Turning the energy industry towards the development of clean hydrogen energy

According to the exclusive report of Energy Press, Russia’s attack on Ukraine caused energy security to become one of the important foreign policy priorities of many countries. At the same time, the changes of many countries in the field of reducing fossil fuels in the light of international treaties to prevent the spread of climate change, caused some of the most important major oil and gas producing countries in the world to diversify their foreign exchange resources and their entire economy. They increased investments in the renewable energy sector, especially “green hydrogen”.

But what is hydrogen? “Green hydrogen” refers to hydrogen that does not use fossil fuels during its production, and the hydrogen in water is separated from oxygen during the electrolysis or electrolysis process. Hydrogen is a light and effective fuel that, from the point of view of clean energy experts and environmental activists, if it is obtained without carbon production, it is one of the suitable alternatives for fossil fuels, the use of which has environmental consequences. According to a Bloomberg report, many analysts predict that green hydrogen will become cheaper in the next decade. On the other hand, “blue hydrogen” is also a type of fuel that results from the fusion of fossil fuels with hydrogen and carbon. According to experts, blue hydrogen can be introduced as an alternative to fossil fuels with limited additional costs.

As the world’s largest oil exporter, Saudi Arabia benefited the most from the energy crisis and Russia’s attack on Ukraine in the last few years, and now it is trying to establish its position as the leading exporter of hydrogen. Meanwhile, the Saudi energy minister recently spoke about Riyadh’s desire to export hydrogen to the whole world. Prince Abdulaziz bin Salman, the Minister of Energy of Saudi Arabia, recently said that the shift towards green energy should be under practical and realistic controls and the need to increase environmental awareness is a collective responsibility. The Minister of Energy of Saudi Arabia said that his country is ready to participate and cooperate with everyone to transfer hydrogen in the form of ammonia through the pipeline. Saudi Arabia’s energy minister also said that his country is ready to participate and cooperate with all countries to transfer hydrogen in the form of ammonia through pipelines. He also added: “The issue of transportation and transportation of ammonia must be converted into hydrogen in molecular form, and the technology that enables us to do this still faces challenges.”

Meanwhile, Saudi Arabia took the first serious steps to develop the hydrogen industry in September 2020. At that time, Aramco exported 40 tons of blue ammonia to Japan. This action was the first example in the supply chain of aqueous ammonia in the world.

Vietnam is the latest Asian country to enter the hydrogen market by announcing its national hydrogen development strategy until 2030 last February. The interest of investors of foreign energy companies in this issue also shows the growing market of new fuel source in this country. The presence of Vietnam in this market shows the country’s interest in participating in the clean energy market. On March 7, 2024, officials from China’s Hudian Corporation, a subsidiary of one of China’s largest power generators, and Vietnam’s Ming Quang Co., Ltd. met to invest $2.39 billion in the green hydrogen project. The companies announced that the project will include a 1,200 MW wind farm, an 800 MW solar plant, and a water electrolysis plant to produce hydrogen, along with storage and transportation infrastructure. On the other hand, last February 7, Vietnam launched its national hydrogen development strategy with a vision of 2030, and announced the goal of producing between 100,000 and 500,000 tons of hydrogen per year from renewable energy and other carbon sequestration processes.

African countries also have their own place in this market. Africa is emerging as a key player in the global hydrogen economy, and several countries across the continent are poised to become significant producers of green hydrogen. The African Green Hydrogen Alliance, established in 2022, is a testament to the continent’s joint efforts in hydrogen production. According to Avanergy’s analytical website, this alliance has had a positive performance in exploiting Africa’s renewable energy potential to meet local and global energy needs while adhering to the goals of the Paris Agreement. By 2050, Africa is expected to produce enough hydrogen to meet its domestic needs, estimated at 10 to 18 megatons, while about 40 megatons will likely be exported, according to a McKinsey Foundation analysis.

Egypt is leading the way with several key projects in the pipeline, including a $5 billion project to produce ammonia. The project involves companies from Norway, the United Arab Emirates and Egypt itself, and could be one of the largest green hydrogen projects worldwide, utilizing Egypt’s significant solar and wind resources.

South Africa’s “Hydrogen Valley” initiative, an industrial cluster that brings together various hydrogen applications to form an integrated hydrogen ecosystem, is another important development of the Black Continent in this field. The South African government is exploring the hydrogen valley in collaboration with several local and foreign companies. Last year, South Africa and the governments of the Netherlands and Denmark launched a $1 billion green hydrogen fund aimed at encouraging investment in renewable energy projects as part of efforts to support the plan.

Oman also has a lot to say in this competition, and this country plans to produce an average of one million tons of hydrogen annually by 2030, most of which will be sent to East Asia and Europe. Oman announced its plan for green hydrogen production in May 2021. Based on this, Oman will build one of the largest green hydrogen facilities in the world with an investment of 30 billion dollars and with the participation of its own state energy company, Intercontinental Energy Hong Kong and Energytech Kuwait.

Meanwhile, according to many experts, Iran’s empty place in this lucrative market is felt very much. It should be mentioned that in Bahman 1402, the managing director of Iran’s National Oil Products Refining and Distribution Company said that a mechanism has been included to place hydrogen as a clean fuel alongside gasoline and CNG, although for this, the pricing of energy carriers can have a great impact.