Saudi Arabia to Invest Over $10bn in Low-Carbon Hydrogen via New Subsidiary

Saudi Arabia is gearing up to invest billions in clean hydrogen through a relatively unknown subsidiary of its sovereign wealth fund, led by a former executive from German industrial giant Thyssenkrupp, according to reports.

The Energy Solutions Company (ESC), owned by the Public Investment Fund (PIF), will allocate at least $10 billion for low-carbon hydrogen production, Bloomberg reports, citing sources. This amount could increase significantly depending on the global demand for clean hydrogen.

Some of ESC's investments will be made in collaboration with Saudi Aramco, which is responsible for achieving the kingdom’s goal of producing 15% of the world’s blue hydrogen (created using fossil fuels with carbon capture technology).

Although ESC has minimal public visibility, it has been active since at least June last year, when PIF announced it had acquired a 6% stake in Thyssenkrupp Nucera, a German electrolyzer manufacturer 50% owned by Thyssenkrupp AG. Nucera is providing its alkaline electrolysis technology for Saudi Arabia’s 2.2GW Neom project, a collaboration between Air Products, ACWA Power, and the Saudi government.