KBR to Create Kuwait Green Hydrogen Masterplan

KBR has been awarded a consultancy contract by Kuwait Petroleum Corporation to develop a nationwide master plan to produce 17GW of renewable energy and 25GW of green hydrogen by 2050.

Under the terms of the contract, KBR will provide consultancy services to develop a strategy for the phased deployment of significant wind and solar power and electricity storage capacity.

The renewable energy capacity will be linked to the production of green hydrogen for internal industrial use as well as export. The work is expected to be completed within the next 18 months and KBR will conduct market analysis, technical and commercial feasibility studies, and training of Kuwaiti nationals.

Jay Ibrahim, President of KBR Sustainable Technology Solutions, said the award highlights its consultancy capabilities in developing major energy transition investments at a national level, backed by decades of experience in successfully delivering projects and technology deployments in the GCC region.

By 2032, Kuwait expects to produce green hydrogen at a competitive cost, estimated at $3.22 using PEM technology and $4.41 using SOEC technology.

But the oil-rich GCC nation needs to convince investors that it has overcome slow decision-making and demonstrated an ability to move renewable energy projects forward. Plans to develop 2 GW of renewable energy capacity are reportedly underway in 2021.

In an April update, Kuwait aimed to double its renewable energy output from 15% to 30% by 2030 and to 50% by 2050 – 10 years ahead of its net-zero emissions target.

Results from the Oxford Institute for Energy Studies show that Kuwait’s green hydrogen is more competitive than elsewhere, but currently cannot compete with oil, coal and gas without a carbon tax (>$1.5/kg).

The oil and gas sector dominates Kuwait’s economy, accounting for more than 40% of its GDP.