Altaaqa – Mitsui

Potential Cooperation
Green Hydrogen Opportunity in KSA

2
Green Hydrogen: The opportunity
Global hydrogen demand at 530 MTPA by 2050

• H2 production is a large and growing industry:

• In 2019, about 70 MT of dedicated production per year, larger than the primary energy supply
of Germany

• By 2025, the Australian Government estimates global H2 demand at 530 MTPA

• Almost all H2 production is using fossil fuels, emitting 830 million tonnes of CO2 per year,
representing 9-12 tonnes of CO2 per tonne of H2

• A small part (2%) is produced by electrolysis using electricity and water, consuming approximately
50 kilowatt-hours of electricity per kilogram of hydrogen produced

• Hydrogen:
• It can help to decarbonize long-haul transport and many different industries like oil refineries,
chemicals, cement, aluminium, iron and steel, etc., and;
• It can transport renewable energy over a long distance and store it long term
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Green Hydrogen: The opportunity
H2 opportunity in KSA

• Saudi Arabia is uniquely placed to become one global leader in blue and green H2 production:
• Availability of very large unused land;
• Unlimited water resources;
• Ultra-cheap renewable energy; and,
• Oil fields to store CO2

• The Saudi Government has identified hydrogen as a strategic key industry for the future of the
Kingdom

• Saudi Arabia is very well located geographically to supply H 2 to Europe, Africa and Asia

• Altaaqa considers it very important to act fast together with Mitsui to become a local leader and
secure a relevant place in the hydrogen industry globally

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Green Hydrogen: KSA Opportunity
Partnership to cover a significant portion of the H2 value chain
Final Consumer

Mobility

rt
H2 Expo Industry: Chemical,
efied
Liqu steel, refineries, etc.

H2 Local consumption

Household (SNG)

Exp
ort

Cheap RE from Water purification: H2 production NH3 and other

solar and wind Ground water, through water chemicals
Recycled waste water, or electrolysis production Power generation
Desalinated water

5
Green Hydrogen: Process and Timeline
Medium term project: 6 years
This is a medium term initiative to be developed in the next 3.5 years and to get to full scale within 6
years

Development process:

2 months 1 month 4 months 1 year 2 years 2.5 years

Negotiate and Form joint Pre-feasibility Feasibility Large scale

Pilot project(s)
sign MOU working team study study project
• Overall project • Parties put together a • Evaluate all available • Detailed study of the • Permitting, design and • Selection of the
boundaries and team with the required technologies and pre-selected installation of the pilot winning technology
objectives technical and technology providers technologies project(s) • Negotiation of the
• Timeline management expertise • Investigate the different • Select a technology • Evaluation period for commercial
• Funding commitment technology’s roadmaps partner, or several, for project(s) performance arrangements
• Decide on the most installation of small • Permitting and
promising technologies scale semi-commercial installation of the first
• Or, if the project should demonstration projects commercial project
move forward • Financing
• Construction

6
Renewable Energy Opportunity in KSA

7
Renewable Energy: The opportunity

• The Saudi Government is taking the first steps to liberalize the electricity market

• The new Electricity Law foresees that the RE developers will be able to develop their own projects
and sell the electricity to private clients using the grid to transport the electricity (exact details will
be known in a few months)

• Great opportunities for Altaaqa and Mitsui:

 To develop its own RE projects and sell the electricity to large private offtakers

 To develop profitable projects without having to go through the current cut-throat tenders

 To properly integrate the RE development business with the green H 2 production