Recently, the Saudi Public Investment Fund (PIF) is preparing to invest billions of dollars in the field of hydrogen energy and establish a new company to produce low-carbon hydrogen fuel.

It is reported that the new company, named "Energy Solutions," will be officially announced as early as this month and is expected to be led by former CEO of Thyssenkrupp Uhde, Cord Landsmann.

PIF also stated that it will invest at least $10 billion in the company, and this figure may grow significantly in the coming years, depending on the demand for hydrogen and its investment channels.

According to informed sources, some of the investments will be made in conjunction with the state-owned oil producer Saudi Aramco.

As early as 2019, Saudi Arabia had plans for low-carbon hydrogen. At that time, Saudi Aramco exported the world's first batch of blue ammonia from Saudi Arabia to Japan.

Subsequently, in 2020, Saudi Aramco announced the launch of the largest shale gas development project outside the United States, with plans to invest $110 billion in the development of the Jafurah natural gas field. The field is estimated to contain 200 trillion cubic feet of natural gas. In terms of usage, Saudi Aramco no longer exports these natural gases in the form of liquefied natural gas (LNG), but instead uses them to produce cleaner fuels—blue hydrogen.

Until this July, Saudi Aramco announced that the company had signed a final agreement to acquire a 50% stake in Blue Hydrogen Industrial Gases Company (BHIG) to develop low-carbon hydrogen business and expand the new energy investment portfolio. However, at that time, Saudi Aramco did not disclose the transaction amount.

Low-carbon hydrogen refers to the process of producing one kilogram of hydrogen with carbon dioxide emissions of less than 14.51 kilograms, which is commonly referred to in the industry as "blue hydrogen." In principle, blue hydrogen is produced from natural gas through steam methane reforming or autothermal steam reforming, with the resulting carbon dioxide being captured and stored. Since greenhouse gases are captured, the impact on the Earth's environment can be mitigated.

In terms of purpose, the various layouts in the field of low-carbon hydrogen are based on Saudi Arabia's consideration of achieving a net-zero target by 2060.

It is reported that as early as October 2021, Saudi Arabia's Crown Prince Salman pledged at the "Saudi Green Initiative" summit to achieve net-zero emissions in Saudi Arabia by 2060, while reducing carbon emissions by 278 million tons per year.In addition to its strategic positioning in low-carbon hydrogen, Saudi Arabia is also making significant efforts in the field of green hydrogen. It is reported that in 2021, Saudi Aramco invested $5 billion to officially build a green hydrogen plant, which uses clean energy sources such as solar and wind power to produce hydrogen. The plant is scheduled to be successfully delivered and operational by 2025, making it one of the world's largest green hydrogen manufacturing plants.

Furthermore, Saudi Arabia has also engaged in cooperation with China regarding hydrogen energy. In August 2022, Saudi Aramco signed a memorandum of cooperation with Sinopec, covering areas such as investment in petrochemical projects, oil and refining engineering services, material supply, equipment manufacturing, carbon capture, and hydrogen energy. In December of the same year, Saudi Aramco signed a memorandum of understanding with Shandong Energy Group, involving cooperation in technologies related to hydrogen energy, renewable energy, and carbon capture and storage.