Saudi Aramco will aim to capture a “big percentage” of the global market for blue hydrogen but will need to sign offtake deals before planning a significant ramp-up in production, senior company executives say.

“Hydrogen is a very interesting market for us. We are looking at the markets and, basically, we are looking for offtake agreements," says Aramco president and CEO Amin Nasser.

“The major markets that you are looking at today in terms of demand are Japan and Korea,” he said during a presentation of the company’s second quarter and half-year 2021 results.

"The major markets that you are looking at today in terms of hydrogen demand are Japan and Korea" Nasser, Aramco

Aramco reported a 288pc year on year rise in net income for the second quarter, at $25.5 bn, driven by higher oil prices and a recovery in worldwide demand, supported by the global easing of Covid-19 restrictions. Net income for the first half of the year was $47.2bn, up 103pc over the same period in 2020.

Aramco has competitive advantages over its rivals in the emerging blue hydrogen market, including low-cost and plentiful gas supplies as well as access to major aquifers for carbon sequestration, Nasser noted.

He signalled that Aramco’s hydrogen position would become clearer next year.

“We are ready to grow our blue hydrogen capacity, but without offtake agreements it would be difficult to expand that programme significantly. But all of that will be in a much better position early next year in terms of capturing these opportunities,” he said.

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Author: Stuart Penson