Blue Ammonia: Inside Saudi Arabia’s Push Towards Clean Energy Transition
Saudi Arabia is leading a push towards clean energy transition, by increasing the production of alternative energy, particularly blue ammonia.
As part of its broader economic diversification plans that aim to reduce reliance on oil revenues, the Kingdom is harnessing its technological and economic capabilities to position itself as a global leader in blue ammonia production, according to Arab News.
What is Blue Ammonia?
Blue ammonia, NH3, is a compound consisting of nitrogen and blue hydrogen derived from natural gas feedstocks, with the capture of 90% of carbon dioxide emissions generated during its production. Therefore, it has less environmental impact.
As a result, blue ammonia is an attractive alternative to conventional fossil fuels. It has gained an increased momentum as a source for clean energy, especially in industries such as shipping, aviation, and heavy manufacturing, where decarbonization is more difficult. It is also used in agriculture as a fertilizer.
Saudi Energy Transition
Under Vision 2030, Saudi Arabia is targeting a 130GW of renewable power capacity by 2030. Hence, blue ammonia lies in the heart of the Kingdom’s plans to produce at least 50% of its energy needs from renewables by the end of the decade.
The transition to clean energy is pivotal to deliver Saudi Arabia’s climate commitments and contribute to global efforts to cut carbon emissions. In the light of this, the Chief Advisor of Energy and Sustainability, Abdulaziz Almizani, told Arab News that the Kingdom will rely on natural gas and renewables to secure its energy needs by 2030.
“Fifty percent should be by natural gas and the other 50 percent should be with renewables and alternative energy sources, hydrogen, and blue ammonia,” he said.
Circular Carbon Economy
In addition to advancing the production of blue ammonia, Saudi Arabia is embracing the circular carbon economy model to control and reduce emissions, by integrating the 4Rs: reduce, reuse, recycle, and remove.
This effort includes investing in technologies related to carbon capture, utilization and storage to remove carbon dioxide and recycle it into useful products. The Kingdom has launched several initiatives in that regard. However, the Saudi oil giant, Aramco, spearheads these efforts with promising projects.
Blue Ammonia Projects
According to Aramco, the Saudi giant aims to produce up to 11 million tons a year of blue ammonia by 2030. In 2019, Saudi Aramco and Air Products launched the first hydrogen fueling station in the Kingdom, in the Dhahran Techno Valley Science Park.
Furthermore, Aramco in 2020 partnered with the Institute of Energy Economics in Japan and SABIC to ship 40 tons of high-grade blue ammonia from Saudi Arabia to Japan.
In recognition of their efforts, Aramco and Sabic Agri-Nutrients received the world’s first independent certifications recognizing blue hydrogen and ammonia production from Germany’s certification agency TÜV Rheinland. These certifications marked a new milestone for both Saudi companies towards becoming global leaders in clean energy production.
Moreover, the Saudi Arabian Mining Co., or Maaden, is significantly contributing to these efforts. In 2022, it delivered 138,000 tons of blue ammonia to South Korea, one of the largest quantities approved worldwide.
Increased Investments
Saudi Arabia is making substantial investments in clean energy to establish its position as a global leader in clean energy production. This is evident in the Kingdom’s new projects, such as the innovative city NEOM, which is poised to host the world’s largest green ammonia plant by 2025.
In August, NEOM announced a strategic partnership with King Abdullah University of Science and Technology (KAUST) to advance the Kingdom’s green economy by developing hydrogen and sustainable fuels production technologies through three innovative applied research projects.
Additionally, the Kingdom has introduced a strong regulatory framework designed to promote clean energy. In the light of this, Almizani underscored the importance of strong regulations in the energy sector to encourage private sector participation.
Almizani also expressed his hope that the blue ammonia costs will gradually decrease due to technological advancements, making it more accessible. As this clean energy alternative becomes more cost-effective, Saudi Arabia is optimally-positioned to become a global leader in clean energy production.
