The Kingdom of Saudi Arabia is on the brink of becoming a key player in the carbon capture, utilization, and storage (CCUS) arena, as indicated by recent research findings. The International Energy Forum (IEF) has spotlighted the potential for the Middle East and North Africa (MENA) region to collaboratively harness CCUS technologies to facilitate an efficient energy transition.
According to the IEF, such collaborative efforts across the MENA region could catapult it to the forefront of CCUS technology, setting a global benchmark for scaling up these vital solutions. The forum encourages the adoption of supportive measures to promote development in this field.
Saudi Arabia’s Strategic Leap Forward in Energy Transition
The IEF’s report also draws attention to Saudi Arabia’s initiatives to foster advancements in CCUS, including the inception of the Voluntary Carbon Market (VCM). This market is envisioned as a cornerstone in promoting activities that reduce emissions. The VCM, a collaborative venture between the nation’s Public Investment Fund and its stock exchange, is aligned with Saudi Arabia’s aspiration to reach net-zero emissions by 2060.
Moreover, the IEF anticipates that Saudi Arabia could ascend to a global leadership position in CCUS by 2027, with the inauguration of the world’s preeminent carbon capture hub in Jubail, on the country’s east coast. A joint project between Saudi Aramco and the Ministry of Energy, the hub is expected to capture and store up to 9 million tonnes of CO2 annually by 2027.
These initiatives are part of Saudi Arabia’s broader strategy to mitigate greenhouse gas emissions and tackle climate change. The Kingdom has also introduced the Greenhouse Gas Crediting and Offsetting Mechanism, designed to encourage domestic entities to exceed national regulations in reducing and removing greenhouse gases.
IEF’s Outline for CCUS Enhancement in the MENA Region
The IEF’s report presents several recommendations to bolster the growth of CCUS within the MENA region. It underscores the necessity to increase CCUS deployment to a minimum of 5.6 gigatonnes of CO2 by 2050 to align with the objectives of the 2015 Paris Agreement and the UN Sustainable Development Goals.
Creating a robust regulatory scaffold for CCUS is critical, as per the IEF, for diminishing GHG emissions and advancing the region’s climate goals. A unified regional blueprint for CCUS could streamline regulatory processes and attract investment through financial incentives like tax credits, grants, or carbon market mechanisms.
The IEF calls for strong political direction, government-wide support, public awareness, and education to ensure the successful implementation of CCUS frameworks. Additionally, the IEF emphasizes the need for intensified research and development to refine CCUS technologies, tailoring solutions to the region’s specific industrial and environmental needs.
The report also highlights the importance of policy coherence, carbon market integration, capacity-building programs for skilled workforce development, and international cooperation to propel the CCUS sector forward in the MENA region.