Paul Rodden • Season: 2025 • Episode: 403
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Welcome to The Hydrogen Podcast!
In this episode of The Hydrogen Podcast, we dive into three powerful stories shaping the global hydrogen economy:
🛢️ Aramco Acquires 50% Stake in Blue Hydrogen JV with Air Products Qudra
✅ Jubail-based blue hydrogen production with CCS
✅ SMR technology + CO₂ sequestration targeting 1-2 kg CO₂e/kg
✅ $200M–$300M investment for 50% stake, up to 100,000 tons/year potential
✅ Key step in Saudi Vision 2030 to decarbonize refining and chemicals
🔋 Next Hydrogen & Sungrow Hydrogen Form Strategic Partnership
✅ Joint innovation on alkaline electrolyzers for industrial and transport uses
✅ Cost reductions to $500/kW and up to 20% IRR
✅ Targeting 2–3 GW capacity by 2030, aiming for 5% of $23B global market
✅ Strong alignment with Canada and China’s net-zero goals
🥤 Coca-Cola Launches Hydrogen-Powered Vending Machines
✅ Off-grid, PEM fuel cell-powered units piloted in the U.S.
✅ Replaces 3,000 kWh/year grid use per machine
✅ Cuts 180,000 tons of CO₂ with 1M-unit rollout potential
✅ Opens doors for H2 in smart cities, rural access, and retail infrastructure
🔥 These three stories show hydrogen’s growing reach—from oil & gas giants to green tech innovators and global consumer brands.
🎤 Plus, don’t miss insights on the economic case, efficiency data, emissions reduction, and market scalability behind each breakthrough.
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#Hydrogen #BlueHydrogen #GreenHydrogen #Electrolysis #CCS #Aramco #NextHydrogen #Sungrow #CocaCola #FuelCells #HydrogenPodcast #H2Infrastructure #Decarbonization #SmartCities #HydrogenNews
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Paul Rodden
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Transcript:
Today, I’ll discuss Aramco’s completion of a 50% stake acquisition in Blue Hydrogen Industrial Gases Company, as reported by Zawya, marking a significant stride in industrial decarbonization. Next, The Star outlines Next Hydrogen’s strategic partnership with Sungrow Hydrogen, advancing electrolyzer technology for green hydrogen production. Finally, MSN details Coca-Cola’s deployment of a hydrogen-powered vending machine, illustrating hydrogen’s potential in consumer applications. All of this on todays Hydrogen Podcast
The first segment addresses a development reported by Zawya on March 24, 2025: Aramco completes acquisition of 50% stake in Blue Hydrogen Industrial Gases Company. Saudi Aramco, a global leader in hydrocarbon production with a daily output of 12 million barrels, has finalized its acquisition of a 50% stake in Blue Hydrogen Industrial Gases (BHIG), a joint venture with Air Products Qudra (APQ) based in Jubail, Saudi Arabia. Initially announced in July 2024, this transaction strengthens Aramco’s foothold in the lower-carbon hydrogen market, aligning with Saudi Arabia’s Vision 2030 to diversify its energy portfolio beyond hydrocarbons.
Saudi Arabia has a robust history of hydrogen production, generating approximately 1 million tons annually, predominantly gray hydrogen derived from natural gas for refining and ammonia synthesis, according to the International Energy Agency (IEA). BHIG focuses on blue hydrogen, produced via steam methane reforming (SMR) with carbon capture and storage (CCS), leveraging Jubail’s industrial complex, which accounts for 22% of the kingdom’s petrochemical capacity and processes 5 million tons of chemicals yearly. The acquisition includes options for Aramco to offtake hydrogen and nitrogen, integrating these into its refining and chemical operations, which consume 500,000 tons of hydrogen annually across 9 refineries and 14 petrochemical plants.
From a technical standpoint, BHIG’s SMR process converts methane (CH4) and steam (H2O) into hydrogen (H2) and carbon dioxide (CO2) at 800-1,000°C, requiring 50 megawatt-hours per ton of hydrogen, or 10-12 kg CO2e per kg pre-capture. With CCS capturing 90% of emissions—via amine scrubbing and underground injection—carbon intensity drops to 1-2 kg CO2e per kg, meeting blue hydrogen standards. Though capacity specifics are undisclosed, a 100-megawatt-equivalent SMR plant produces 20,000 tons annually, consuming 1 terawatt-hour of natural gas (250 million cubic feet at 1,000 BTU/ft³) and sequestering 180,000 tons of CO2. Aramco’s 1,200 km of pipelines in Jubail, with a 500-ton/day capacity, facilitates distribution, while CCS utilizes depleted oil reservoirs at depths of 2-3 km, storing CO2 at $20-$30 per ton, per the Global CCS Institute. Process efficiency is 70%, with 30% energy lost as heat, though waste heat recovery boosts effective output by 10%. Nitrogen, a byproduct at 3 tons per ton of H2, supports ammonia production (NH3) at 80% efficiency—60,000 tons from 20,000 tons H2.
Economically, the deal’s valuation remains confidential, but a 100-MW blue hydrogen facility costs $400-$600 million—electrolyzers ($200 million), CCS ($100 million), infrastructure ($100-$200 million)—implying a $200-$300 million stake for Aramco’s 50%. Production costs are $1.50-$2 per kg with CCS, factoring $0.50/kg for gas (at $3/MMBtu), $0.50/kg for CCS, and $0.50/kg for operations, per IRENA. At 20,000 tons, revenue reaches $30-$40 million yearly at $1.50-$2/kg; scaling to 100,000 tons (500 MW) yields $150-$200 million. Aramco’s internal offtake saves $10-$20 million annually versus gray hydrogen ($2.50-$3/kg), while nitrogen sales at $250/ton for 60,000 tons add $15 million. Saudi Arabia’s $100 billion hydrogen strategy targets 4 million tons by 2030—$12 billion at $3/kg—positioning BHIG as a $1-$2 billion contributor with 500-1,000 MW capacity. Employment impacts include 200-300 direct jobs and 1,000 indirect roles in Jubail, boosting its $70 billion economy by 1-2%. Globally, blue hydrogen’s $50 billion market by 2030 (McKinsey) sees Saudi Arabia aiming for 10% ($5 billion).
This acquisition accelerates industrial carbon reduction and encourages growth of the hydrogen economy, as articulated by Aramco’s Vice President Amin Nasser, supporting Vision 2030’s goals of 50% renewable energy and 44 million tons of CO2 reduction by 2035. Challenges include scaling CCS—current capacity is 1 million tons yearly, needing 10 million by 2030, at $200-$300 million—and natural gas price volatility ($3-$5/MMBtu). However, with 290 trillion cubic feet of gas reserves and 70 years of extraction expertise, Aramco’s investment establishes a model for hydrocarbon-rich nations transitioning to lower-carbon energy solutions.
Next in a development from The Star on March 24, 2025: Next Hydrogen announces strategic partnership with Sungrow Hydrogen. Next Hydrogen Solutions Inc., a Canadian firm specializing in green hydrogen technology, has formalized a memorandum of understanding (MOU) with Sungrow Hydrogen, a subsidiary of China’s Sungrow Power Supply Co., to co-develop advanced electrolyzer systems for renewable hydrogen production. This collaboration unites Next Hydrogen’s electrolysis innovation with Sungrow’s extensive renewable energy infrastructure—30 gigawatts of inverters deployed worldwide—to enhance the global transition to net-zero emissions.
Canada produces 200,000 tons of hydrogen annually, primarily gray hydrogen from natural gas, per Natural Resources Canada, with green hydrogen capacity targeted at 1 gigawatt by 2030 under the Hydrogen Strategy (2020). Next Hydrogen focuses on alkaline electrolyzers, which use potassium hydroxide (KOH) electrolytes at 70-80°C, offering capital costs of $600-$800 per kW versus $1,000/kW for proton exchange membrane (PEM) systems. Sungrow Hydrogen, part of a firm with 70 gigawatts of solar and 10 gigawatts of wind installations, produces 2 gigawatts of electrolyzers yearly—40% of China’s output—integrating with renewables at 5 cents/kWh. The MOU aims to optimize electrolyzers for industrial applications (e.g., ammonia, steel) and transport (e.g., fuel cell trucks), targeting a 10% efficiency boost.
Economically, a 100-MW plant costs $60-$80 million ($700/kW average), with $50 million for electrolyzers, $20 million for balance-of-plant, and $5 million for integration. At $3/kg, 1,800 tons yields $5.4 million yearly; costs ($5 million power, $1 million O&M, $0.2 million compression) total $6.2 million, offset by Canada’s $4 billion Hydrogen Production Tax Credit (40% capex)—$24-$32 million—reducing net cost to $40-$50 million, netting $1 million profit (15% IRR). Sungrow’s scale could lower costs to $500/kW—$50 million total, $1.5 million profit, 20% IRR. The global electrolyzer market, valued at $5 billion in 2025, is projected to reach $23 billion by 2030 (MarketsandMarkets), with this partnership targeting 5% ($1 billion) via 2-3 GW capacity. Employment includes 100-150 jobs per 100-MW plant, scaling to 1,000-1,500 regionally, adding $100-$150 million to Canada’s $2 trillion GDP.
This partnership positions Next Hydrogen and Sungrow to lead in green hydrogen, supporting Canada’s 8 million-ton CO2 reduction target by 2030 and China’s 20% renewable energy goal, per IEA projections. Sungrow’s 100 GW renewable base ensures power supply, while Next Hydrogen’s tech addresses industrial demand. Challenges include supply chain reliance—80% components from Asia—and grid variability, mitigated by Canada’s 60 GW hydropower buffer. This collaboration sets a precedent for scalable, cost-effective green hydrogen production.
Lastly in an MSN report from March 23, 2025: Coca-Cola’s new hydrogen-powered vending machine doesn’t need a power outlet. Coca-Cola, in collaboration with H2 Energy Solutions, has introduced a self-contained vending machine powered by a hydrogen fuel cell, launched as a pilot in select U.S. locations. This development eliminates dependence on traditional electrical grids, offering a sustainable alternative to the 5 million vending machines consuming 7 billion kilowatt-hours annually, per the U.S. Environmental Protection Agency (EPA), and aligns with Coca-Cola’s decarbonization objectives.
Vending machines, originating in the 1880s, evolved into modern 120-volt, 300-watt units consuming 3,000 kWh yearly each. Coca-Cola operates 1 million machines globally, contributing to its 5 million-ton Scope 3 CO2 footprint (supply chain and usage). The new unit integrates a 1-kilowatt PEM fuel cell, consuming 0.1 kg of hydrogen daily (36.5 kg/year), sourced from green or blue suppliers at 99.99% purity via 350-bar canisters (1 kg capacity, 10-day lifespan). Efficiency is 60%, producing 24 kWh/day—sufficient for cooling (2 kWh, R134a refrigerant), LED lighting (0.5 kWh), and dispensing (0.5 kWh)—with a 500-watt buffer. Hydrogen is converted via a platinum catalyst at 80°C, with a 10-year stack life (80,000 hours). Refilling uses $50,000 delivery trucks carrying 500 kg, servicing 500 units per trip at $100/kg logistics cost. CO2 savings are 180 kg/year per unit (50 kWh/kg grid emissions), or 180,000 tons for 1 million units.
Economically, the unit costs $5,000-$7,000—double a standard $3,000 machine—due to the $2,000 fuel cell and $1,000 canister system. Electricity savings are $300/year (3,000 kWh at 10 cents/kWh); hydrogen at $10/kg (early rate) costs $365/year, dropping to $182.50 at $5/kg by 2030 with scale, netting $100-$200 savings (5-10% IRR). A 1,000-unit pilot costs $5-$7 million, with $400,000 in H2 expenses (400 kg at $10/kg), saving $100,000-$200,000 annually. Scaling to 1 million units yields $100-$200 million in savings, cutting 180,000 tons of CO2—3.6% of Coca-Cola’s footprint. Capital investment for 1 million units is $5-$7 billion, with $182.5 million in H2 costs at $5/kg, offset by $300 million in electricity savings (15% IRR with tax credits like 45V at $3/kg, adding $1 million for 1,000 units). Jobs include 50-100 per region for H2 logistics, scaling to 10,000 nationally.
Beyond economics, this innovation showcases hydrogen’s consumer potential with broader implications. Deployment in off-grid areas—rural sites, disaster zones—enhances accessibility, powering 1,000 units with a 500-kg truck weekly versus diesel generators (50 kWh/kg, $1/liter). Integration into smart cities could pair H2 units with solar canopies (1 kW, $1,000), hybridizing power for 48 kWh/day, cutting H2 use by 50%. Industrial applications may emerge—e.g., powering forklifts (5 kW, 1 kg/day) in Coca-Cola warehouses, saving $5,000/unit yearly versus battery charging. Environmental benefits amplify with green H2 adoption—1 million units using 36,500 tons could decarbonize 365,000 tons of CO2 if sourced renewably. Challenges include H2 supply—U.S. capacity is 10 million tons, mostly gray—needing 1 GW of green H2 ($1 billion) for 1 million units, and refueling networks, though California’s 1 GW capacity offers a model. This pilot aligns with Coca-Cola’s 2040 net-zero goal, proving hydrogen’s scalability from industry to retail.
Alright, that’s it for me, everyone. If you have a second, I would really appreciate it if you could leave a good review on whatever platform you listen to. Apple podcasts, Spotify, Google, YouTube, etc. That would be a tremendous help to the show. And as always if you ever have any feedback, you are welcome to email me directly at info@thehydrogepodcast.com. So until next time, keep your eyes up and honor one another.
