The promise of clean, green energy
Green hydrogen gets a boost during Saudi crown prince’s visit to Greece in the form of a deal to deepen ties in the field
Saudi Arabia and Greece signed an agreement to deepen ties in green hydrogen and clean energy on the sidelines of the official visit of Crown Prince Mohammed bin Salman, ahead of the Saudi-Greek Investment Forum on Wednesday.
During his two-day visit, the crown prince said there were further opportunities to enhance ties, including linking the electricity grid to southwest Europe and through Greece to provide the continent with cheaper renewable energy.
“Also, we are working (on) ... hydrogen and how to turn Greece, as a hub for Europe, to hydrogen. That’s a game changer for both of us. Also, we are working (on) … linking the telecommunication grid,” the crown prince said in a statement issued by the Greek prime minister’s office.
The crown prince said he had a lot on the agenda for the talks, citing investment, trade, economic, political and security issues. He promised he had not come “empty-handed” and that his plans would be a “game changer for both countries and for the whole region.”
A memorandum signed between Saudi Energy Minister Prince Abdulaziz bin Salman and Greek Foreign Affairs Minister Nikolaos Dendias set a framework for cooperation in renewable energy, electrical interconnection, exporting electricity to Greece and Europe, and clean hydrogen and its transfer to Europe, the Saudi Press Agency reported.
The agreement also looked at ways to work together in energy efficiency and the oil, gas, and petrochemical industries, as well as the adoption of a circular economy approach to carbon and technologies to reduce the effects of climate change.
Both countries agreed to explore the scope of capturing carbon, reusing, transporting, and storing gas, and capturing carbon directly from the air.
They also signed an agreement to promote digital transformation and innovation in the fields of energy, including cybersecurity, while working to develop partnerships to localize materials, products, and services related to all energy sectors and their associated supply chains and technologies.
World leaders increasingly recognize the enormous potential of what some energy experts call “the H Factor” in the global energy mix.
In Saudi Arabia, hydrogen is moving to the center of the energy mix, with a $5 billion plan by NEOM, the smart megacity planned as part of the Vision 2030 strategy, to develop “green” hydrogen as its main power source.
Developed with Saudi and international energy companies, NEOM also aims to export green hydrogen. It is the biggest hydrogen project in the world, with a 650-ton capacity.
Using hydrogen as a fuel is not a new technology. The space industry has been using it in liquid form for decades for rocket propulsion. But it does not occur in nature as a stand-alone chemical, so has to be extracted from various compounds.
Most industrial use involves separating it from methane gas — a common byproduct of fossil fuels — but it can also be produced via the electrolysis of water. If the electricity used in this process is generated from a renewable source, like solar or wind power, then the end product is “green hydrogen.”
The beauty of the chemical is that it combines enormous power generation with zero emissions. Several countries have used it in fuel cells to power electric vehicles, but it has not yet been adopted widely.
The attractions of hydrogen give it a potentially crucial role in the transition away from hydrocarbons — oil, gas, and coal — as the world’s main energy source. Europe, which is leading the evolution of the new energy systems, has deployed ambitious targets to reach carbon neutrality by 2050.
The EU’s decarbonization plans have recently accelerated following the conflict between Russia and Ukraine, as the region plans to be independent of Russian oil and gas as soon as possible.
More than 70 countries have declared net-zero targets since almost 200 parties adopted the Paris Agreement. But to achieve these long-term strategies and commitments, close cooperation on multiple levels must happen to have a just and inclusive global energy transition.
Saudi Arabia has grand plans to become the top supplier of hydrogen in the region and the world. This is driven by Saudi Arabia’s quest to diversify its exports, build a new renewable industry, lower its carbon footprint and address climate change goals.
The Kingdom has several competitive advantages enabling it to play a significant role in the production of green hydrogen on a global scale. The region has abundant solar and wind energy, ranking among the highest solar radiation in the world, making it a high-potential region for renewables.
According to the International Energy Agency, the abundance of renewables makes the Gulf Cooperation Council region potentially one of the most costcompetitive regions for hydrogen production, with long-term costs that could reach between $1.5 and $2 per kilogram.
Having ample access to substantial funding from the Public Investment Fund also puts the Kingdom on a superior level compared to other regions.
Strategically positioned between the large consumer-driven markets of Europe and East Asia, Saudi Arabia is benefitting from its position by building and operating a strong export infrastructure.
The Kingdom has developed green solutions to mitigate climate change by introducing the Saudi Green Initiative and the Middle East Green Initiative, with more than 60 sub-initiatives under their umbrella.
Saudi Aramco is also taking concrete steps to reach operational net-zero emissions by 2050. The company recently published its sustainability report with pledges to reduce its upstream carbon intensity by at least 15 percent carbon dioxide by 2035 and leverage technology to produce low-carbon hydrogen.
Hydrogen now stands among the best options to ensure sustainable, secure and affordable energy and is being considered as the fuel of the future by many countries aiming to decarbonize their industries while maintaining economic growth.