Saudi Arabia’s Ambitious Green Transition and Economic Strategy

Harnessing Renewable Energy and Industrial Symbiosis

In observance of International Mother Earth Day on April 22, Saudi Arabia is making significant strides in combating climate change, enhancing its green energy portfolio, and advocating for environmental sustainability through its ambitious Saudi Green Initiative (SGI).

Initiated in 2021, a prominent goal of the SGI is to decrease carbon emissions by 278 million tonnes annually by 2030 and to reach net zero by 2060. The Kingdom is pursuing this goal by investing in alternative energy sources, including wind and solar power.

Currently, the Kingdom is developing three wind energy projects, with Dumat Al-Jandal operational as the Middle East’s largest wind farm, boasting a capacity of 400 megawatts. Additionally, Saudi Arabia is home to 13 solar photovoltaic initiatives, including the Al-Henakiyah development, which is set to become one of the top five largest solar farms globally with a capacity of 1,500 MW.

Furthermore, the nation is working on a pioneering green hydrogen project in NEOM and a carbon capture initiative at Aramco’s Research Center located at the King Abdullah University for Science and Technology. These projects are geared towards producing clean energy and capturing carbon dioxide to alleviate the impact of climate change.

SGI’s objectives extend beyond clean energy; it encompasses efforts to combat desertification, preserve biodiversity, and implement eco-friendly practices, such as reducing manufacturing waste. Economic cities and special economic zones are being developed as part of a strategy to address waste associated with commerce, with a focus on attracting investments, stimulating economic development, and generating employment opportunities.

Rana Hajirasouli, the founder of The Surpluss climate tech platform in the UAE, recognizes the potential of economic cities to foster diverse industries, facilitate collaboration, and create opportunities for local sourcing.

Annual waste and surplus from manufacturers around the world amount to approximately $780 billion, a significant potential for companies to improve their profitability and lessen their environmental footprint by revamping waste management and adopting sustainable practices. Hajirasouli points out that inefficiencies extend to unused warehouse spaces and logistics as well.

Saudi Arabia has established four economic cities, including the King Abdullah Economic City in Rabigh and Jazan Economic City. These are pivotal in diversifying the nation’s economy away from oil dependence and promoting lasting environmental sustainability.

Businesses within these economic cities can reduce their environmental impact through industrial symbiosis and circular economy principles, which involve repurposing waste and by-products as raw materials for other processes. Such collaborative efforts align with sustainable development goals, emphasizing the conservation of resources, waste reduction, and environmental protection.

One such example of industrial symbiosis in action can be seen in Denmark, where excess steam from power plants is utilized by other factories, creating a closed-loop system that repurposes materials, energy, and resources.

In Saudi Arabia, the Jazan Refinery and Petrochemical Complex is pioneering a similar concept. The Jazan oil refinery, with a capacity of 400,000 barrels per day, will supply raw materials to an integrated gasification combined-cycle plant that produces power and industrial gases. This facility exemplifies how waste steam from refining processes can be captured to generate electricity in an energy-efficient manner.

These mitigation strategies and industrial symbiosis practices in Saudi Arabia’s economic cities are viewed as an ideal route to upholding sustainable operations. By promoting industry collaboration and resource sharing, these cities can bolster their environmental performance and contribute to the Kingdom’s overall sustainable development.

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