Arab News, Wednesday, Feb 08, 2023 | Rajab 17, 1444
SABIC plans $1.3bn investments in second stage of energy transition
Saudi Arabia: Saudi Basic Industries
Corp. is set to invest $1.3 billion in the second phase of its energy
transition, said Fahad Al-Sherehy, vice president of Energy Efficiency and
Carbon Management.
Speaking during a panel discussion at the 44th
International Association of Energy Economics Conference, the SABIC official
revealed that in the first phase of its transition worth $1 billion, the company
recorded a 10 percent drop in carbon emissions.
Reflecting on the key aspects of energy
efficiency, Al-Sherehy said it is a key enabler for decarbonization. The
official said technological advancement will play a crucial role in energy
transition and help in reducing costs as well.
Prince Sultan Al-Saud, CEO of the Saudi Industrial
Development Fund, also highlighted the importance of the latest technology in
the ongoing energy transition and energy efficiency. He called for more
investments in technology to achieve the energy targets.
“To achieve our energy efficiency target, we need
a forward-looking view of the investments in technology. The ongoing dialogue is
hindering these investments. As we look into the future, recognition in what
gets us to our goal has to be consistent with research and development to ensure
the availability of technology for future use,” the SIDF chief said.
The panelists also discussed the
cost-effectiveness of energy efficiency measures.
Tatsuya Terazawa, chairman and CEO of the
Institute of Energy Economics in Japan, divided the process to achieve energy
efficiency into three steps.
Firstly, he gave the example of adjusting air
conditioners or cooling temperatures in countries like Saudi Arabia and Egypt.
By doing so, he added, immediate results can be achieved with absolutely no
cost.
“Secondly, speed. Most energy efficiency measures
do not take time. They can be done right away, as opposed to developing
windmills and solar panels which takes years in R&D,” the expert added.
Terazawa also explained that by lowering energy
consumption, energy-importing countries would buy less fuel while exporting
nations would have more to sell.
The 44th IAEE International Conference is being
held in Riyadh from Feb. 4 to 9, in what is a first for the Middle East and
North African Region.
The event’s theme is “Pathways to a clean, stable,
and sustainable energy future,” and is being hosted by the King Abdullah
Petroleum Studies and Research Center and Saudi Association for Energy
Economics.