ways of importing hydrogen from abroad. Japan lacks energy consuming a lot of Saudi oil.
Saudi Aramco Chief Technology Officer Ahmad Al Khowaiter says the oil giant is well placed to lead the hydrogen economy.
A representative from Mitsubishi Corp. said. that the company “hopes to be part of ammonia trading and logistics in the future. He said the trading house with Saudi Arabia has decades of business experience not only importing oil and gas but participating a major petrochemical project. He said Mitsubishi sees the country as a potential partner for building an ammonia supply chain.
A JGC spokesman also said the company “hopes to win projects when there are tougher plans for ammonia” to build facilities or plants.
Aramco held an initial public offering in December 2019 and raised nearly $ 30 billion – a record.
However, the company has a strong face. Many governments have unveiled net zero carbon emissions targets and are beginning to move away from fossil fuels, including oil and gas. Japanese Prime Minister Yoshihide Suga announced in October last year that Japan will cut its greenhouse gas emissions to zero by 2050.
Saudi Arabia supports hydrogen while trying to diversify its economy, which is heavily dependent on oil and gas exports. They are also working to create hydrogen using renewable energy in the city of Neom.
Aramco currently captures 800,000 tonnes of carbon dioxide annually at their Hawiyah gas plant. The CO2 is stored underground, pumping it into oil fields to increase their yield.
In addition to his project at the gas plant, Aramco is developing technology to capture carbon dioxide emitted from trucks. It also explores ways of using the collected carbon dioxide, such as injecting it into cement or converting it to urethanes.
Led by Saudi Arabia, last year’s G-20 meeting pushed for a global carbon economy, an effort to reduce emissions, reuse and recycle. While skepticism has been expressed about the effectiveness and cost of CCUS in reducing carbon emissions, it has “potential to be a cornerstone of Aramco’s effort for a global carbon economy,” Al Khowaiter said.