Cutting cost of carbon capture key to hitting zero emissions goals, climate change conference told

Cutting cost of carbon capture key to hitting zero emissions goals, climate change conference told
The comments were made during a panel discussion at the Middle East and North Africa Climate Week in Riyadh.
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Updated 10 October 2023
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Cutting cost of carbon capture key to hitting zero emissions goals, climate change conference told

Cutting cost of carbon capture key to hitting zero emissions goals, climate change conference told

RIYADH: As Saudi Arabia continues to utilize technology to reduce its climate footprint, direct air capture, coupled with carbon dioxide storage units, is set to play a pivotal role in the Kingdom’s transition, experts say.

During a panel discussion at the Middle East and North Africa Climate Week in Riyadh, Daniel Nathan, chief project development officer at Climeworks, stated there is no point in accomplishing DAC if CO2 cannot be stored. 

“If we use the Kingdom here as the example, we need good storage locations. There are plenty of opportunities. It’s a matter of technology,” Nathan said.

He further explained that the objective extends beyond storage for the sake of DAC. It also serves the broader purpose of conserving resources for the “greater good.”

Nathan highlighted Iceland and the US as examples of good practice in this area, as they are working on constructing sites for new plants to capture air carbon which will be deployed in the coming years.

The panelist also discussed the importance of selecting an appropriate energy source for powering DAC technology and highlighted the preference for using renewable energy sources over fossil fuels.

“Geothermal is an excellent choice. If there is geothermal, it is typically one of the cheaper options. But in this region, in the Kingdom in particular, you are blessed with a lot of sun,” he said.

The panel discussion also underscored challenges surrounding carbon capture technology in difficult-to-abate industries, including refineries, petrochemicals, cement, and steel production.

Krishna Singhania, chief growth officer of Carbon Clean, talked about the “cost challenge” involved with the process, adding: “Traditionally the carbon capture has been very expensive ... with the new generation of the carbon capture technology, we are trying to reduce the cost of carbon capture point source, post-combustion emissions drastically,” said Krishna Singhania, chief growth officer of Carbon Clean.”

He called for the innovation of new technologies to help reduce the size of carbon capture plants, which will assist with the decarbonization of brownfield sites.

Furthermore, Singhania flagged up the time it takes to build carbon capture plants as another challenge facing their development – particularly with the global aim to reach net zero emissions by 2050.

“It’s not going to happen if we are going to take three to five years to build every single carbon capture plant,” he explained, adding: “So we had to come up with very standard sizes, innovative manufacturing ideas, innovative application of our technologies into products to be able to deliver a dozen plants every year.”

The discussion focused on the importance of emission sources in Saudi Arabia and supporting existing infrastructure in the context of transitioning to alternative energy resources.

According to Humam Al-Ghamdi, chief engineer in the Circular Carbon Economy at the Ministry of Energy, the Kingdom wants to make sure that it is leveraging the existing framework for previous sectors that have been already established. 

However, he added that this could have a “severe impact” on areas like aviation, maritime, steel, and cement.

The Riyadh-hosted event, which will take place from Oct. 8 until Oct. 12, will offer the Kingdom a chance to demonstrate how it is spearheading the region’s green transition with programs like the Saudi Green Initiative and the adoption of renewables.


Saudi Arabia launches bid for seven mining exploration licenses

Saudi Arabia launches bid for seven mining exploration licenses
Updated 07 August 2024
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Saudi Arabia launches bid for seven mining exploration licenses

Saudi Arabia launches bid for seven mining exploration licenses

RIYADH: Saudi Arabia has launched a competitive bid for seven new mining exploration licenses, covering an area of approximately 1,000 sq. km.

Announced on Aug. 7 by the Ministry of Industry and Mineral Resources, this initiative seeks to attract both local and international investors to explore these promising sites.

The exploration sites span various regions and are rich in valuable minerals. The Umm Qasr site in Riyadh, covering over 20 sq. km., is known for its deposits of gold, silver, lead, and zinc.

Another site, Jebel Sabha in Riyadh, extends over 171 sq. km. and contains silver, lead, zinc, and cobalt. Wadi Doush in Asir, which spans more than 157 sq. km., holds deposits of gold, silver, and copper.

The Shuaib Marqan site in Riyadh covers over 92 sq. km and is rich in copper, silver, and gold. The Wadi Al-Jouna site in Asir, the largest of the sites, encompasses 425 sq. km. and contains copper, zinc, silver, and gold.

The Hazm Shubat site in Asir, covering over 93 sq. km., is noted for its gold deposits. Lastly, the Huwaimdhan exploration site in Makkah covers an area of more than 34 sq. km. and also contains gold.

This competition is part of the broader Exploration Enablement Program, designed to accelerate the exploration and development of Saudi Arabia's estimated mineral wealth, valued at SR9.3 trillion ($2.48 trillion). The initiative supports Vision 2030’s goal of establishing mining as a crucial pillar of the national industry.

Interested parties must submit their technical bids by early September 2024, with the winners expected to be announced by the end of the month. The ministry has made geological and technical data available through a dedicated platform to assist bidders.

The evaluation process for the bids will be both transparent and fair, with 70 percent of the evaluation based on the technical work program and expertise, and the remaining 30 percent based on community contributions and innovation.

To further encourage investment, new incentives include support of up to SR7.5 million for companies holding exploration licenses for less than five years, allowing 100 percent foreign ownership, and financing up to 75 percent of capital costs through the Saudi Industrial Development Fund.

Investors interested in participating can visit the ministry’s mining platform to review detailed information and download relevant technical and geological reports.


Closing Bell: Saudi, Gulf stocks post gains following global slump

Closing Bell: Saudi, Gulf stocks post gains following global slump
Updated 07 August 2024
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Closing Bell: Saudi, Gulf stocks post gains following global slump

Closing Bell: Saudi, Gulf stocks post gains following global slump
  • Kingdom’s Tadawul All Share Index closed at 11,729.71, up by 0.43%
  • Qatar’s exchange gained 0.28%, Bahrain bourse edged up 0.09%, Kuwait bourse advanced 0.84%, and Dubai Financial Market rose by 1.45%

RIYADH: Stock markets in the Middle East continued to recover following “Black Monday,” when global indices plunged due to concerns over a potential US recession triggered by a weak jobs report from the world’s largest economy. 

Saudi Arabia’s Tadawul All Share Index closed at 11,729.71, up by 50.55 points, or 0.43 percent on Wednesday. 

The total trading turnover of the benchmark index was SR6.98 billion ($1.86 billion), as 169 of the stocks advanced, while 62 retreated. 

The Kingdom’s parallel market Nomu rose 207.67 points, or 0.81 percent, to close at 25,903.77, with 30 of the listed stocks advancing and 31 retreating. 

The MSCI Tadawul Index gained 0.79 points, or 0.05 percent, to close at 1,467.35. 

Rabigh Refining and Petrochemical Co. was the top performer of the day, with its share price climbing 10 percent to SR8.14. 

Other notable performers included Baazeem Trading Co. and Al-Baha Investment and Development Co. 

The worst performer was Malath Cooperative Insurance Co. whose share price dropped by 6.12 percent to SR15.66. 

Walaa Cooperative Insurance Co. and Rasan Information Technology Co. also saw declines. 

On the announcements front, Kingdom Holding Co. reported a 76.43 percent increase in net profits for the first half of this year, reaching SR820 million. The increase was attributed to higher equity results, gains on investment property sales, and reduced financial charges. 

Saudi Electricity Co. reported a 16.5 percent rise in net profits for the first half of 2024, totaling SR5.5 billion, driven by increased revenue and reduced finance costs. 

Saudi Cable Co. saw an 87.7 percent drop in net profit to SR7.02 million, while SAL Saudi Logistics Services Co. reported a 70.71 percent increase in net profit to reach SR363 million due to higher revenues and cost control efforts. 

Rabigh Refining and Petrochemical Co. reported a net loss of SR2.46 billion for the first half of the year, widening from SR2.1 billion in the same period last year attributed to decreased sales volumes and margins. 

Alkhorayef Water and Power Technologies Co. reported a substantial increase in net profits, reaching SR119 million in the first half of 2024, marking a 75.57 percent surge compared to the same period the previous year, driven primarily by a boost in operating profits.

National Metal Manufacturing and Casting Co. experienced a net loss of SR19.17 million during the first six months of the year. This represents a deterioration from the SR12.46 million loss recorded in the corresponding period of 2023. The increased loss is attributed to a decline in sales of axle, spare parts, and casting products, as well as a reduction in the average selling price of drawn wire products.

Riyadh Cement Co. achieved net profit of SR134 million in the first half of 2024, a 6.22 percent increase from the same period last year due to higher sales prices and increased revenues, despite rising Zakat expenses.

On Wednesday, the Dubai Financial Market rose by 1.45 percent, while the Abu Dhabi Exchange increased by 1.05 percent. 

The Qatar Stock Exchange gained 0.28 percent, the Bahrain bourse edged up by 0.09 percent, and the Kuwait bourse advanced by 0.84 percent. 

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King Abdulaziz Port sets record with 20,645 containers handled on single ship

King Abdulaziz Port sets record with 20,645 containers handled on single ship
Updated 07 August 2024
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King Abdulaziz Port sets record with 20,645 containers handled on single ship

King Abdulaziz Port sets record with 20,645 containers handled on single ship

RIYADH: Saudi Arabia’s maritime sector is experiencing significant expansion, highlighted by the King Abdulaziz Port in Dammam achieving a milestone in container handling.

The port recently set a new record by managing 20,645 standard containers on a single vessel, the Cosco Shipping Aquarius 036E. This achievement underscores the port's crucial role in supporting trade movement and the logistics sector.

This development aligns with the National Transport and Logistics Strategy’s goals to establish the Kingdom as a global logistics hub connecting three continents. It also reflects the success of the Saudi Ports Authority, known as Mawani, in enhancing port efficiency and strengthening the Kingdom’s ties with global markets, thereby supporting national exports.

Ongoing infrastructure improvements at King Abdulaziz Port include the recent addition of 21 coastal and bridge cranes, as part of a development plan backed by SR7 billion ($1.86 billion) in investment from commercial support contracts with Saudi Global Ports Co., a subsidiary of the Public Investment Fund.

A landmark contract with the Chinese company SANY will see the supply of 80 electric trucks to the port, marking the largest single contract for such vehicles ever signed by the Chinese firm.

These enhancements aim to boost the port’s competitive edge and confirm its international status in maritime transport and logistics. King Abdulaziz Port, equipped with advanced facilities, has also reached notable container handling records, including 292,612 standard containers in May.

In March, Mawani announced a new shipping service connecting Dammam to East Asia, linking the port to Shanghai, Xiamen, Dachan Bay, and Qingdao in China, as well as Busan in South Korea, Klang in Malaysia, Sohar in Oman, and Khor Fakkan in the UAE.

This service further enhances the port’s strategic position as the Kingdom’s main port on the Arabian Gulf, linked to the Riyadh Dry Port by rail, and a key transit point for goods to the eastern and central regions of Saudi Arabia.


UAE banks’ savings deposits up 8.4% to reach $80.2bn

UAE banks’ savings deposits up 8.4% to reach $80.2bn
Updated 07 August 2024
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UAE banks’ savings deposits up 8.4% to reach $80.2bn

UAE banks’ savings deposits up 8.4% to reach $80.2bn

RIYADH: The UAE banking sector has demonstrated growth and stability in recent months. According to the latest data, the total value of savings deposits held by banks surged by 8.4 percent year on year, reaching 294.66 billion dirhams, equivalent to approximately $80.2 billion.

Of these deposits, 247.49 billion dirhams were held in local currency, while 47.17 billion dirhams were in foreign currencies.

This upward trend in savings deposits continued with a 1.68 percent increase from April, when the total amount stood at 289.78 billion dirhams. In addition, the value of time deposits saw a remarkable rise of 17 percent compared to the previous year, reaching 842.98 billion dirhams. Demand deposits also experienced substantial growth, climbing by more than 10 percent year-on-year to 1.04 trillion dirhams.

The banking sector’s net international reserves saw a notable surge of 29 percent, totaling 1.23 trillion dirhams by the end of May. This total includes 763.88 billion dirhams held by the Central Bank of the UAE and 472.68 billion dirhams held by other banks operating in the UAE. In conjunction with this, CBUAE’s gold reserves grew by 19.7 percent year on year, reaching 20.61 billion dirhams. The gold reserves also saw a 1.3 percent increase in May compared to April.

Transaction volumes through the UAE Funds Transfer System also experienced growth. By the end of May, the total value of transactions rose to 7.9 trillion dirhams, marking a 17 percent increase from the same period in the previous year. This total includes 4.96 trillion dirhams in interbank transfers and 2.93 trillion dirhams in transfers between bank customers. Additionally, the value of cheques cleared using the Image Cheque Clearing System reached 544.4 billion dirhams by the end of May.

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Arab oil and gas sector attracted investments worth $406bn over 22 years: report

Arab oil and gas sector attracted investments worth $406bn over 22 years: report
Updated 07 August 2024
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Arab oil and gas sector attracted investments worth $406bn over 22 years: report

Arab oil and gas sector attracted investments worth $406bn over 22 years: report
  • US emerged as the leading investor, with 85 projects representing approximately 14 percent of the total.

RIYADH: Arab nations have attracted $406 billion in investments from 356 foreign and regional companies in the oil and gas sector over the past 22 years, according to recent data from the Arab Investment and Export Credit Guarantee Corp., also known as Dhaman.

During this period, which spans from January 2003 to May 2024, the region has seen the execution of 610 projects.

The US has emerged as the leading investor, with 85 projects representing approximately 14 percent of the total. In terms of investment costs, Russia has taken the lead, contributing $61.5 billion, which constitutes about 15.2 percent of the total investment.

The Middle East remains the largest holder of proven oil reserves globally. As of 2023, it accounts for approximately 55.5 percent of the world’s known oil reserves, according to the global statistics platform Statista. However, the region’s share has declined from nearly 63 percent in 1960 to less than 56 percent by 2020.

Future projections indicate a continued decline in proven oil reserves in the Arab region. By 2024, reserves are expected to drop to 704 billion barrels, or about 41.3 percent of the global total. This figure is anticipated to decrease further by 7 percent to 654.5 billion barrels by 2030. Additionally, proven natural gas reserves in the region are forecasted to reach approximately 58 trillion cubic meters, accounting for 26.8 percent of the global total. This figure is expected to decline by 7.5 percent to 53.53 trillion cubic meters by 2030.

Despite these anticipated reductions, the production of crude oil, compressed gas, and other liquids in Arab countries is projected to increase. Production is expected to rise by 6.4 percent to 28.7 million barrels per day in 2024, with an anticipated increase to around 33 million barrels per day by 2030.

Dhaman, headquartered in Kuwait, provides guarantee services against commercial and non-commercial risks in Arab countries and is owned by the governments of Arab states along with four Arab financial institutions.