Energy transition costs $270 trillion by 2050

In an interview with Sky News Arabia, Saudi Aramco CEO Amin Al-Nasser expects the world’s transition to clean energy to exceed $270 trillion over the next twenty-seven years. The timetable for energy transition should be logical and take into account the capabilities of countries and their needs.

The needs and capacities of countries should be considered. The Asian continent, for example, accounts for 40 percent of global energy consumption and has an estimated population of five billion people with a low average income (about 7-8 thousand dollars). Countries’ capabilities should be considered in comparison to developed countries, developing,” Nasser said.

On the sidelines of the eighth edition of the OPEC International Conference held in Vienna, Al-Nasser said that Aramco plans to produce 11 million tons of blue hydrogen in the first phase, responding to a question from a Sky News Arabia representative.

Saudi Aramco’s CEO, Amin al-Nasser, emphasized the importance of hydrogen in the energy future, but dismissed it as short-term due to the challenges it faces, primarily high cost, infrastructure and technology. It is needed at the end-use stage, i.e. the technologies needed to recover the energy, convert it from ammonia to hydrogen once it reaches the final destination.

and categorized Ammonia It has low emissions due to its size Carbon dioxide Emissions during its production are previously captured and used in refining and processing applications.

To clarify the current high price of hydrogen, Al-Nasser said, the price of blue hydrogen is between $200-250 per barrel of oil, while the price of green hydrogen is estimated at around $400 per barrel of oil equivalent.

The Saudi company aims to export blue hydrogen – by replacing natural gas and capturing the carbon dioxide emitted in the process – on a large scale, starting in 2030.

Aramco and SABIC Agro-Nutrients received the world’s first independent certifications in August 2022 recognizing blue hydrogen and blue ammonia production.

German company TUV Rheinland, a leader in systems testing, inspection and certification services to existing international standards, has awarded certificates to SABIC Agri-Nutrients in Jubail and Saudi Aramco, a wholly-owned subsidiary of Saudi Aramco, Jubail Aramco Refining Company (SASREF). )

In 2020, sent Aramco Saudi Arabia With cooperation Sabek It was the first to ship low-emission ammonia to Japan in a pilot project.

The most important takeaways from the meeting with Saudi Aramco CEO Amin Al-Nasser were:

• The energy transition could cost the world up to $270 trillion by 2050
• Asia accounts for 40 percent of global energy consumption
• The timetable for energy transition should be logical
• We plan to produce 11 million tonnes of blue hydrogen in the initial phase
• Hydrogen will play an important role in the future, but not in the near term
• We need time to make hydrogen affordable