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.