Essays by Eric Worrall
“…we will not penalize a project that does not secure an offtake agreement.”.
Aramco considers LNG exports as hydrogen talks prove difficult
May 11, 2023
Aramco considers LNG exports as hydrogen talks get tough
Saudi Aramco is considering exporting liquefied natural gas instead of green hydrogen, as negotiations with potential buyers of the latter fuel prove difficult.
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However, current technology means that green hydrogen could cost the equivalent of about $250 a barrel of oil, Aramco executives said.
Amin Nasser, for blue hydrogen said in a call with analysts:
It is difficult to identify any underwriting agreements in Europe.
“Even customers in Japan and South Korea are waiting for government incentives. Until they get these offers, it would be very expensive for them to go after that blue hydrogen gas.“
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“This is a very expensive program,” Nasser said. “It’s a lot of capital and you need customers. Therefore We will not penalize a project that does not secure an offtake agreement.”
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Read more: https://hydrogen-central.com/aramco-weighs-lng-exports-hydrogen-talks-prove-tough/
Blue hydrogen is produced from fossil fuels, but CO2 is expected to be buried through carbon sequestration.
I wish our politicians were smart enough to wait until there was real demand for the product, before spending billions of taxpayer dollars on building the infrastructure to produce hydrogen. that no one really wants.
As for the Saudis, I doubt they will ultimately accept the low-risk option of exporting low-cost natural gas to countries with hydrogen programs, so those who claim to support the hydrogen economy may also bear financial risks when building infrastructure.
The Saudi position seems clear and reasonable. It’s hard to justify building expensive eco-friendly hydrogen facilities when, despite all the hype, no one really wants the product.
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