KBR has been awarded a consulting contract by Kuwait Oil Company to develop a nationwide master plan to produce 17 GW of renewable energy and 25 GW of green hydrogen by 2050.
Under the contract, KBR will provide consulting services to develop a phased strategy for the deployment of significant amounts of wind and solar energy in combination with electricity storage options.
The renewable energy capacity will be combined with the production of green hydrogen for internal industrial use and for export. This work is to be carried out over the next 18 months. KBR will develop a market analysis, technical-commercial feasibility studies and training for Kuwaiti nationals.
Jay Ibrahim, KBR’s President of Sustainable Technology Solutions, said the award underscores the company’s advisory expertise in developing large-scale energy transition investments at the national level, backed by decades of successful project delivery and technology deployment in the GCC region.
Kuwait expects to be able to produce green hydrogen at competitive costs by 2032. These are estimated at US$3.22 using PEM technology and US$4.41 using SOEC technology.
But the oil-rich GCC state needs to convince investors that it has overcome slow decision-making and demonstrated the ability to push ahead with renewable energy projects. In 2021, plans to develop 2 GW of renewable energy capacity were reported.
In an April update, Kuwait aims to double renewable energy production from 15 to 30 percent by 2030 and to 50 percent by 2050 – 10 years ahead of its net-zero target.
According to the Oxford Institute for Energy Studies, the results suggest that green hydrogen is more competitive in Kuwait than in other regions, but is currently not competitive with oil, coal and gas (> USD 1.50/kg) due to the lack of carbon taxes.
The oil and natural gas industry dominates Kuwait’s economy, contributing over 40% to the country’s GDP.
