Economics of clean hydrogen and ammonia ‘very challenged’ – Aramco

Buyers in Asia reluctant to commit despite Saudi state firm being one of the lowest-cost producers

The economics of low-carbon hydrogen and ammonia are “very, very challenged” and the industry is grappling with difficult questions over the role of policy and the ability to pass costs on to end-users, Jean-Paul Desrochers, manager of low-carbon hydrogen at state firm Saudi Aramco, told the World Hydrogen Congress in Rotterdam. Even as one of the lowest-cost producers of blue hydrogen, ammonia and green hydrogen, Aramco is encountering reluctance among potential offtakers in Asia because of the price, he said. The firm is in talks with potential buyers in Japan and South Korea, which are bringing in regulations and incentives to try to drive use of ammonia in the power sector. “Without thos