TotalEnergies raises the bar with its renewable ambition in Saudi Arabia 

Special TotalEnergies raises the bar with its renewable ambition in Saudi Arabia 
A group photo of TotalEnergies directors and seniors next to a sample of the solar panels that will be applied on the rooftop of the lubricants blending plant at KAEC. (AN photo/ Adnan Mahdaly)
Short Url
Updated 16 January 2023

TotalEnergies raises the bar with its renewable ambition in Saudi Arabia 

TotalEnergies raises the bar with its renewable ambition in Saudi Arabia 

JEDDAH: The French oil giant TotalEnergies held an assembly on Dec. 19 to announce the commencement of Saudi Total Petroleum Products Co.’s solar project of installing a rooftop system on its lubricants blending plant, located at King Abdullah Economic City’s Industrial Valley. 

The solar system will be implemented by a joint venture named Saudi French for Energy Efficiency and Renewables, established in 2021 by the Jeddah-headquartered Zahid Group and French energy company TotalEnergies. 

SAFEER’s mission is to bring affordable and reliable solar energy solutions to commercial and industrial customers across Saudi Arabia. It also aims to be a home for the development of the careers of future generations of Saudis, a case study in partnerships between international leaders and local champions. 

The assembly was attended by Catherine Corm Kammoun, consul general of France in Jeddah, Amine Ghezzar, the managing director of Saudi Total Petroleum Products Co. Ltd. in Jeddah and Ahmed Tarzi, the managing director of TotalEnergies’s refining and chemical operations in Saudi Arabia. 

Arab News exclusively interviewed Ghezzar and Tarzi to discuss the solar project and its expected outcomes. 

Ghezzar has been working with TotalEnergies since 2006 and said that Saudi Total Petroleum Products is a joint venture with the Zahid group and a well-known local partner. 

“We have a world-class blending that meets all the international standards in terms of certifications. We are producing a larger range of high-quality lubricants for industrial and automotive oils. The purpose today is to install the solar panel and to cover around 50 percent of the annual consumption of our plant,” said Ghezzar. 

In line with the renewable energy goals of Vision 2030, TotalEnergies is aiming to be a world-class player in the energy transition by becoming a multi-energy company. 

Tarzi, who is also TotalEnergies’ country chair in Saudi Arabia and Bahrain, said: “We are committed to supporting the Kingdom’s Vision 2030 by increasing renewable power generation significantly, and we, as a private investor in the Kingdom, see very positively the ongoing evolutions of the legal framework for the solar projects, which we think will enhance quick development in the Kingdom once these evolutions are implemented.” 

He added, “We have a big ambition to grow in renewable energy. It is really one of the key structures and elements of our growth in the Kingdom. So, for that, we have two vehicles, including SAFEER, which is investing in solar panels on the rooftop of the lubricant plant. We are also part of different large solar projects in the different regions in the kingdom.” 

This project further reinforces the STPPs blending plant as one of the most modern facilities in the region. 

Ghezzar said, “The project is completely in line with TotalEnergies’ ambition by replacing conventional electricity with renewable power. The photovoltaic system will produce around 390 megawatt-hours yearly of clean energy, equivalent to 50 percent of the plant’s annual local consumption. This will also allow us to save 280 tons of carbon dioxide every year.” 

STPP’s path to net zero involves reducing the carbon footprint of its existing operations, as it has developed its sustainability roadmap involving the solarization of its lubricants blending plant in KAEC. This approach provides the market with cutting-edge lubricants produced sustainably by using renewable resources in its operations. Indeed, TotalEnergies KSA is also looking for more growth in service stations, lubricants, and the renewables area. 

It is worth mentioning that the company was renamed as TotalEnergies in 2021 to support a global cause, climate change. 

TotalEnergies’s Tarzi said: “For us, the movement from Total toward TotalEnergies is not only a change of name but also a change of business model. We are adapting our business model to the energy transitions and toward a low-carbon energy offer.” 

So, today TotalEnergies is present in the Kingdom through different local partnerships. For the refining business, it has joined with Saudi Aramco Total Refining and Petrochemical in Jubail, which announced the Amiral complex last week. It has ventured into the lubricant fabrication business through its network and fuel retail services. Additionally, it forayed into the solar business through SAFEER and ongoing large-scale solar farm projects. 

In terms of new projects and global partnerships, Saudi Arabian Oil Co.’s recent collaboration with TotalEnergies will build Amiral, the giant petrochemical complex with an estimated investment of around $11 billion. 

The petrochemical facility will be owned, operated, and integrated with the existing SATORP refinery located in Jubail on the eastern coast of the Kingdom. 

Tarzi said that the Amiral project is one of the most significant development investments of a French company in the Kingdom. 

“We have a very ambitious and sustainable plan for circular economies within the new Amiral project. So, it is not only petrochemicals, but we are working on a different collaboration with local actors to build a new circular economy for plastic recycling or used cooking oil through our assets as an example. Growing within the Kingdom’s solar and wind projects is one of our objectives as well.” 

Saudi Arabia’s factory sector sees 50% growth since Vision 2030’s launch: Deputy minister

Saudi Arabia’s factory sector sees 50% growth since Vision 2030’s launch: Deputy minister
Updated 18 sec ago

Saudi Arabia’s factory sector sees 50% growth since Vision 2030’s launch: Deputy minister

Saudi Arabia’s factory sector sees 50% growth since Vision 2030’s launch: Deputy minister

RIYADH: The number of factories in Saudi Arabia has increased 50 percent since the launch of Vision 2030 in 2016, according to the Deputy Minister of Industry and Mineral resources Osama bin Abdulaziz Al-Zamil.

His comments come after figures released last year showed there are now more than 10,000 industrial facilities in the Kingdom, with 1,023 factories starting operations in 2022 alone.

Speaking during the first day of the annual Saudi Industrial Renaissance Forum that took place in the Kingdom’s Al-Yamamah University, Al-Zamil affirmed reliance on the industrial and mining sectors as economic tributaries.

The deputy minister also use his speech at the event to praise the growing Saudi workforce, saying: “The bet today on our young men and women is a big and winning bet as they are the largest percentage in this country, which makes them the basic base for our transformation and change in all fields and their exceptional capabilities and permanent ambition for positive change constitute a great force for the success of the Kingdom’s vision programs and contribute to the development of the homeland.”

The Saudi Industrial Renaissance Forum focused on the vital role that the industry plays in developing and diversifying the national economy which also contributes to achieving the economic and social goals of the Kingdom’s Vision 2030.

“The forum brings together a group of speakers, experts and interested persons with specialization in lectures, discussion sessions, working papers sessions and refereed research papers on many topics, and witnesses a number of important sessions,” said Hussam bin Muhammad Ramadan, Al-Yamamah University president and chairman of the organizing committee. 

Paddy Padmanathan steps down as ACWA Power CEO after 18 years

Paddy Padmanathan steps down as ACWA Power CEO after 18 years
Updated 7 min 33 sec ago

Paddy Padmanathan steps down as ACWA Power CEO after 18 years

Paddy Padmanathan steps down as ACWA Power CEO after 18 years

RIYADH: ACWA Power’s CEO Suntharesan 'Paddy' Padmanathan resigned on Monday, reported the Saudi Stock Exchange.

The board accepted Padmanathan’s resignation, and welcomed Marco Arcelli, an energy leader with over 30 years of experience, as the new CEO, revealed ACWA Power.    

Arcelli was previously chairman at Europe’s seventh largest electricity producer Ep New Energy, and had worked at Enel for 16 years where he was CEO of Enel North America and Slovenske Elektrarne.   

ACWA Power assured that Padmanathan will remain in the company serving as a member of the board of directors.   

In a statement, the company thanked the resigning CEO for his 18 years of service, and “his dedication during that period to elevate the company’s status as a leading global company in the field of renewable power generation, water desalination and green hydrogen production which culminated by its successful listing as a public company.”  

ACWA Power is Saudi Arabia’s leading utility service provider with a net profit of SR1.5 billion ($411 million) in 2022, according to a bourse filing. The company reported 103 percent increase in its profits from the previous year.   

In 2021, the Public Investment Fund-backed firm reported a net profit of SR758.8 million.   

The bourse filing further noted that the company’s fourth quarter net profit after zakat and tax surged 94 percent to SR656.6 million, compared to SR338.85 million in the previous year. 

According to the bourse statement, the firm’s financial results in 2022 were backed by higher operating income before impairment and other expenses.   

The profits were also driven by higher contributions from development and construction management services for the projects which achieved financial close last year, adequately supported by lower project development costs.   

Closing bell: TASI rises 60 points 

Closing bell: TASI rises 60 points 
Updated 30 min 18 sec ago

Closing bell: TASI rises 60 points 

Closing bell: TASI rises 60 points 

RIYADH: Saudi Arabia’s Tadawul All Share Index increased 60.39 points on Monday – or 0.59 percent – to close at 10,218.12.

MSCI Tadawul 30 Index inched up 0.69 percent to 1,386.65, and the parallel market, Nomu, slightly edged down by 0.05 percent closing at 18,968.30.   

TASI’s total trading turnover of the benchmark index was SR4.56 billion ($1.21 billion) as 111 stocks of the listed 224 advanced and 95 receded.    

Themar Development Holding Co. was the top gainer of the day, closing the trading session up 9.91 percent at SR44.35 

The second-best performer was Alima Tokio Marine Co., increasing 9.70 percent to SR14.48.   

Elm was the third-best performer, rising 7.67 percent - or 31 points – to SR435, compared to its opening at SR404. 

Other top performers of the day were Dar Alarkan Real Estate Development Co., and Makkah Construction and Development Co. 

The biggest faller of the day was BinDawood Holding Co., which slipped by 2.96 percent to SR52.5.  

Nahdi Medical Co. is the next worst performer of the day, decreasing by 2.48 percent to SR181. 

The other poor performers were Gulf Insurance Group, Alinma Hospitality REIT Fund, and Jabal Omar Development Co. 

Non-institutional foreign investors, excluding Saudi Aramco, reduced their stake in Tadawul-listed stocks to 10.45 percent, or SR281.79 billion, which is represented by swap holders, residents, and qualified foreign investors. 

On an announcement front, Saudi National Bank's share price increased by 3.86 percent, closing at SR44.4. The bank also said in a statement that the changes in the valuation of SNB’s investment in Credit Suisse have no impact on SNB’s growth plans. 

Rawasi Albina Investment Co. announced its annual financial results for 2022, reporting a 19.54 percent increase in its net profit to SR20.8 million. Moreover, Rawasi’s share price climbed 11.98 percent, closing at SR80. 

Perfect Presentation for Commercial Services Co. also announced a tremendous increase in net profit by 63.06 percent to SR131.4 million. The company’s shares closed 3.55 up at SR175. 

CHUBB Arabia Cooperative Insurance Co. reported a 12.54 percent decrease in net profit to almost SR13.4 million compared to SR15.3 million in 2021. CHUBB’s share price decreased 0.24 percent to close at SR16.48. 

The company correlated the decline to an increase in General and Administrative Expenses an increase in Policy Acquisition Costs in higher drilling utilization and an increase in daily rate, notably in the offshore segment   

Dallah Healthcare Co. reported a net profit of SR274 billion, up 6.13 percent compared to 2021. Dallah attributed the increase to a revenue increase of 18.18 percent in 2022 to SR2.4 billion. The healthcare company’s share price slightly decreased by 0.56 percent, closing at SR141.6. 

Saudi Reinsurance Co. also announced its financial results for 2022 and reported a net loss of SR1.6 million, down 58.1 percent compared to almost SR4 million in 2021. However, its share price increased by 1.66 percent to SR14.7 per share. 

Aramco, DHL form new procurement and logistics hub JV

Aramco, DHL form new procurement and logistics hub JV
Updated 34 min 52 sec ago

Aramco, DHL form new procurement and logistics hub JV

Aramco, DHL form new procurement and logistics hub JV

RIYADH: The Saudi Arabian Oil Co., also known as Saudi Aramco, announced a new end-to-end procurement and logistics hub joint venture with logistics firm DHL Supply Chain. 

Expected to be operational in 2025, the JV aims to initially focus on the Saudi market, with plans to expand across the Middle East and North Africa region.  

The new venture aims to provide top-notch integrated procurement and logistics services to further enhance supply chain efficiency as well as sustainability in the region, the company said in a press release.   

The JV, which the company said is the first-of-its-kind hub, will provide reliable and sturdy end-to-end services to customers within the industrial, energy, chemical, and petrochemical sectors.  

“This partnership brings together two industry leaders, each with long and storied histories,” said Aramco President and CEO Amin Nasser.  

By combining the exceptional energy, chemicals and industrial supply chain ecosystem of Aramco with the shipping and logistics expertise of DHL, he said they aim to enable the procurement and logistics hub joint venture to serve as a one-stop hub for customers’ supply chain needs.  

“We anticipate that it will not only advance the economic goals of our two companies but also accelerate growth across Saudi Arabia and the MENA region,” the CEO emphasized.   

DHL Supply Chain CEO Oscar de Bok added: “By working in partnership with Aramco, we aim to provide regional and multinational businesses from these sectors access to a robust international logistics network, fostering positive economic growth while promoting sustainable activities.”  

NEOM ranks first in Forbes’ top 10 future Saudi companies

NEOM ranks first in Forbes’ top 10 future Saudi companies
Updated 43 min 6 sec ago

NEOM ranks first in Forbes’ top 10 future Saudi companies

NEOM ranks first in Forbes’ top 10 future Saudi companies

RIYADH: Saudi Arabia’s $500 billion signature giga-project NEOM has claimed the top position in Forbes’ new list of Top 10 Economies of the Future Companies in Saudi Arabia. 

NEOM is part of 40 firms that are divided into four categories by Forbes to highlight the Kingdom’s most progressive firms.  

Prepared in partnership with Saudi Arabia’s Research, Development, and Innovation Authority, the report includes the 10 most innovative companies in Saudi Arabia, with NEOM claiming the third position in this category.  

The report noted that the city relies heavily on 5G hyperconnectivity, Artificial Intelligence, robotics, purpose-built data centers, big data analytics, augmented virtual reality, and automated guided vehicles within its mega projects: Trojena, Oxagon, and THE LINE. 

It added that the Saudi crown prince has invested $1 billion in AI, including a metaverse platform in 2022, through NEOM Tech & Digital Co. 

“The Saudi Arabian government — with the support of major telecom and large industrial companies — has been developing the country’s innovation ecosystem, and these efforts are starting to show results,” said Forbes.    

The Saudi Telecom Co., also known as stc, was revealed as the Kingdom’s second Economy of the Future Co., whereas Al Rajhi Bank came in third.   

The Saudi Arabian Oil Co., also known as Saudi Aramco, led the way as the most innovative company as well as the top energy and industrial leadership company, according to the Forbes report.   

With 70 percent of its shares owned by Aramco, the Saudi chemical manufacturing company SABIC came in second in innovation and energy and industrial leadership in 2022.   

"Saudi Arabia is on the way to becoming a global innovation powerhouse, it has all the ingredients in place: World-class infrastructure, a young, educated workforce, large companies with big pockets, and supportive leadership,” added Forbes.