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Saudi Arabia’s innovation hub expands with global collaboration at SGI Forum

Saudi Arabia’s innovation hub expands with global collaboration at SGI Forum
Innovation was a focal point during the first day of the Saudi Green Initiative Forum 2024. AN
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Updated 43 min 10 sec ago
MIGUEL HADCHITY 
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Saudi Arabia’s innovation hub expands with global collaboration at SGI Forum

Saudi Arabia’s innovation hub expands with global collaboration at SGI Forum
Updated 43 min 10 sec ago
MIGUEL HADCHITY 
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RIYADH: Over 50 countries are represented in Saudi Arabia’s creative lab, ‘The Garage,’ highlighting the Kingdom’s role as a global innovation hub, according to a senior official. 

Started in April 2022 in a parking building, the facility transformed into a dynamic workspace following its relocation to a 28,000-sq.-meter headquarters at King Abdulaziz City for Science and Technology in Riyadh.

It now hosts over 300 startups, featuring 24 conference rooms, meeting areas for 1,000 people, and training facilities.

It supports firms with programs for incubation, acceleration, and mentorship, fostering global collaboration and tech innovation. 

This initiative was a focal point during the first day of the Saudi Green Initiative Forum 2024. In a panel discussion titled “Does Green Justify Industrial Policy and Protectionism?”, Munir Eldesouki, president of KACST, highlighted the significance of global collaboration in the Kingdom’s innovation strategy. 

“Today, the companies in The Garage are 50 percent international, coming from over 50 countries around the world. Up to 400 companies fit in that Garage. But the point of The Garage is that it accesses all of our labs,” Eldesouki said, highlighting its role in connecting global research with local industry.  

Eldesouki noted that the recent open-access policy for publicly funded research infrastructure has further strengthened this ecosystem, opening KACST’s labs to private sector and startup communities.

This commitment to fostering innovation is part of a broader restructuring under Vision 2030, including the formation of the Upper Council for Science, Technology, and Innovation. This council ensures coordinated efforts across various sectors, aiming to bridge scientific research with practical applications.  

Saudi Minister of Industry and Mineral Resources, Bandar Ibrahim Alkhorayef, stressed the importance of execution and practical implementation in achieving sustainability goals. “The art of ‘how’ is an important element in achieving our targets,” he said, underscoring the need for meticulous planning and structured policies alongside visionary objectives.  

Eldesouki echoed this sentiment, emphasizing the pivotal role of science and technology. “The ‘how’ comes from science and technology. They can bring forward many solutions and solve many challenges, especially in the existential challenges that we face today,” he said.  

The Kingdom’s industrial transformation initiatives, such as the Liquid Displacement Program and the Future Factories Program, demonstrate Saudi Arabia’s commitment to greener practices. These programs, supported by government funding, help industries adopt advanced technologies and transition toward sustainability.

Alkhorayef highlighted additive manufacturing as one such technology, optimizing resource use and reducing environmental impact.  

Both Alkhorayef and Eldesouki pointed to the transformative potential of emerging technologies, particularly artificial intelligence, in driving economic diversification. “Today, with how technology is accelerating, especially with AI, we see great opportunities that will actually bring down the cost, increase potential, and provide opportunities for the private sector, specifically startups,” Eldesouki noted.  

Beyond environmental targets, Saudi initiatives also aim for broader social and economic development. AlKhorayef cited the Waad Al-Shamal mining project as an example of how industrial policies can generate social benefits, particularly in underdeveloped regions.

“What we have done in Saudi Arabia, in the north of the country, in Waad Al-Shamal, in our phosphate investment today, has contributed to the society and the people,” he said.  

Looking forward, Eldesouki expressed confidence in Saudi Arabia’s leadership in green technology. “The Kingdom has now become the biggest green tech innovation hub in the world,” he said. 

Alkhorayef added that the country’s strategic geographic position enables it to connect global markets, enhancing collaboration.  

Saudi Arabia’s comprehensive approach — blending innovation, strategic planning, and international collaboration — positions it as a model for sustainable industrial transformation. These efforts, as highlighted during the SGI Forum, offer valuable insights for the global green economy. 

Topics: COP16 Saudi Green Initiative (SGI) Green & Blue

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Saudi Arabia’s shift to renewables is reaping economic rewards, says minister

Saudi Arabia’s shift to renewables is reaping economic rewards, says minister
Updated 8 min 8 sec ago
Reem Walid
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Saudi Arabia’s shift to renewables is reaping economic rewards, says minister

Saudi Arabia’s shift to renewables is reaping economic rewards, says minister
Updated 8 min 8 sec ago
Reem Walid

economic approach, feasibility studies, and solid partnerships, according to the Kingdom’s energy minister.

Speaking at the opening of the fourth edition of the Saudi Green Initiative Forum in Riyadh, which runs from Dec. 3-4, Prince Abdulaziz bin Salman emphasized that Saudi Arabia is uniquely positioned to benefit from its shift toward a sustainable energy economy, particularly in comparison to other nations.

The Kingdom boasts the second-lowest methane intensity among major oil and gas producers. It also ranks second globally in terms of crude oil carbon intensity and plans to tender 20 gigawatts of renewable capacity in 2024 — a target exceeded only by China and the US.

“We are the only country on planet Earth that is making money out of the transition. Why? Because we are honest about our transition, we don’t do things without going through economics, without feasibility studies, without even choosing solid partners,” the minister explained.

“Total is a good example. They are working with us on petrochemicals, on gas stations, on renewables,” he added.

Prince Abdulaziz further noted that part of the Kingdom’s transition strategy involves replacing one million barrels of oil per day with gas and renewable energy — a significant milestone.

He stressed that energy security should not be compromised in the transition. “By the way, you would not be able to secure the other two, which are affordability and sustainability. The reality check is that the three things have to go hand in hand, and you should not compromise, and compromising one of the things will lead you to forfeit the other two, especially energy security,” he said.

On the Kingdom’s Vision 2030, the minister expressed confidence in long-term plans, stating: “I know for certain that there will be a 2040, there will be a 2050 because it works. People are on their doors; people are held accountable. People want to deliver because they see that whatever they were they’re delivering is impacting their daily life, is improving their lot.”

He continued: “We have a lot to show, and we want to make sure that aside from our commitments, with its own durations, we want to put this event, especially this Saudi Green Initiative, to make sure that people can continue seeing us progress our progress here in this country in a voluntary way because we are self-assured that every year we shall expose the world to new achievements, new targets, new approaches, and we are not shy from gathering people to see it.”

During the first day of the event, the Ministry of Energy signed 10 agreements and memorandums of understanding with various companies.

One of the key agreements focuses on deploying a carbon capture and utilization hub in Yanbu Industrial City, in collaboration with the Royal Commission for Jubail and Yanbu. The Ministry also signed a deal with King Abdullah University of Science and Technology on cryogenic carbon capture and another with the King Abdullah Petroleum Studies and Research Center and Climeworks for a direct air capture feasibility study.

Other MoUs included partnerships with Academy 32 to support the Regional Collaboration Initiative for Emissions Reduction, and with JEDCO and Tarshid to enhance energy efficiency efforts. Additionally, the Ministry inked agreements with SAL and Tarshid for a detailed facility study, and with Lindea and the Middle East Green Initiative to develop clean cooking solutions.

A funding agreement for the Clean Cooking Initiative was also announced in collaboration with Sipchem and the Middle East Green Initiative, as well as a similar deal focused on air products.

The Ministry of Energy also revealed plans to implement carbon-cured concrete in NEOM, in partnership with Abdullah Abdin, Carbon Cure, and Gulf Cryo.

This year’s edition of the Saudi Green Initiative Forum, held during COP16, aims to tackle pressing global environmental challenges, such as land rehabilitation, carbon reduction innovations, and sustainable financing. It will also explore the role of natural solutions in helping communities adapt to climate change, while emphasizing efforts to preserve the Kingdom’s rich biodiversity, according to an official statement.

Topics: COP16 Green & Blue SGI

Aramco CEO urges balanced energy transition, highlights need for conventional fuel

Aramco CEO urges balanced energy transition, highlights need for conventional fuel
Updated 27 min 4 sec ago
Nour El-Shaeri
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Aramco CEO urges balanced energy transition, highlights need for conventional fuel

Aramco CEO urges balanced energy transition, highlights need for conventional fuel
Updated 27 min 4 sec ago
Nour El-Shaeri

RIYADH: Saudi Aramco is committing substantial investments in renewable energy and sustainable solutions, while stressing the continued importance of conventional energy sources to meet global energy demands, according to the energy giant’s CEO.

Speaking at the Saudi Green Initiative Forum in Riyadh, Amin Nasser emphasized the need to balance affordability, security, and sustainability in energy policies, warning of the risks of moving away from fossil fuels too quickly.

“We need to always ensure that we do have available, affordable energy. If we don’t do that, what we are introducing is more coal,” Nasser said.

He pointed out that conventional energy remains crucial in addressing global energy demand, with 60 percent of last year’s 2 percent global energy consumption growth being met by traditional energy sources.

“Thirty years ago, conventional energy was at around 83 percent; today it is around 80 percent. However, in absolute terms, we are using 100 million barrels of oil equivalent more today than 30 years ago. So there is growth,” he explained.

Nasser also noted the resurgence of coal, driven by its lower cost and security of supply. “Coal, which was supposed to have peaked and declined, is increasing mainly because its profile is security of supply for certain countries, and it is a lower cost,” he said.

Saudi Aramco plays a key role in Saudi Arabia’s renewable energy expansion, helping the Kingdom work toward its goal of generating nearly 130 gigawatts of renewable energy by 2030.

“We will be 20 to 25 percent invested in renewable energy in the Kingdom,” Nasser stated, outlining efforts to reduce the country’s reliance on liquid hydrocarbons.

“Today, we burn close to 1 million barrels of liquid. By 2030, 50 percent of that will be replaced by solar and wind, and 50 percent will be replaced by gas,” he added.

While the company is making substantial investments in renewable sources like solar, wind, and hydrogen, Nasser stressed the importance of a pragmatic, multi-source energy approach.

“We need a pragmatic solution that takes into consideration that one size fits all is not going to work. We need to be working in parallel on all sources of energy, ensuring it’s affordable, secure, and sustainable at the same time,” he said.

Nasser also noted that mandates and policies alone won’t drive the energy transition, citing the need for technological innovation to lower costs.

“The biggest obstacle, I would say, is that policy from certain parts of the world is not reckoning with realities—what’s happening in terms of the cost of energy and what needs to be done to transition away from fossil fuels over the long term. So that is a challenge,” he added.

One of the key hurdles, according to Nasser, is the high cost of hydrogen, which limits its scalability.

“Today, for blue hydrogen, you are looking at $200 to $250 per barrel of oil equivalent. And for green, you are looking at north of $400 per barrel of oil equivalent,” he said.

Despite these challenges, Saudi Aramco is making significant investments in hydrogen, including large-scale blue hydrogen projects with an aim to produce 11 million tonnes.

However, Nasser pointed out that global hydrogen production forecasts have been scaled back. “Just a year ago, the prediction for hydrogen by 2030 was 60 million tonnes. Today, if you look at all the forecasts, it’s 10 to 20 million tonnes. These are forecasts, in terms of commissioned on the ground—there are not that many,” he said.

Aramco’s broader sustainability initiatives include investments in carbon capture and storage, geothermal energy, and advanced fuels.

“We are looking at maintaining that leadership by continuing to invest in carbon capture and storage. We have a project of 9 million tonnes by the end of 2027, early 2028, to come on stream,” Nasser said.

The company is also piloting geothermal drilling and direct air capture projects with partners such as Siemens and GE, as well as developing e-fuels in collaboration with entities like a subsidiary of NEOM and Spain’s Repsol.

In addition, Saudi Aramco is leveraging its $7 billion venture capital fund to support early-stage startups focused on sustainable solutions.

“If you look at Aramco today, we have $7 billion venture capital for startups and early-stage startups. Most of that fund is for sustainable solutions,” Nasser said, underscoring the company’s commitment to innovation and long-term environmental responsibility.

While Saudi Aramco remains committed to renewable energy, Nasser reiterated the importance of a balanced energy transition that aligns with economic and technological realities.

“We are investing in all of it. But at the same time, we are investing in gas, we are investing in oil and petrochemicals. You can do all of that, but at the same time, economics will dictate what will be scaling up in terms of demand,” he concluded.

Topics: COP16 Green & Blue energy SGI

Governments must act to preserve land and water resources, says Saudi minister 

Governments must act to preserve land and water resources, says Saudi minister 
Updated 03 December 2024
Ghadi Joudah 
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Governments must act to preserve land and water resources, says Saudi minister 

Governments must act to preserve land and water resources, says Saudi minister 
Updated 03 December 2024
Ghadi Joudah 

RIYADH: Governments must create a clear vision and policy framework to address the urgent need for land and water preservation, Saudi Arabia’s Minister of Investment Khalid Al-Falih said during a key ministerial dialogue at COP16. 

The session, titled “Unlocking Public and Private Finance for Land Restoration and Drought Resilience,” focused on the global imperative to tackle issues that cost the global economy $10 trillion annually. 

Al-Falih highlighted that Saudi Arabia has already incorporated sustainable land management into its Vision 2030 framework, with specific policies aimed at safeguarding natural resources.

“Our vision explicitly sets out policies around how to manage our water and our land sustainably,” he said. 

However, the minister emphasized that a clear vision alone is insufficient. Governments must also underpin this vision with a clear policy framework. 

“In Saudi Arabia, we have set out several policies and laws to protect our natural environment, which includes issuing the General Environment Law, developing the national strategy for the conservation of biological diversity, setting out a clear policy on water usage, and establishing strict regulations and enforcement and implementation around hunting,” he said. 

“These policies form the foundation for protecting our natural environment,” Al-Falih noted. 

He also called for catalytic programs that unite stakeholders and inspire collaborative efforts. 

“In Saudi Arabia, we have launched the Saudi Green Initiative, which aims to plant 10 billion trees and rehabilitate 40 million hectares of degraded land,” Al-Falih said. 

He urged governments globally to adopt similar approaches to drive environmental sustainability. 

Ibrahim Thiaw, executive secretary of the UN Convention to Combat Desertification,  emphasized that the world must invest $1 billion daily to achieve land restoration goals by 2030. 

He stressed the growing pressure on land and global food systems, noting that up to 40 percent of the world’s land is already degraded. 
 
“It is estimated that by 2050, we will have to produce two times more food than the amounts we produce now,” Thiaw said, while pointing to the $2.6 trillion spent annually on harmful environmental subsidies. 

“The main issue here is, how can we repurpose our investments? How can we rearrange our resources so that we channel them toward positive outcomes rather than negative ones?,” he said.

Despite the enormity of the challenge, Thiaw expressed optimism, emphasizing the availability of solutions for land restoration. “Land restoration has several benefits for public health, the economy, and people worldwide,” he added. 

COP16 is taking place in Riyadh. AN

Thiaw also underscored the importance of both public and private finance in bridging funding gaps, citing tools like green bonds and impact investing. 

He added that “this investment should be considered an investment into our future for our children and grandchildren.” 

Achim Steiner, administrator of the UN Development Program, called for a fundamental shift in financing environmental projects, adding: “Plans often take center stage with finance subsequently treated as a secondary consideration, when it must become the foundation of our strategies with clear, actionable agendas for each country and landscape.” 

He pointed to a significant gap in private sector funding for nature-based solutions, which currently stands at $102 billion annually, well below the global target of $200 billion. 

“Public finance must de-risk investment in regenerative agriculture and ecosystem restoration, as it did for renewable energy projects 15 years ago,” Steiner said, noting that such de-risking strategies have helped attract $2 trillion in annual investments for renewable energy. 

The economic rationale for investing in land restoration is compelling. “Every dollar invested in restoration yields between $7 to $30 in benefits,” Steiner said, emphasizing the importance of aligning investments with local priorities and proven strategies. 

Mohammad Al-Jasser, president of the Islamic Development Bank, warned of the growing human and environmental risks tied to land degradation. 

“Around two billion people live in drylands, and 50 million could be displaced by 2030 due to soaring temperatures, deforestation, and ecosystem damage,” he said. 

Al-Jasser outlined the IsDB’s efforts, including $5 billion in green sukuk since 2019 and over $6 billion in public sector financing for UNCCD-aligned projects, supporting initiatives in water infrastructure, climate-resilient agriculture, and soil conservation. 

“For over five decades, the Islamic Development Bank has been at the forefront of sustainable land management and drought resilience,” Al-Jasser said, adding that the bank’s environmental initiatives have grown significantly since the 2015 Paris Agreement. 

The IsDB president outlined the bank’s significant financial commitments to tackling these challenges, highlighting support for initiatives such as water infrastructure, climate-resilient agriculture, and soil conservation programs launched since 2018. 

OPEC Fund President Abdulhamid Al-Khalifa announced a $1 billion commitment to the Riyadh Global Drought Resilience Partnership. He also highlighted the organization’s ongoing push to allocate 40 percent of its financing to climate action by 2030. “In 2023, we already achieved 34 percent,” Al-Khalifa noted, stressing that such commitments are crucial for mobilizing additional resources globally. 

Mahmoud Mohieldin, UN Special Envoy on Financing the 2030 Agenda, emphasized the need to limit global warming to 1.5 C to mitigate the severity of droughts. 

He reiterated the critical role land plays in climate action, noting that land degradation is the primary cause of biodiversity loss. 

“Half of all climate actions are related to land according to the World Bank Group, and land degradation is the single greatest cause of biodiversity loss according to the UNCCD secretariat,” Mohieldin said, going on to emphasize the strong interconnections among the 17 goals, noting that five of these directly address the critical role of land. 

Topics: COP16 Green & Blue

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TotalEnergies awarded 300MW solar project in Saudi Arabia

TotalEnergies awarded 300MW solar project in Saudi Arabia
Updated 03 December 2024
Nour El-Shaeri
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TotalEnergies awarded 300MW solar project in Saudi Arabia

TotalEnergies awarded 300MW solar project in Saudi Arabia
Updated 03 December 2024
Nour El-Shaeri

RIYADH: A 300-megawatt solar project awarded to TotalEnergies by Saudi Arabia’s Ministry of Energy highlights the company’s expanding renewable energy portfolio in the Kingdom, CEO says. 

Patrick Pouyanne, who is also the firm’s chairman, announced the project during the Saudi Green Initiative Forum, adding that TotalEnergies is already constructing a 114 MW solar plant and has now been awarded a 300 MW facility in Saudi Arabia. 

TotalEnergies’ push into renewable energy aligns with its broader global transition strategy, which currently includes 28 gigawatts of renewable capacity. 

“Today, we will announce that we have been awarded by the Ministry of Energy a 300 MW solar plant. We are already building a 114 MW, another one 300 MW,” Pouyanne stated. 

“Yes, we are investing today. TotalEnergies has around 28 GW of renewable capacity. So, you know, we are investing four periods per year. So it’s a serious business, including in the Kingdom,” he added. 

However, he emphasized that meeting the demand for reliable, affordable energy remains a pressing priority, mainly as global populations grow and emerging markets seek a higher quality of life. 

“Transitioning away in a just, orderly and equitable manner does not mean exiting tomorrow. It means that you have to find a way to meet the demand of today and as well, to prepare the future today,” he added. 

In addition to renewables, TotalEnergies is heavily invested in Saudi Arabia’s petrochemical sector. 

The company is currently working on an $11 billion petrochemical complex called Amiral in Jubail in partnership with Saudi Aramco. 

“We are investing now $11 billion to build a huge petrochemical project, what Aramco called oil-to-chemicals. You know, we are part of it. We have already built 30 percent of it. So you have 7,000 workers on the ground in Jubail today to build this giant petrochemical and chemical complex,” Pouyanne said. 

Pouyanne also addressed hydrogen as a critical enabler of the energy transition while highlighting the challenges associated with its implementation. 

“Hydrogen is an important enabler for the transition. The issue is, it’s not only the cost of constructing projects for hydrogen, which we did the engineering for one big project, as I mentioned, it’s the transport, it’s the storage, it’s the distribution when it reaches its destination. Eighty percent of the cost is there, and 20 percent or 25 percent of the cost is in the construction,” he explained. 

TotalEnergies’ activities in Saudi Arabia reflect the company’s integrated approach to energy development, balancing renewables with traditional sectors like refining and petrochemicals. 

“We do in the Kingdom what we do in France, which means refining, petrochemicals and renewables,” Pouyanne said, reinforcing TotalEnergies’ commitment to advancing energy solutions that meet both current and future needs.

Topics: COP16 Green & Blue SGI

Saudi Arabia, World Bank Group to establish global knowledge hub in the Kingdom

Saudi Arabia, World Bank Group to establish global knowledge hub in the Kingdom
Updated 03 December 2024
MOHAMMED AL-KINANI
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Saudi Arabia, World Bank Group to establish global knowledge hub in the Kingdom

Saudi Arabia, World Bank Group to establish global knowledge hub in the Kingdom
Updated 03 December 2024
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia has partnered with the World Bank Group to launch a global knowledge hub, designed to leverage expertise for sustainable development.

Through its National Competitiveness Center, the Kingdom signed a strategic agreement with the international organization to support its member countries in achieving developmental goals by sharing expertise in economic reforms.

The deal was signed by President of the WBG Ajay Banga and the Saudi Minister of Commerce Majid bin Abdullah Al-Qasabi, who also serves as chairman of the NCC, according to the Saudi Press Agency.

The Kingdom has implemented more than 800 economic and developmental reforms coordinated through various government entities and sub-committees within the NCC.

These efforts have simplified business operations in priority sectors, leading to Saudi Arabia’s ranking of 16th globally out of 67 countries in the Global Competitiveness Index by the Switzerland-based International Institute for Management Development.

Commenting on the agreement with the WBG, Al-Qasabi emphasized that the deal highlights the Kingdom’s distinguished experience in implementing economic and developmental reforms, supported by Crown Prince Mohammed bin Salman.

He added that Saudi Arabia, through its NCC, has developed a unique competitiveness model that has boosted its global standing and contributed to significant improvements in international competitiveness reports.

“This success has sparked interest from various countries, leading them to seek support in implementing similar competitive models,” the minister said.

Al-Qasabi remarked that the knowledge hub will serve as an international platform for countries to benefit from Saudi Arabia’s and the World Bank Group’s expertise in economic and developmental areas, ultimately enhancing global competitiveness.

Banga said that the hub is a crucial step in expanding global knowledge impact, particularly as economic diversification and policy reforms create more competitive and efficient business environments.

The hub’s activities will include research, advisory services, and knowledge exchange, as well as capacity building and the development of innovative solutions and policies that address drivers of competitiveness, as per SPA.

This includes enhancing the business environment, fostering productivity growth and entrepreneurship, as well as developing small and medium-sized enterprises, innovation, and trade policy. It also covers investment promotion and the development of competitive markets.

The hub will also focus on Saudi Arabia’s economic transformation, including export diversification and trade policies, as well as domestic resource mobilization and public spending.

The steering committee for the hub will include representatives from Saudi Arabia’s Ministry of Commerce, Ministry of Finance, and Ministry of Economy and Planning, along with members from the NCC and the Saudi Business Center.

In April, the NCC and the WBG announced in Washington their intention to establish a knowledge center in Saudi Arabia as part of both sides’ efforts to spread the culture of economic reforms globally.

The announcement was attended by Al-Qasabi, the Kingdom’s Ambassador to the US, Princess Reema bint Bandar bin Sultan, and Banga.

The WBG chose the Kingdom for the hub due to its pioneering efforts over the past seven years in implementing economic reforms, during which an integrated business model was developed, leading to high effectiveness in achieving reform goals and increasing commitment rates, according to SPA.

Topics: World Bank Group Saudi National Competitiveness Center

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