Accelerating Energy Transition in the Middle East for a Net Zero Future

Some of the Points that I made during the Panel Discussion on 11-Dec-2023 on side of COP28. Many thanks to Fellow Panlists Mark Davison MBA CEng MIET CMgr MCMI , Temitope Onitiri , Piotr Konopka and several other personals including Pete Gettinby , Amreet Johal , Sabrina Zahor, Katie Trafford . Many thanks to PD&MS Group and RSK Group for inviting me.

The Middle East, traditionally known for its oil-rich reserves, is now at a pivotal moment in history as countries in the region are actively embracing an energy transition towards sustainability by working on their national energy diversification, expanding renewable energy, energy efficiency, and even economic diversification. Acknowledging the global imperative to address climate change, Middle Eastern nations are adopting a range of strategies and technologies to diversify their energy mix, reduce greenhouse gas emissions, and contribute to a net-zero future.

?Accelerating Energy Transition through Technology Adoption

The path to a sustainable future in the Middle East involves adopting advanced technologies across various sectors. Here are key technologies and good practices:

Solar Technologies:

Leverage abundant solar resources, encourage economic growth potential, and invest in innovative designs. Public-private partnerships, innovative design, and learning from successful models are critical.

Utilize storage capabilities through technologies like molten salt. Learning from pioneers, fostering research collaboration, and adapting to technological complexities are key practices.

Wind Power:

Diversify the energy mix with large-scale capacity. Make strategic location choices and plan capacity for optimal energy generation. Address technological adaptation in regions less familiar with offshore wind.

Hydrogen Production and Storage:

Aim to become a global hub for hydrogen. Focus on renewable hydrogen production, economic opportunities, and comprehensive planning. Integrate hydrogen within broader sustainable development initiatives.

Energy Storage Technologies:

Embrace diverse battery technologies and integrate renewable energy. Adopt multiple technologies, collaborate on implementation, and address specific needs.

Smart Grids and Digitalization:

Implement efficient energy management and data-driven decision-making. Standardize for interoperability and cybersecurity, engage in capacity-building programs, and phase implementation for cost management and technical challenges.

Nuclear Energy:

Capitalize on stable power, low carbon emissions, and diversification. Prioritize regulations, international collaboration, and public engagement to address safety, costs, and waste management concerns.

Energy Efficiency:

Strategically address energy efficiency to align with a 1.5°C scenario. Focus on reducing emissions intensity in oil and gas activities, particularly methane leaks.

CCUS Technologies:

Invest in research for more efficient and cost-effective carbon capture, utilization, and storage technologies.

Electrification of Transportation:

Promote electric vehicles and develop necessary charging infrastructure to reduce the carbon footprint of the transportation sector.

National Policies and International Collaboration:

Implement ambitious targets, reform fossil fuel subsidies, introduce carbon pricing, support clean energy innovation, and create a supportive regulatory environment. Engage in international collaboration through climate agreements, regional initiatives, research cooperation, and trade in clean energy technologies.

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A few Good Practices of Energy Tranistion in the Middle East

Efforts to Reduce Flaring from Oil & Gas Operations.

While gas flaring has increased significantly in Iraq and Libya since 2014, it has decreased in Kuwait, Qatar, Saudi Arabia, UAE and other places. Arab countries collectively flared 40 billion cubic meters per year from 2014 to 2018, representing 10% of their combined domestic consumption of natural gas in 2018. ADNOC and ARAMCO are leading the way with no-flaring or no-routine-flaring policies.

There are two notable examples that other countries can follow to promote no flaring policies: ?Norway sets an exemplary standard with its low carbon intensity in fossil fuel production. The absence of flaring since 1971 and a $70/ton CO2 carbon tax since 1991 have contributed to significant reductions in emissions. The country's strong legislative framework has facilitated a successful transition to net-zero practices.

Nigeria has demonstrated success in reducing greenhouse gas emissions by 65% from flaring since 2005. Stringent legislation has played a crucial role in driving these positive environmental outcomes.

Saudi Arabia's Subsidy Reduction Strategy:

Saudi Arabia has reduced subsidies on electricity, gasoline, and diesel, managing demand effectively. Despite this, prices remain 70% lower than the global average, signalling a commitment to transition without compromising affordability.

Oman's Renewable Hydrogen Ambitions:

Oman is gearing up for a green future by planning to produce 8.5 million tons of renewable hydrogen by 2050. This ambitious goal will be achieved through extensive solar and onshore wind installations.

Jordan's Renewable Integration:

Jordan is incorporating 10-20% renewable energy into its energy mix, showcasing a commitment to a diversified and sustainable energy future.

Sustainable Urban Development in KSA and UAE:

The Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) are leading the way with sustainable urban development projects, emphasizing renewable energy and hydrogen as key components.

?Investments by ARAMCO and ADNOC:

Energy giants ARAMCO and ADNOC are making substantial investments to reduce their scope 1 and 2 emissions. They are also actively engaging in Carbon Capture, Utilization, and Storage (CCUS) and hydrogen initiatives to mitigate emissions.

Mineral Resource Mapping:

Middle Eastern countries, including KSA, are mapping mineral resources and developing refining plants for valuable ores like lithium, anticipating a shift from fossil fuel income.

Nuclear Energy:

The Middle East is witnessing a substantial increase in nuclear capacity, with the UAE leading the way. Projects in Iran, Saudi Arabia, and Jordan are contributing to the region's nuclear energy ambitions.

Middle East Invests in World-Class Universities and Research:

Middle Eastern nations such as Saudi Arabia, Qatar, UAE, etc are investing heavily in building world-class universities and fostering research capabilities. These efforts are transforming the region's educational landscape and positioning it as a hub for innovation and scientific discovery.

Waste Valorization for Net-Zero in the Middle East:

Middle East embracing waste valorization, converting waste into energy/ chemicals, to achieve net-zero emissions. UAE leading with WTE plants, Oman and Saudi Arabia exploring WTF technologies. Waste valorization reduces reliance on landfills, provides sustainable energy and fosters economic growth.

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Disclaimer and Sources of Information:

This piece does not attempt to present a complete list of energy transition stratgies or options. Some of the good practices are indetified but there would be many more. These points were made to encourage discussion. Much of the information is based on the International Energy Agency’s latest assessments: IEA (2023), What does COP28 need to do to keep 1.5 °C within reach? These are the IEA's five criteria for success, IEA, Paris https://www.iea.org/commentaries/what-does-cop28-need-to-do-to-keep-1-5-c-within-reach-these-are-the-iea-s-five-criteria-for-success, License: CC BY 4.0