Riyadh – Mubasher: The Arab Petroleum Investments Corporation (APICORP) highlighted in its MENA Power Investment Outlook 2020-2024 key regional developments and prevalent trends in the power sector over the short and medium terms.
Among the report’s key findings is the emergence of the MENA region as a strong candidate for becoming a major blue and green hydrogen-exporting region due to the combination of low-cost gas resources and low-cost renewable energy.
Saudi Arabia and Morocco have already taken measurable steps to bolster their position as low-cost exporters of blue and green hydrogen, as well as net-zero ammonia and other low-carbon products.
Another key trend noted by the report is the predicted uptick in planned investments directed to power transmission and distribution projects in several countries over the next five years, supported by the rise of renewables and focus on boosting regional interconnectivity.
Moreover, the role of the private sector and financing in the power sector, however, is still largely dependent on sector reforms and government guarantees, the report said.
In July, Air Products signed an agreement with ACWA Power and NEOM for a $5 billion world-scale green hydrogen-based ammonia production facility powered by renewable energy. The project, equally owned by the three partners, will be based in Saudi Arabia’s new economic zone, NEOM, and will produce green ammonia for export to global markets.
In September, the Saudi Arabian Oil Company (Saudi Aramco) and Japan’s Institute of Energy Economics(IEEJ) collaborated with the Saudi Basic Industries Corporation (SABIC) and demonstrated the production and shipment of blue ammonia from Saudi Arabia to Japan with support from the Japanese economy and trade ministry.
Forty tonnes of high-grade blue ammonia were dispatched to Japan for use in zero-carbon power generation.