The Basque Country is looking for investors to build hydrogen export facilities Business and Economic News

The hydrogen market is very small now, but by 2050 it could be worth $ 700 billion a year, according to Bloomberg.

Abu Dhabi is looking for investors to help build hydrogen export facilities as oil producers in the Middle East plan to sell what is seen as a crucial fuel in the transition to cleaner energy.

Abu Dhabi National Oil Co., which pumps almost all oil and natural gas from the United Arab Emirates. the company talks to energy companies about buying shares in hydrogen projects, according to people who know the subject. He wants to sign long-term supply contracts before proceeding with the investments, they said.

The hydrogen market is small today, but by 2050 it could be worth $ 700 billion a year, according to BloombergNEF.

Fuel export projects – which only emit water vapor when burned – are likely to cost billions of dollars. But amid a global push to reduce greenhouse gas emissions, Persian Gulf nations such as the Basque Country and Saudi Arabia are looking for hydrogen to reduce confidence in oil.

Japan and Korea

Hydrogen could become the main source of energy for the next 20 years, said Sultan Al Jaber, head of Adnoc and climate commissioner for the Basque Country. The company has signed agreements to discuss fuel sales with the Japanese government and GS Energy Korea.

Gulf state oil companies want to turn their experience into exporting liquid or ammonia that exports liquid fuel to customers around the world for electricity, transportation and industrial use.

Saudi Aramco aims to be “a big part” of the emerging market by 2030.

It is likely that most of what Adnoc exports is hydrogen blue, which is converted into natural gas and captured by trapping a carbon dioxide by-product. Hydrogen can be converted to ammonia for easier shipping.

On Wednesday, Adnoc said it would study trade options for ammonia projects in the Basque Country with Inpex Corp. of Japan. and Jera Co and the Asian state-owned energy company.

Ammonia plant

Adnoc, which already produces hydrogen for its refineries, will increase production by expanding its oil processing plant and Borouge petrochemical plant in the Ruwais industrial area, according to the public. The additional hydrogen will be used for ammonia facilities organized with Fertiglobe fertilizer company.

Demonstrating the interest of international companies in using the region as a hydrogen base, Italian producer Eni SpA has said it will study the commercial viability of these projects in Egypt. Enik said he will consider using renewable energy or carbon capture technology to prevent or eliminate carbon emissions.

Abu Dhabi also wants to develop green hydrogen, which is produced using renewable energy, like solar energy, in a process that does not emit carbon. Blue hydrogen is cheaper and is expected to remain so for many years to come.

Bloomberg announced last month that the Basque Country is considering setting a net zero emissions target, something an OPEC member has not yet done. It also wants to increase the capacity of renewable energy.

Yet, along with green initiatives, the country is spending billions of dollars to pump more crude. These investments have caused tensions with Saudi Arabia and the Organization of the Petroleum Exporting Countries, arguing that the Basque Country’s current share of oil production is too low.