Skip to content Skip to Search
Skip navigation

UK company strikes Mideast deal for hydrogen generators

By Andrew Hammond
hydrogen fuel cell Shutterstock
Vehicles powered by hydrogen fuel cells are more efficient than those with conventional internal combustion engines and do not produce harmful tailpipe emissions
  • Alternative to diesel-powered generators
  • Tamgo will promote generators across 16 countries
  • Other clients include Aramco, Neom and Red Sea Global

UK hydrogen fuel cell company AFC Energy has signed an agreement with a leading Saudi marketer to sell its hydrogen generators in the Middle East and Central Asia.

The deal gives Saudi Arabia’s The Machinery Group (Tamgo) exclusive rights to market AFC Energy’s alternative to diesel-powered generators in 16 countries including Saudi Arabia, United Arab Emirates, Qatar, Oman, Kuwait and Kazakhstan. 

Tamgo’s clients include Saudi oil major Aramco and many of the giga-projects associated with Saudi Arabia’s Vision 2030 project to diversify away from oil revenues and develop an industrial and tourism base.

These include Neom, the Red Sea Global tourist resort and entertainment city Qiddiya. 

Tamgo is part of the Jeddah-based Zahid Group, which is involved in many of Vision 2030’s projects that aim to make Saudi Arabia a pioneer in renewable energy technologies. 

Hydrogen has been a focus of attention as competition to find cheaper and more green batteries and generators intensifies. 

Green hydrogen, produced by renewable energy sources, is still around four times more expensive than grey hydrogen, produced by electrolisers powered by natural gas or other fossil fuels. 

US car manufacturer General Motors said last year it would expand its hydrogen fuel cell business beyond vehicles, supplying hydrogen-based generators for industry. 

Japan’s Honda Motor said has developed a fuel cell system with General Motors. The country plans to make hydrogen a major power source by 2030. 

In the electric vehicle industry, hydrogen fuel cells have so far lost out to cheaper lithium-ion batteries. 

But these could also face a challenge from new technology that produces pure lithium batteries from oilfield brines, according to a partnership between US firm Pure Lithium and the Saudi-based Energy Capital Group.

Tesla CEO Elon Musk has expressed scepticism about hydrogen’s role in a shift to a more sustainable future, saying last year it was “the most dumb thing” he could imagine for energy storage.

The hydrogen rainbow

  • Green hydrogen is produced on a carbon-neutral basis through water electrolysis. 
  • Turquoise hydrogen is created when natural gas is broken down into hydrogen and solid carbon with the help of methane pyrolysis.
  • Blue hydrogen is generated from the steam reduction of natural gas. 
  • Grey hydrogen is obtained by steam reforming fossil fuels such as natural gas or coal. 
  • Sometimes other colours are ascribed to hydrogen, based on how it is produced. For red, pink and violet hydrogen, the electrolysers are driven by nuclear power. 
  • Yellow hydrogen is hydrogen produced from a mixture of renewable energies and fossil fuels. 
  • White hydrogen is a waste product of other chemical processes, while the use of coal as a fuel produces brown hydrogen.

Latest articles

Investor Tim Draper told AGBI the US must 'swing back to freedom' to avoid losing innovation to countries such as the UAE

Tim Draper: UAE benefits from US crypto ‘overregulation’

Billionaire venture capitalist Tim Draper has criticised the US for its restrictive stance on cryptocurrency, claiming it is driving innovators towards more encouraging and friendlier markets such as the UAE. The Gulf state is actively developing regulatory frameworks to lure new forms of business, amid intense regional economic competition. Dubai and Abu Dhabi have set […]

A subsidiary of Banque Misr will open the first digital-only bank in Egypt this year

Egypt to open first digital bank later this year

Misr Digital Innovation will open Egypt’s first digital bank towards the end of the year, as it looks to appeal to the North African’s country’s younger and unbanked demographic. MTI, a subsidiary of Banque Misr, is the first bank to have received approval to establish a digital bank by the Central Bank of Egypt (CBE) […]

Mukesh Ambani, chairman and managing director of Reliance Industries which will receive the investment from AIDA and US-based KKR

Abu Dhabi’s ADIA invests in Indian warehouses

The Abu Dhabi Investment Authority (ADIA) and the US-based private equity firm KKR have invested INR 12,000 crore ($1.5 billion) in India’s Reliance Retail Ventures’ warehousing assets.  Both companies have invested equal amounts in Reliance Logistics and Warehouse Holdings (RLWH), The Economic Times, an Indian financial daily, reported, citing informed sources.  RLWH was established in […]

Saudi Arabia’s industry and mineral resources minister Bandar Al-Khorayef. The country is struggling to meet an FDI target of $100bn a year by 2030

Saudi industry minister tempts investors with funding incentives

Saudi Arabia’s ministry of investments and mineral resources is prepared to finance up to 75 percent of industrial projects in the country, as the kingdom tries to boost its low foreign direct investment (FDI) numbers.  Bandar Al-Khorayef, the minister of industry and mineral resourcespointed to well-developed infrastructure across 36 industrial cities, prefabricated factories ready to […]