Transport problems holding back $2/kg low-carbon hydrogen, says Aramco鈥檚 technology chief

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RIYADH: Low-carbon hydrogen can be produced at a cost of $2 per kg but the issue is transporting the fuel to where it is needed, according to the chief technology officer of Aramco.

Speaking at the Future Investment Initiative Forum in Riyad, Ahmad Al Khowaiter said the technology for capturing the gas has proven itself reliable 鈥渙ver many years鈥� and is 鈥渁t scale today鈥�.

Khowaiter claimed that hydrogen is the only option in 鈥渕any of the harder to decarbonise sectors鈥� as the world seeks to drastically reduce its carbon footprint.

He confirmed that Aramco, the Saudi-state owned oil and gas company, has been operating its own production carbon capture pilot with the capacity to capture 800,000 tonnes a year of carbon for the last six years with 鈥渘o problems, no challenges鈥�.

鈥淚 really do believe that technology is mature, the cost structures are very compatible with the competitive energy costs that are needed for hydrogen鈥� he told delegates at the conference, adding: 鈥淚t really does allow, for example, low carbon hydrogen to be produced today at scale with very competitive costs.鈥�

Khowaiter went on: 鈥淭he challenge with hydrogen is transport, so the big challenge is converting it to something that can be transported or compressing it in transport. 

鈥淎t the point of production we鈥檙e talking $1.5 to 拢2 a kg range, which is far below alternatives for now, as the alternatives have to scale up.鈥�