‘We will lead the world in green energy,’ Saudi Arabia says
Saudi Arabia — the world’s biggest oil exporter — hopes to become leader in clean fuel in coming decades
On the north-western coastline of Saudi Arabia, a multibillion-dollar hydrogen plant is under construction.
Situated in the planned city of NEOM, if the new plant meets its daily target of producing 650 tonnes of environmentally friendly “green” hydrogen, it will be the world’s largest.
Providing cutting-edge technology for Saudi Arabia’s green goals is ACWA Power, whose chairman and founder, Mohammed Abunayyan spoke today at the Saudi Green Initiative, which is running alongside Cop27 in Sharm el Sheikh. For Saudi Arabia to diversify its economy’s reliance away from oil and gas, renewable energy industries are crucial.
CWA Power’s first renewable plant was built in Bulgaria back in 2010, at a time when as Mr Abunayyan recalled, Saudi Arabia was “anti-renewables”. It wasn’t until 2019, that Saudi Arabia decided to “go big” in green hydrogen to “optimise costs”.
Hailed as an alternative to fossil fuels, research from the International Renewable Energy Agency predicts hydrogen could provide as much as 12 percent of the world’s energy needs by 2050. Hence, the market is becoming competitively-fierce with other countries such as Russia and the UAE jostling for position.
Saudi Arabia’s ambition is to reach a point where, by 2030, oil is no longer used in the domestic energy mix.
Green hydrogen — the most carbon-friendly option — is made using renewable electricity to split water and can be produced anywhere. On the shores of NEOM, the year-round sunshine and steady winds will be able to power solar panels and windmills.
The plant is a joint venture between the Saudi ACWA Power and the NEOM company, but the primary driver behind Saudi Arabia’s green initiatives is the Public Investment Fund, the $500bn sovereign wealth fund chaired by crown prince Mohammed bin Salman.
Saudi’s ACWA Power has green hydrogen projects across Oman, Germany and Egypt with discussions under way with Thailand and Morocco. So does Mr Abunayyan believe that hydrogen is the fuel of the future? “The reality is that green hydrogen will dominate energy. It is the solution for many things.”
Another ACWA giga-project is further along the coast in the Saudi Arabian Red Sea region where a luxury eco-resort is months away from opening. Mr Abunayyan says he feels “blessed” that ACWA ais supplying everything when it comes to the infrastructure here.
“The Red Sea will be the first energy project in the world that will be ‘green’ in all aspects, including recycling, waste management, renewable water, desalination and power,” he said.
It will be off the grid 24 hours a day and powered 100 per cent by renewable energy.
Solar by day with energy stored in batteries for night, and under way is the construction of the biggest renewable storage in the world capable of holding 1.3 gigawatts of energy. In comparison, the storage facility today can hold 200 megawatts.
Mr Abunayyan hopes the project will showcase to other countries that this kind of green project is not only possible but also can be affordable.
“Saudi Arabia has led conventional energy for decades. Now we will to lead the world in green energy,” he said.
Find out more about the MGI summit and SGI forum here: greeninitiatives.gov.sa