KBR has been awarded an advisory consulting contract by Kuwait Oil Company for the development of a country-wide masterplan for the production of 17GW of renewables and 25GW of green hydrogen by 2050.
Under the terms of the contract, KBR will provide advisory consulting services to develop a phased strategy for the deployment of significant wind and solar power, combined with power storage capability.
The renewable power capability will be linked to the production of green hydrogen for internal industrial use, as well as for export purposes. This work is expected to be performed over the next 18 months, with KBR developing a market analysis, techno-commercial feasibility studies, as well training of Kuwaiti nationals.
Jay Ibrahim, KBR President Sustainable Technology Solutions, said the win highlighted its advisory capabilities in the development of major energy transition investments at a national level, supported by decades of successful project delivery and technology deployment in the GCC region.
Kuwait anticipates producing green hydrogen at competitive costs, estimated between $3.22 utilising PEM technology and $4.41 using SOEC technology, by 2032.
But the oil-rich GCC state will need to convince investors that it has overcome slow decision-making and demonstrated an ability to move renewables projects forward. Plans to develop 2 GW of renewables capacity were reported in 2021.
In an update in April, Kuwait aims to double renewable energy production from 15 to 30% by 2030, and to 50% by 2050 – 10 years ahead of targeting Net Zero.
Results indicate that green hydrogen in Kuwait is more competitive than in other regions, but currently not competitive (>$1.5/kg) with oil, coal, and gas in absence of carbon taxes, according to The Oxford Institute For Energy Studies.
The oil and natural gas industry dominates Kuwait’s economy, accounting for over 40% of its GDP.
