Saudi green hydrogen production costs could be lowest in the world: KAPSARC
Updated 02 October 2022
Fahad Abuljadayel
RIYADH: Given its resources, infrastructure and land, Saudi Arabia is placed at a very competitive position in the green hydrogen industry, especially in terms of cost and volume capacity of the product, according to Rami Shabaneh, a King Abdullah Petroleum Studies and Research Center researcher.
Global prices of hydrogen range between $2 and $7 per kg. The Kingdom falls at the lower end of the cost curve due to low natural gas and renewable electricity prices locally.
“In Saudi Arabia, it is much lower because of the low-cost resources and high capacity factors the electrolyzers can achieve. A recent study by KAPSARC shows that reaching $1 per kg is plausible in the long term,” Shabaneh told Arab News.
“Other countries can achieve a similar levelized cost of hydrogen production, but only a few can produce the volumes required to meet the decarbonization targets,” he added.
The cost of green hydrogen is highly sensitive to renewable electricity costs and electrolyzer load factors.
“The renewable energy prices in the Kingdom are some of the lowest in the world. An auction price accepted at $10.4 per MWh is a world record low right now,” he said.
KAPSARC analyzes the resource, export and cost reduction potential of Saudi Arabia’s hydrogen production.
According to Shabaneh, despite significant decreases in hydrogen costs, the world still needs supporting mechanisms for hydrogen to substitute for traditional fuels in some sectors.
He further pointed out that having fossil fuels in the Kingdom’s energy system does not necessarily mean more emissions.
“You can still use fossil fuels to make blue hydrogen with high capture rates of GHG emissions,” he said.
Saudi Arabia is building a $5 billion green hydrogen project in NEOM, powered by renewable energy, to supply 650 tons of carbon-free hydrogen daily. The plant will see its first production in 2026.
The project will export hydrogen in the form of liquid ammonia to the world market for use as a biofuel that feeds transportation systems.
The plant will need around 4.3 gigawatts of clean energy to power it, as ACWA Power, one of three project owners, plans to use solar during the day and wind at night to eliminate the need for batteries and expensive storage solutions.
Many experts agree that green hydrogen, a carbon-friendly nontoxic gas produced using renewable energy, can play a significant role in achieving a green gas-neutral economy by 2050, helping to combat global warming.
Saudi Arabia is developing policies and regulatory instru- ments to drive technologies in hydrogen development to commercial readiness.
Saudi Arabia’s palm.hr takes the first step in regional expansion
Company to have a fully established team in Egypt and UAE by three months
Updated 15 sec ago
Nour El-Shaeri
CAIRO: Saudi-based human resources and employee experience platform palm.hr is taking its first steps in regional expansion with one foot already in Egypt and the UAE.
Founded in 2019 by Richard Schrems, Christoph Czichna and Dragan Nikolic, the service provides businesses with a portal to streamline work experiences for all teams including operations such as onboarding, vacation tracking, payroll, and offboarding.
In an interview with Arab News, Schrems, who is also the CEO, said the company will have a fully established team in Egypt and the UAE in just three months.
“We are already serving our first customers in UAE and Egypt and things are in motion to have teams in both countries within the next three months. Additionally, we are looking to offer our services to companies based across all Gulf Cooperation Council countries by the end of the year,” Schrems said.
The company has positioned itself as a regional provider of HR technology services with a mission to transform the space and allow businesses to better manage their most important asset – human resources.
Schrems described palm.hr’s business strategy as comprising three main pillars. The first is the software’s high configurability and flexibility that makes it easier to apply it to different business structures.
The second is a HR Tech Stack that is scattered across many different tools and solutions.
“We therefore are working on building the most integrated HR software in the market to merge all that information to be the single source of truth of any company’s people data. We have successfully integrated with many Saudi Government Solutions such as GOSI, Mudad and Muqeem,” he added.
The third pillar pinpoints the overload of communication tools used by companies, such as WhatsApp, email, calls, Slack, or meetings. The company provides a centralized communication hub for the organization to stay on top of all tickets and tasks.
Richard Schrems, Christoph Czichna and Dragan Nikolic founded palm.hr. (Supplied)
“Simply put, we proudly serve small and medium, growing and innovative companies that want to be people-centric organizations. Our focus currently lies on serving Saudi-based small and medium enterprises, however, throughout the year we will be offering our services across the GCC and beyond,” Schrems added.
He stated that the firm’s human centric approach gives it a competitive edge in the market where palm.hr focuses on supporting HR managers and employees through its platform.
“Many solutions were created to digitize processes; ours, however, aims to create a seamless experience for not only HR managers but just as much for their employees. That is why we have focused on not only creating a great desktop experience but combined it with intuitive and powerful mobile apps,” Schrems said.
“Both as a software and as an organization we focus on solving all the problems related to HR and work — for every stakeholder of any organization across Saudi Arabia and beyond,” he added.
Schrems stated that the level of support received from the Saudi government has been “astounding,” adding: “Every single government organization we dealt with has welcomed and supported us with open arms, which has helped us become the thriving company we are today.”
Schrems explained that the HR space still holds huge opportunities as millions of organizations are set to ride the wave of digitalization in the next couple of years.
Besides regional expansion, the company has aggressive goals in terms of product development and hiring.
Our platform will soon leverage business data to highlight Saudization achievements whether it is organization-wide or for specific professions.
Richard Schrems, palm.hr founder and CEO
Schrems added that the company is hiring talent across all functions, with its team of 70 set to double in size in the next 12 months.
“We also believe that HR tech and fintech will diverge in the future, and we will be offering financial services through partners on our platform,” he stated.
“Besides this, we are also building a dynamic content library to support customers and employees with all the insights they need about the Kingdom’s labor laws, employment and career development. We believe this will help nurture and support local talent, while attracting the best international professionals to choose to live and work in Saudi Arabia,” he added.
The company is doubling down on its product development efforts to ensure the solution is a perfect fit for clients, which means increasing more strategic HR modules and integrating artificial intelligence.
palm.hr currently stands on solid ground after it raised $5 million in a pre-series A funding round co-led by Speedinvest and RAED Ventures with participation from Wamda Capital.
Schrems stated that the company will focus on growing its presence in Saudi Arabia, Egypt and the UAE, and will thrive to raise another funding round within 12 to 18 months.
“At palm.hr, we want to make sure companies have the tools they need to remain compliant with Saudi nationalization and labor laws. Our platform will soon leverage business data to highlight Saudization achievements whether it is organization-wide or for specific professions,” Schrems said.
Former US secretary of treasury calls for bipartisan legislation to ensure safety of depositors
During the event, Steven Mnuchin discussed responsibilities, solutions after Silicon Valley Bank collapse
Updated 01 April 2023
Arab News
MIAMI: Former US Secretary of Treasury Steven T. Mnuchin has called for greater clarity and bipartisan legislation after the collapse of the Silicon Valley Bank.
“We don’t know if there’s another bank failure whether the government will or won’t guarantee all the depositors,” Mnuchin said at the Future Investment Finance forum in Miami.
“You could be a well-run midsize or regional bank today and you’re at a complete disadvantage because people are moving money to the money center panic. So, I think we need bipartisan legislation.”
“We shouldn’t have unlimited insurance, but we now need clarity because it’s unfair,” he said.
Talking about the recent collapse of SVB and the shockwaves experienced throughout the banking industry, Mnuchin explained that compared to the 2008 financial crisis, which “was about credit, a much more complicated issue to work through,” this event was a result of many missteps that could have been avoided.
“This banking crisis is all about interest rate risk, and this is simple, basic risk management 101.”
During the panel, Mnuchin discussed several key points about recent events in the sector, including the potential risk of a financial crisis caused by the Fed’s interest rate hikes and how this would impact the economy.
“The problem is most of the people we have in the financial markets in the US have never seen, quote, high-interest rates,” he said.
“Most people have been used to interest rates, short-term interest rates between zero and 2 percent. So you know, 4 percent, 5 percent is high on a relative basis.
“The economy is going to adjust pretty significantly. But as I said earlier, this is risk management 101 that a lot of people just got used to having low-interest rates forever.”
The discussion also covered the relationship between the US and China, including the need for better communication and coexistence.
“China is the second largest economy in the world. We have a responsibility to figure out how we deal with China in a proactive way,” Mnuchin said.
He added that although there were “legitimate national security issues with China, there’s a whole bunch of things that we should be doing with China, and we need to figure out how to coexist in the proper way.”
Saudi Arabia, Miami share similarities in quality of life standards experts tell FII Priority
Kingdom made quality of life a priority in Saudi Vision 2030
Cities should invest in arts and culture, panelists say
Updated 31 March 2023
Arab News
MIAMI: Saudi Arabia and Miami have a lot in common when it comes to quality of life and business opportunities, experts said at the FII Priority conference in Miami on Thursday.
Both cities have, in the last few years, they said, promoted better living standards for their citizens through socio-economic policies.
“Miami had this incredibly welcoming spirit. It was set up for success from the top down,” said Jeff Zalaznick, restaurateur and managing partner of hospitality company Major Food Group. “I’ve really gotten to understand — with Vision 2030 and the things that they (Saudi Arabia) are looking for — that there are a lot of similarities between the quality of life and business (policies) in Miami and what’s happening in Saudi Arabia.”
The Kingdom made quality of life a priority in Saudi Vision 2030 and is one of the few countries in the world to have a minister dedicated to improving quality of life for its residents.
“Everything we do is based on quality of life. It is so important to the crown prince that he set up its own ministry,” said Jerry Inzerillo, group CEO of Diriyah Gate Development Authority, adding that “positivity and optimism” are the “fuel of that country.”
In the latest World Happiness Report, Saudi Arabia was ranked No. 2 in the Arab World, and 30th in the world.
Barry Sternlight, chairman and CEO of Starwood Capital Group, pointed out that cities that have not not invest in their citizens’ quality of life have seen their population decline.
“I think that quality of life is driving market share,” he said. “It’s driving the success of cities that are focused on improving the lives of their citizens.”
Sternlight observed that the parameters individuals use to determine quality of life are evolving and are no longer entirely centered on economic concerns.
“People are looking for meaning and purpose, and whether it’s sustainable development,” he said.
Sternlight added that people consider art and culture to be key aspects of quality of life in cities and emphasized that having museums, galleries, and artistic offerings as part of the fabric of a city is essential to its success.
The CEO of real estate development firm Daccra, Craig Robins, said that building an ecosystem around art and culture is crucial and should include supporting artists, small galleries, and other related businesses.
He cited Miami Design District as an example, and explained that since its launch in the early 2000s, the neighborhood has become a center of creativity and a thriving hub for culture and business — not only for Miami but the world.
“The goal was to create a sense of community that people would really love — something that was different, and something that could be a resource for all,” Robins said.
Saudi Arabia, UAE ‘play critical role in space exploration’
Investment firm boss Brian Hook tells forum that people and funding will drive growth
Panel discussion hears ‘third space revolution’ is inspiring younger generations
Updated 31 March 2023
Arab News
MIAMI: Saudi Arabia and the UAE are playing a “critical role” in the future of space exploration, the boss of a major investment firm has told a panel of industry experts in Miami.
Brian Hook, the vice-chairman of Cerberus, told the FII forum that countries like the Kingdom and the UAE had greatly accelerated a new space race. “By putting both their people and their funding behind (it), they brought into existence this sort of new space economy,” he said.
He and other panelists examined the potential for development and investment in the space industry, and spoke about the breakthroughs and dynamics that make it appealing to the general public, investors and enterprises.
Hook said that allowing the private sector into the market had gained fresh momentum, and the overall market value was expected to surpass $1 trillion in the coming years.
“Private equity and venture capital have been funding and enabling some of the most innovative companies for space exploration,” he said.
Helene Huby, CEO of The Exploration Company, which wants “affordable, sustainable and open” space exploration, said there had been a renaissance in the industry in the last few years.
“We are living in the third revolution. The first was the Apollo mission, which was about access. The second was the industrialization of space exploration with the International Space Station,” Ruby said.
“And what we see now is a revolution that is not about access, it’s not about costs and industrialization. It’s about staying in space.”
Speakers said that current enthusiasm around space exploration and increased investments would play a critical role in addressing some of the world’s most pressing challenges, including climate change, food shortages and droughts.
“One of the things that people don’t consider is the effect that human spaceflight has not only on the people that fly but also the people on the ground,” said Jane Pointer, founder of carbon-neutral spaceflight company Space Perspective.
“Space is a great contribution to humanity,” added Alan Pellegrini, CEO of Thales North America, a defense and aerospace company.
“I was young at the time but Neil Armstrong’s landing on the moon transformed my life and inspired me to a career in aerospace. And I think it is having the same effect on younger generations today.”
“Space has always been a place where you can collaborate regardless of which nation you belong to, and I really hope that that spirit continues,” he added.
Medina Capital founder delivers cybercrime warning at FII Priority conference
Basic ‘common sense stuff’ will help people protect themselves, says Manuel Medina
Updated 31 March 2023
Arab News
MIAMI: Almost half of organizations globally will have experienced a cyberattack on their software supply chains by 2025, according to analyst firm Gartner.
As Manuel Medina, founder and managing partner of Medina Capital, said: “There are only two types of enterprises and government agencies today: the ones that have been hacked and the ones that are going to be hacked.”
Speaking at the FII Priority conference in Miami, Medina highlighted the risk of cyberattacks, and said: “The internet was not designed to do what it’s doing today.”
Globalization and technological advances, such as cloud computing, mobility and virtualization, have made the internet less secure.
Companies across a host of industries are spending billions digitizing their infrastructure, but that infrastructure is difficult to protect, he said.
On an individual level, it mostly comes down to common sense, Medina added.
Social media companies do not charge users on their platforms because they are monetizing the users themselves, and by sharing copious amounts of personal information, users are only making it easier for both social media companies and potentially hackers to access their data, he said.
“They (social media companies) take your personal identity, and everything that they do is (about) how they track you in order to get commerce and sell you stuff. So, that’s totally contradictory to protecting you.”
Medina Capital, which hires “elite hackers,” has a motto of not liking people, because “people are the weak link,” Medina said.
“You are as strong as your weakest link.”
He added: “You can have the best software and the best systems,” but “human weakness” is the reason for the collapse of a security system.
Cybercriminals do not need weapons, politics or strategy; all they need is a laptop and a network connection, and governments need to evolve and cooperate to tackle this kind of criminal, Medina said.
Prosecuting cybercriminals is difficult because of globalization and innovation whereby it is possible for some evidence or information to be stored on a server located in a different country than the one where the criminal is being prosecuted, he said.
“The system today is the same system that it was 80 years ago. So, one of the things that we need to do is bring ourselves up to date.”
Individuals, too, need to do some basic “common sense stuff” to protect themselves, such as using multifactor authentication and storing their passwords in a secure digital wallet, he said.
“You have to sacrifice a little bit of convenience in order for you to be able to sleep better at night.”
