Qatar – Hydrogen Supply Chain Opportunity in the Existing Liquefied Natural Gas (LNG) Economy
Qatar – Hydrogen Supply Chain Opportunity in the Existing Liquefied Natural Gas (LNG) Economy.
For decades, Qatar has been among the world’s leading producers and exporters of liquified natural gas (LNG). The country owns the largest gas-to-liquid (GTL) plant in the world, reducing the LNG production cost. Qatar’s operational approach is technically innovative, and the country seeks to implement advanced technologies to its operations. Once the North Field Expansion is fully online, Qatar is poised to become the world’s top LNG producer by 2030, with an increased strategic focus on energy efficiency and sustainability.
The global market is shifting priorities towards a sustainable future in which Hydrogen (H2) can play a role. To achieve climate change goals in Qatar, where a significant LNG supply chain exists, areas of growth potential include solutions and technologies that integrate renewable energy, electrolysis, and H2 production with the existing LNG facilities. In 2020, QatarEnergy (QE) began exploring the viability of Hydrogen and ammonia as energy vectors. Specifically, QE established working groups to assess the feasibility of H2 production and hydrogen transportation infrastructure development locally and internationally. H2 serves as a high-potential solution in Qatar to mitigate the global impact of climate change. H2 solutions also have potential locally to address poor air quality in Qatar by decarbonizing various sectors, including energy, industrial, shipping, and transportation. Market potential exists for U.S. companies offering technical studies, Research and Development (R&D), and innovative products and services in the integration and production of the H2 global supply chain.
For more information about this opportunity, please contact:
With an increased focus on sustainability and climate change issues in recent years, Qatar Petroleum was renamed QatarEnergy (QE) in October 2021. In August 2021, QE (then QP) announced its intent to reduce its Green House Gas (GHG) emissions by 25 percent by 2030 and allocated $170 million to this effort. This announcement was made in conjunction with first update of the 2015 Nationally Determined Contribution (NDC) targets in the United Nations Framework Convention on Climate Change (UNFCCC), which focuses on flare and methane reduction efforts. QE points to its economically extractable LNG as an important, more environmentally friendly transitional energy source globally as the world shifts to renewables. QE has been exploring research studies in carbon capture, hydrogen technology, and the global supply chain. It also began investing in renewables by launching Qatar’s first solar power plant, in an effort to diversify Qatar’s energy portfolio.
QE has developed a comprehensive sustainability plan that aims to enhance environmental friendliness and efficiency in both existing facilities and those under development as a part of the country’s North Field LNG Expansion. Detailed information about this framework, including H2 incorporation in the plan, is available in QE’s sustainability report (hyperlink included).
Embedding H2 technology is a highlight of the future of the energy sector in Qatar, with early-stage government studies and techno-economic assessments underway for a H2 hub in Qatar. As a part of this process, Qatari government entities are reviewing policy and regulations in collaboration with local and international industry technical experts to analyze the production cost, infrastructure investment, storage, transportation, and distribution that would be required for this initiative. Both government and industry are working together to optimize H2 usage in the automotive industry, and to conduct R&D to identify applications and usage in diverse, untapped industries.
In 2018, the International Maritime Organization (IMO), a United Nations Agency, set a target to reduce its greenhouse gas emissions by 50 percent by 2050. Qatar joined the IMO the same year to reaffirm its commitment to a clean and sustainable environment. To achieve this IMO goal, QE is targeting over 100 LNG shipping vessels owned by its subsidiary, Nakilat, to enhance efficiency, lower carbon emissions through carbon capture, and potentially produce H2.
Sub-sectors with strong market potential include the following areas:
• Carbon capture and storage
• R&D – Hydrogen Production Analysis H2 infrastructure, equipment, products, services, and investments H2 storage, transportation, and distribution
• H2 safety and maintenance measures
• Multi-purpose H2 usage
• H2 supply chain implementations
• H2 and clean fuel cell technology
• Smart solutions, including artificial intelligence (AI)
Next Steps for the U.S. Client
U.S. companies offering quality solutions for these opportunities should work with Commercial Specialist Golda Agnazata (Golda.Agnazata@trade.gov) at the U.S. Commercial Service in Qatar to explore matchmaking, market research, and other assistance.
As trade shows resume following the Covid-19 pandemic, U.S. firms interested in energy efficiency and sustainability should also reach out to CS Qatar to note participation in trade shows in the oil and gas, energy, and environmental technologies sectors. CS Qatar often recruits delegations to key shows and can introduce U.S. company executives to Qatari industry representatives and government officials at these shows.
Additionally, U.S. firms should closely monitor the following resources (hyperlinks included):
• QE tender website for upcoming projects related to oil and gas industry
• Qatar Environment and Energy Research Institute (QEERI), part of Hamad bin Khalifa University (HBKU)
• Al-Attiyah Foundation for upcoming webinars, symposia, and energy/environment industry-related events in Qatar