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PIF forms hydrogen national champion

11 July 2024

Saudi Arabia's Public Investment Fund (PIF) has created a new company that focuses on co-investing in low-carbon hydrogen projects in Saudi Arabia.

Known as Energy Solutions Company (ESC), which may not be the entity's final name, the company is envisaged to become a national champion and world leader in low-carbon hydrogen production, storage, transportation and marketing services and solutions, according to a document seen by MEED.

ESC is envisaged to "own and operate green hydrogen projects in the kingdom, low-carbon hydrogen current and planned infrastructure, as well as the global marketing of its products, all underpinned by stringent targets in terms of [the] localisation of technology, skills and supply chain ecosystem." 

In addition to driving the development of the green hydrogen market in the kingdom, ESC will also co-invest with Saudi Aramco in the state energy giant's blue hydrogen developments.   

There are at least three green hydrogen projects in the conceptual design or study stage in Saudi Arabia.

All three have PIF as their main partner or one of their partners.

These projects include those planned by teams separately led by France's Engie, Japan's Marubeni and South Korea's Posco. 

The world's largest integrated green hydrogen and ammonia production facility is under construction in Neom in Saudi Arabia's northern region.

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Jennifer Aguinaldo

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