KOC sets Kuwait renewable hydrogen course

23 July 2024

Commentary
Jennifer Aguinaldo
Energy & technology editor

Kuwait Oil Company (KOC) has awarded US-headquartered KBR an advisory consulting contract to develop a country-wide masterplan for the production of 17GW of renewables and 25GW of green hydrogen by 2050. 

While the figures do not seem to match – the ratio of renewable energy to green hydrogen electrolysis production capacity is usually 2:1 – this is by far the boldest potential renewable energy and green hydrogen programme ever announced in the Gulf state, which in June suffered major power outages due to soaring temperatures.

The 18-month contract will involve developing a market analysis and the techno-commercial feasibility studies, as well as the training of Kuwaiti nationals.

According to KBR, the renewable power capability will be linked to the production of green hydrogen for internal industrial use, as well as for export purposes.

Kuwait has been taking steps to build renewable energy capacity. For instance, the prequalification process is under way for its first utility-scale solar photovoltaic independent power project. 

In March, the Minister of Electricity, Water & Renewable Energy, Salem Falah Al-Hajraf, also confirmed a plan for Kuwait to have a renewable energy installed capacity of 22.1GW by 2030 as part of its new 20-year strategy that ends in 2050.

In reality, however, Kuwait has just 70MW of installed solar and wind energy capacity, with no new plants built since 2018.

And, despite a seeming contradiction, having a Kuwait Petroleum Corporation (KPC) subsidiary drive the state's renewable hydrogen programme could provide much-needed impetus.

Indeed, Kuwait National Petroleum Company was the original procuring entity for the 1.5GW Al-Dibdibah solar project before it was transferred to the Kuwait Authority for Partnership Projects.

Furthermore, the indefinite suspension of Kuwait's parliament in May created an expectation that Kuwait's project activity would be revived.

Shortly after the parliament's suspension, KPC began sending signals that it is preparing for a period of increased project activity, not least by launching a portal to streamline the project tendering process.

As such, KOC's involvement in the state's long-term renewable and green hydrogen programme could be a positive move that leads to concrete new projects that will help steer the state towards its energy diversification agenda. 

 

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Jennifer Aguinaldo
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