It is more than a futuristic vision; it is a reality that is right around the corner.
“The Kingdom burns 1.2 million barrels of oil every day to generate electricity and produce water,” said Ali Sayigh, director general of the UK-based World Renewable Energy Network, earlier this year during a visit to Saudi Arabia. “Some of this could be stopped through renewable energy. This would lead to a cleaner environment in the Kingdom.”
There is a twofold benefit for the Kingdom. First, sunlight is readily available across the country, with areas such as the Rub Al-Khali ideal for solar power generation both in days of clear skies and unused area for photovoltaic panels or large arrays of mirrors that concentrate sunlight on a shaft that heats up to generate steam, which in turn is used to power turbines for the generation of electricity. Turbines turning water into steam also are used for desalination plants to provide potable water.
The second benefit is preserving the country’s valuable hydrocarbon energy stream for refining into transportation fuels or petrochemical feedstock, both of which can be exported to contribute to the Kingdom’s revenue stream.
“The availability of alternative energy sources will help preserve non-renewable oil and gas resources and free up more of the production stream that can go into feedstock. These hydrocarbon feedstocks will, in turn, create ever more value-added products,” Mohamed H. Al-Mady, SABIC vice chairman and CEO, said during a keynote speech at the recent Petrotech 2010 Conference in Bahrain.
“The major consumption of fossil fuel is for energy generation, leaving non-energy uses, such as feedstock, with only a small portion. Alternative energy would preserve the non-renewable oil and gas resources in higher proportions for use as feedstock to produce value-added products.”
“The demand on utilities in the Kingdom has significantly increased,” said Mohammed Ali Trabulsi, Saudi Aramco’s executive director of pipelines, during a lecture at King Fahd University of Petroleum and Minerals in Dhahran.
“Underlying this growth are two drivers — residential end-use energy requirements and industrialization. On the residential side, the combination of high population growth, a young population, and a rising standard of living, has led to a substantial increase in the demand for housing and subsequently an increasing need for more electricity and water.”
“There is plenty of money to be made because Saudi Arabia is rich in silicon which is a key ingredient in the production of solar cells and electronic stuff,” said Sayigh during an interview earlier this year.
The Kingdom is rich in silicates, but last year Showa Shell of Japan and Saudi Aramco signed a memorandum of understanding to conduct tests and build a 10-megawatt pilot solar power plant as a first step to developing a Kingdom-wide solar energy strategy.
Ironically, Saudi Aramco noted conventional, silicone-based solar panels are less reliable in high temperatures, making them unsuitable for the Kingdom’s average 28 degrees C temperature.
Showa Shell’s proprietary silicone-free, copper-indium-selenium (CIS) panels are more durable in high temperatures. If successful, such power plants might be used for remote areas not connected to the nation’s power grid.
Trabulsi said the Kingdom should take a three-step approach to develop alternatives.
“The first is new technology in renewable energy. We need to pursue new energy technologies and develop the industries that are most economic for Saudi Arabia’s climatic and geographical locations,” he said.
“The second is to collectively engage research institutions, industries and government entities to streamline and establish the needed policies for the development of renewable energy sources on a national scale. Third, and most importantly, a major effort is needed in order to develop our own human resources and build the knowledge, skills and experience of our professionals to help in creating a new energy era for the Kingdom.”
Sayigh agreed that the Kingdom is making the right moves.
“A solar-powered desalination plant that is to be established in Al-Khafji will be the biggest of its kind. It will have a great impact and will eventually prove itself as a landmark project,” he said.
“Saudi Arabia has the resources to allocate substantial funds for research in this particular field. Keep oil under ground or maybe use it for better purposes, such as for producing medicines or chemicals. There is no point in burning it all up. Just as you have a basket of currencies, have a basket of energies: Oil, gas and renewables. There is no harm in that.”
SABIC’s Al-Mady said the strategy is applicable across the Gulf Cooperation Council member states.
“The countries of our region can and should be in the forefront of the alternative energy revolution and become key players. We have abundant sunlight and seawater, as well as landscape. We also have the financial resources to support research programs for indigenous technology development,” Al-Mady said.
“By doing so, we shall secure additional sources of energy for our nations and contribute to the world’s efforts to protect the environment. Additionally, growth of alternative energy will create thousands of good jobs in energy production, distribution and installation.”
