• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 2 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 1 day "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 4 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days Demonising fossil fuels has caused major grid problem in Australia
  • 5 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 6 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 331 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 9 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
Haley Zaremba

Haley Zaremba

Haley Zaremba is a writer and journalist based in Mexico City. She has extensive experience writing and editing environmental features, travel pieces, local news in the…

More Info

Premium Content

Saudi Aramco Sees A Major Market Forming For Hydrogen

There’s a lot of buzz going around about green hydrogen. It’s virtually emissions-free, it burns hot enough to replace combustible fossil fuels, and when it combusts it leaves behind nothing but water vapor -- a seeming silver bullet for the clean energy industry. Not only can it be used to replace things like coking coal, which wind and solar can’t replace because of the ultra-high temperatures needed, green hydrogen could also be a key component to scaling up other clean energies by providing a green method of storing energy that doesn’t require things like lithium-ion batteries, which in turn rely on finite rare Earth metals and minerals There are already plenty of industries that rely on burning hydrogen and have done so for years, but that doesn’t make them clean, because hydrogen is only as green as the energy that is used to make it. The vast majority of hydrogen users are burning gray hydrogen, which is produced using fossil fuels and which therefore has a worryingly large carbon footprint. Hydrogen made using the less emissions-intensive natural gas is sometimes distinguished from this grouping and referred to as blue hydrogen. And green hydrogen, the holy grail of hydrogens, is produced using clean and renewable energies. 

So why isn’t it being used on a massive scale? Quite simply, green hydrogen is still far too expensive to produce for the clean fuel stock to enter the market in any meaningful way. “Meeting the ambitious plans being made for [green hydrogen] means building a giant industry almost from scratch,” Bloomberg Green explained last month in a report cheekily titled “Why Hydrogen Is the Hottest Thing in Green Energy.” 

Related: Record Decline In U.S. Crude Stockpiles Fuels Oil Rally

Since green hydrogen is still in its nascency as an industry, production costs are far too high for scalability. To become competitive with the other, more mainstream and more polluting forms of hydrogen -- blue hydrogen and gray hydrogen -- green hydrogen would need to bring down production costs to less than one dollar per kilogram. As it stands, green hydrogen costs several times that generally falling between $2.50 and $4.50 a kilogram to produce. A BloombergNEF analysis projects that green hydrogen may be able to cut its costs down to a competitive level by 2030, but only in a scenario in which both electricity production and electrolyzer capacity are also scaled “at a time when the world’s generators and grids already will be straining to keep up with demand from newly electrified vehicles.” This could be a real hurdle, as the United States already desperately needs to modernize its power grid.

The good news is that there are already some major players with even more majorly deep pockets leading the charge. The most recent, and perhaps the most significant of these, comes from a surprising source: the world’s wealthiest oil company. Saudi Aramco has doubled down on green hydrogen in recent weeks as investors turn away from Big Oil. “Hydrogen is real,” Aramco Chief Technology Officer Ahmad Al Khowaiter told CNBC in a recent interview. The statement came on the heels of an entire day of presentations by Aramco executives and partners extolling the virtues and lofty goals of the oil giant’s foray into hydrogen. “Today we’re showing that the technologies for the use of hydrogen are mature and commercially available… and we see this kind of as an inflection point in the market for hydrogen,” Al Khowaiter was quoted by CNBC. 

The plans that they outlined, however, weren’t really plans per se. The presentations, for all they offered in the way of lofty ideals and waxing poetic on hydrogen’s role in a decarbonizing future, were extremely light on details, logistics, and any kind of deliverables. Despite this general mushiness and ambiguity, Aramco’s willingness to align itself with hydrogen in any sense is big and exciting news for the budding industry. When a company as big and rich as Saudi Aramco says they see a major market opportunity forming, the world listens.

By Haley Zaremba for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News