Saudi Arabia’s Green Energy Revolution Soars with Carbon Capture Technology!

"Saudi Power Procurement Co. Calls for Bids on 7,200MW Power Plant Projects in Central and Eastern Regions"

The Saudi Power Procurement Co. (SPPC) has issued bids for four power plant projects in Saudi Arabia, with a combined capacity of 7,200 megawatts. The projects, known as Rumah1, Rumah2, Nairyah1, and Nairyah2, will be located in the central and eastern regions of the country. Each project is designed to generate 1,800MW of power using natural gas combined-cycle technology and incorporating carbon capture methods.

The Saudi Arabian Government took over SPPC in 2021 and granted it the license to be the sole buyer of electrical energy and capacity from generators within the Kingdom. SPPC’s main objective is to align these projects with the Saudi Green Initiative (SGI), which aims to achieve net zero greenhouse gas emissions by 2060. The approach involves implementing a circular carbon economy, with the timeline dependent on advancements in technology. These initiatives are also in line with the Kingdom’s Vision 2030, a plan to enhance energy generation efficiency and reduce costs by diversifying power production. The Vision aims for a balanced electricity generation split of 50-50 between renewable sources and gas, reducing reliance on liquid fuel in the power sector. This will help Saudi Arabia achieve the optimal energy mix for its electricity production.

Saudi Arabia is at the forefront of the energy transition in the Middle East region, leading with initiatives such as the SGI and the broader Middle East Green Initiative. The SGI is a comprehensive and enduring plan to address climate concerns sustainably, with three main goals: reducing emissions, expanding forestation, and safeguarding land and sea areas. Since its launch in 2021, the SGI has initiated more than 80 projects and aims to continue this progress in the coming years.

Muneef Al-Muneef, the general director of renewable energy policies at the Saudi Ministry of Energy, highlighted the Kingdom’s progress in advancing 22.8 gigawatts of renewable energy projects. Al-Muneef emphasized Saudi Arabia’s openness to diverse technologies, such as hydro-storage and geothermal, and their potential applicability in meeting energy targets. He stated that the Kingdom does not limit itself to one technology but continuously monitors their potential and applicability.

In October 2023, Saudi utility firm ACWA Power achieved a commercial operation certificate for the second phase of the Sudair solar power project, further demonstrating the Kingdom’s commitment to renewable energy. Bandar Alkhorayef, Saudi Arabia’s Minister of Industry and Mineral Resources, reaffirmed the country’s dedication to accessing competitively priced green energy at a ceremony in December 2023. Saudi Arabia also made a strategic move in July 2023, investing $2.6 billion in the global mining industry to support the clean energy transition. Additionally, the country participated in the largest carbon credit auction initiated by the Saudi Arabia’s Public Investment Fund (PIF). Carbon credits are permits that allow entities to release a specific quantity of CO2 or other gases into the atmosphere, and they operate within a system designed to curb carbon emissions.

The investments in diverse power projects aligned with the Saudi Green Initiative demonstrate Saudi Arabia’s commitment to a sustainable energy future. With ambitious targets and a willingness to explore various technologies, the nation is paving the way for renewable energy dominance in the region.

Matt Lyons

Matt Lyons

Matt Lyons is the founder of Forestry & Carbon. Matt has over 25 years as a forestry consultant and is invoilved in numerous carbon credit offset projects.

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