Global ESG assets to hit $50tr by 2025: PIF Governor

Global ESG assets to hit $50tr by 2025: PIF Governor
 Yasir Al-Rumayyan, governor of the Public Investment Fund
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Updated 22 May 2022

Global ESG assets to hit $50tr by 2025: PIF Governor

Global ESG assets to hit $50tr by 2025: PIF Governor
  • Al-Rumayyan said that PIF is aiming to generate 70 percent of the Kingdom’s energy requirements from renewable sources by 2030


LONDON: Global environmental, social, and governance assets are on track and expected to hit $41 trillion by the end of this year, and $50 trillion by 2025, as the Public Investment Fund continues to enhance ESG integration across its portfolio, governor of the Saudi sovereign fund said.

While speaking at the Future Investment Initiative Institute regional summit in London on Friday, Yasir Al-Rumayyan said that PIF is developing its ESG strategy as a part of its broader long-term strategy aimed at achieving net-zero emissions in the country by 2060.

Hydrocarbon products: The building blocks of energy transition

The PIF Governor predicted that hydrocarbons will be the building blocks of energy transition in the future, aimed at reducing carbon emissions. He also made it clear that it is practically impossible to switch directly from fossil fuels to renewable energy sources, as it is a complex process that needs time.

Al-Rumayyan added that PIF is investing in renewable energy sources like solar power plants.

Talking about the potential of blue hydrogen, he said, “We have invested in carbon capture, this will lead us to blue hydrogen. We will be major when it comes to blue hydrogen.”

He added, “We will get rid of all liquid and focus on gas and renewable energy.”

The PIF governor also revealed that Saudi Arabia has launched seven solar and wind projects that could power 600,000 households.

PIF elevating the living quality in Saudi Arabia

Talking about the current scenario in Saudi Arabia, Al-Rumayyan revealed that a drastic transformation and progress is happening in the Kingdom, as the house ownership rate in the country went up from 47 percent to 60 percent in 2020.

He revealed that the aim is to increase the homeownership rate to 70 percent, along with creating 1.8 million jobs under PIF by 2050.

Al-Rumayyan added that PIF is aiming to generate 70 percent of the Kingdom’s energy requirements from renewable sources by 2030.

He noted that PIF is taking various steps to ensure green energy generation.

“NEOM launched the largest green hydrogen project worth $5 billion a year ago. Back to hydrogen, brown, blue or green, it has no color but the means of using it is what matters. PIF is now establishing a new hydrogen company, it will be like a mediator in many of our initiatives,” said Al-Rumayyan.


Oil up as Russian pipeline halt revives supply fears

Oil up as Russian pipeline halt revives supply fears
Updated 11 sec ago

Oil up as Russian pipeline halt revives supply fears

Oil up as Russian pipeline halt revives supply fears

NEW YORK: Oil edged up on Tuesday, reversing an early decline as worries about tightening supply were revived after Russia said oil exports to Europe on the southern leg of the Druzhba pipeline had been suspended since early August.
Russian pipeline monopoly Transneft said Ukraine had suspended oil flows via the pipeline leg because Western sanctions had prevented a payment from Moscow for transit fees from going through.
“Not that we need it at this point, but it’s another reminder of how tight the market is and how sensitive the price is to supply disruptions, particularly those from Russia,” said Craig Erlam of brokerage OANDA.
Brent crude was up $1.01 cents, or 1.1 percent, to $97.66 a barrel at 11:30 a.m. EDT (1503 GMT), a sharp rebound from the session low of $94.90. US West Texas Intermediate crude gained 75 cents, or 0.8 percent, to $91.51 a barrel, bouncing from the session low of $89.05.
Oil also got a boost from a weaker US dollar. The dollar index, which measures the currency’s value against a basket of peers, was 0.23 percent lower at 106.09 at 10:25 a.m. ET (1425 GMT). Traders awaited a US inflation report on Wednesday.
Until the Druzhba news, mounting fears that a recession could cut oil demand had offset support for crude prices from tight supply and progress in talks to revive the Iran nuclear accord.
“Early selling had been prompted by a renewed prospect of Iranian nuclear discussions that could eventually facilitate resumption of oil exports out of Iran,” said Jim Ritterbusch, president of Ritterbusch and Associates LLC in a note, but added that he considered an imminent deal unlikely.


GAC approves Zamil Development Co.’s acquisition of Itqan Capital

GAC approves Zamil Development Co.’s acquisition of Itqan Capital
Updated 5 min 27 sec ago

GAC approves Zamil Development Co.’s acquisition of Itqan Capital

GAC approves Zamil Development Co.’s acquisition of Itqan Capital

RIYADH: Saudi Arabia’s General Authority for Competition on Tuesday announced its approval for Zamil Development Co.’s acquisition of Itqan Capital.

Itqan Capital is a Saudi closed joint-stock company. 


South Korean group join hands with Aramco for Mideast expansion

South Korean group join hands with Aramco for Mideast expansion
Updated 22 min 14 sec ago

South Korean group join hands with Aramco for Mideast expansion

South Korean group join hands with Aramco for Mideast expansion

RIYADH: South Korea’s steel firm SeAH Group has partnered with Saudi Aramco to boost its expansion plans in the Middle East, according to the Korea Economic Daily. 

The group’s special steel maker, SeAH Besteel Corp. has established the joint venture SeAH Gulf Special Steel Industries with the Saudi oil giant.

The JV is set to start building the factory, with an annual capacity of 17,000 tons, in the fourth quarter of 2022. Commercial operations are likely to begin in the first half of 2025.

“We will actively explore the Middle East market with various products such as stainless steel precision tubes and seamless stainless steel pipes,” said a SeAH Changwon official.


Biden signs bill to boost US chips, compete with China

Biden signs bill to boost US chips, compete with China
Updated 09 August 2022

Biden signs bill to boost US chips, compete with China

Biden signs bill to boost US chips, compete with China

WASHINGTON: President Joe Biden on Tuesday signed a landmark bill to provide $52.7 billion in subsidies for US semiconductor production and research and to boost efforts to make the US more competitive with China’s science and technology efforts.

“The future is going to be made in America,” Biden said, calling the measure “a once-in-a-generation investment in America itself.”

Biden touted investments that chip companies are making even though it remains unclear when the US Commerce Department will write rules for reviewing grant awards and how long it will take to underwrite projects.

Some Republicans joined Biden on the White House lawn to attend the signing of the chips bill that was years in the making in Congress.

The chief executives of Micron, Intel, Lockheed Martin, HP and Advanced Micro Devices attended the signing as did governors of Pennsylvania and Illinois, the mayors of Detroit, Cleveland and Salt Lake City, and lawmakers.

The White House said the bill’s passage was spurring new chip investments. It noted that Qualcomm on Monday agreed to buy an additional $4.2 billion in semiconductor chips from GlobalFoundries’ New York factory, bringing its total commitment to $7.4 billion in purchases through 2028.

The White House also touted Micron announcing a $40 billion investment in memory chip manufacturing, which would boost US market share from 2 percent to 10 percent, an investment it said was planned with “anticipated grants” from the chips bill.

Progressives argued the bill is a giveaway to profitable chips companies that previously closed US plants, but Biden argued on Tuesday “this law is not handing out blank checks to companies.”

HIGHLIGHTS

The White House noted that Qualcomm on Monday agreed to buy an additional $4.2 billion in semiconductor chips from GlobalFoundries’ New York factory, bringing its total commitment to $7.4 billion in purchases through 2028.

The White House also touted Micron announcing a $40 billion investment in memory chip manufacturing.

The legislation aims to alleviate a persistent shortage that has affected everything from cars, weapons, washing machines and video games. Thousands of cars and trucks remain parked in southeast Michigan awaiting chips as the shortage continues to impact automakers.

A rare major foray into US industrial policy, the bill also includes a 25 percent investment tax credit for chip plants, estimated to be worth $24 billion.

The legislation authorizes $200 billion over 10 years to boost US scientific research to better compete with China. Congress would still need to pass separate appropriations legislation to fund those investments.

China had lobbied against the semiconductor bill. The Chinese Embassy in Washington said China “firmly opposed” it, calling it reminiscent of a “Cold War mentality.”

Many US lawmakers had said they normally would not support hefty subsidies for private businesses but noted that China and the EU had been awarding billions in incentives to their chip companies. They also cited national security risks and huge global supply chain problems that have hampered global manufacturing.


NRG Matters - Egypt adopts green energy strategy; DEWA adopts AI to improve services

NRG Matters - Egypt adopts green energy strategy; DEWA adopts AI to improve services
Updated 09 August 2022

NRG Matters - Egypt adopts green energy strategy; DEWA adopts AI to improve services

NRG Matters - Egypt adopts green energy strategy; DEWA adopts AI to improve services

RIYADH: On a macro level, the Egyptian government has devised a strategy to boost green energy production. Zooming in, UK’s Centrica signed a $8.4 billion agreement with Delfin Midstream to purchase liquefied natural gas. 

Looking at the bigger picture

• The Egyptian government is implementing a clear strategy for turning the country into a regional hub for green energy production and export, according to the State Information Service.

It noted that Egypt has signed several deals with global companies for green hydrogen production in the Suez Canal Economic Zone. 

Through a micro lens:

• The Dubai Electricity and Water Authority’s Research and Development Center has employed artificial intelligence, machine learning and deep learning to improve services, Emirates News Agency reported. 

The move aims to  reduce costs and carbon emissions and promote energy efficiency, smart grid integration and improve the performance of photovoltaic solar panels.

• British energy supplier Centrica has signed a £7 billion ($8.47 billion) agreement with US-based Delfin Midstream to buy liquefied natural gas from 2026, Reuters reported citing the firm.

This happens as countries across Europe seek to diversify their energy supplies following Russia’s invasion of Ukraine and a drop in gas flows from Moscow to the bloc.