Riyadh According to Rami Shabaneh, an experimenter at the King Abdullah Petroleum Studies and Research Center, Saudi Arabia is in a very competitive position in green hydrogen assiduity, particularly in terms of cost and product volume capacity.
Global prices of hydrogen range between$ 2 and$ 7 per kg. The Kingdom falls at the lower end of the cost spectrum due to low natural gas and renewable electricity prices locally.
“It’s much lower in Saudi Arabia due to the low-cost coffers and high capacity factors that electrolyzes can achieve.” “A recent study by KAPSARC shows that reaching$ 1 per kg is presumptive in the long term,” said Shabaneh.
Other countries can achieve an analogous levelized cost of hydrogen products, but only a few can produce the volumes needed to meet the decarbonization targets,” he added.
The cost of green hydrogen is largely sensitive to renewable electricity costs and electrolyzer cargo factors.
” The renewable energy prices in the Kingdom are some of the smallest in the world. “A transaction price accepted at$10.4 per MWh is a world record low right now,” he said.
KAPSARC analyzes the resource, import, and cost reduction eventualities of Saudi Arabia’s hydrogen products.
According to Shabaneh, despite significant reductions in hydrogen costs, the world still requires hydrogen support mechanisms to compensate for traditional energy in some sectors.
He also emphasized that the presence of fossil fuels in the Kingdom’s energy system does not imply an increase in emigration.
” You can still use fossil fuels to make blue hydrogen with high prisoner rates of GHG emissions,” he said.
Saudi Arabia is erecting a$ 5 billion green hydrogen design in NEOM, powered by renewable energy, to supply 650 tons of carbon-free hydrogen daily. The factory will see its first product in 2026.
The design will export hydrogen in the form of liquid ammonia to the world upon request for use as an a biofuel that feeds transportation systems.
The factory will need around 4.4 gigawatts of clean energy to power it, as ACWA Power, one of the three-dimensional possessors, plans to use solar during the day and wind at night to eliminate the need for batteries and precious storehouse results.
Numerous experts agree that green hydrogen, a carbon-friendly nontoxic gas produced using renewable energy, can play a significant part in achieving a green gas-neutral frugality by 2050,helping to combat global warming.
Saudi Arabia is developing programs and non-supervisory instruments to drive technology in hydrogen development to marketable readiness.