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OAPEC: The Arab countries are interested in investing in hydrogen to meet the expected demand for it in the future

28-03-2023

The General Secretariat of the Organization of Arab Petroleum Exporting Countries (OAPEC) confirmed that the Arab countries pay great attention to investing in hydrogen to meet the expected future demand for it in major markets such as Europe and Asia. This came in a statement issued by (OAPEC) today, Monday, on the occasion of its participation in the tenth session of the United Nations Gas Experts Group, which was held recently in Geneva. (OAPEC) said that the Arab countries are also seeking to open a window for demand for (hydrogen) internally in some sectors such as the industrial and transport sectors. She pointed to the increase in the number of hydrogen projects announced in the Arab countries at the beginning of this year to 73 projects with a diversified portfolio that includes the production and export of hydrogen, transporting it through pipelines, as well as its use in transport applications of various kinds. She stated that blue hydrogen production projects produced from natural gas with carbon sequestration (and its blue ammonia derivatives) are of great interest to Arab countries, and their number reaches 13 projects. It indicated that the region is the least expensive to produce compared to other regions, which amounts to $1.4 per kilogram, compared to $2.5 to $3 per kilogram globally. She explained that a package of blue hydrogen and blue ammonia projects is being implemented, which is the largest in terms of production capacity in the world, such as the blue ammonia production project with a capacity of 1 million tons annually within the integrated industrial system (Tazez) in the Ruwais complex in the United Arab Emirates, which is expected to enter into operation in 2025. . She added that the blue ammonia production project in the State of Qatar also has a capacity of 1.2 million tons per year, and is expected to be operational in 2026, while the global Saudi Arabia project is under implementation, which aims to produce blue hydrogen in Jubail, with a capacity of 153 thousand tons per year. And she stressed that these and other projects will enable Arab countries to be leaders in the blue ammonia market, to become the largest source of it by 2030. It reported that the Arab countries began producing and exporting several experimental shipments of blue ammonia to major markets such as Japan, South Korea and Germany. It is noteworthy that OAPEC has been participating in meetings of gas experts at the United Nations since 2016 in order to enhance cooperation with international institutions, present its vision on the most important developments in the gas and hydrogen industry, and exchange views and views on energy issues of common concern.