Vision 2030

Energy Minister Addresses Future Investment Initiative 2019

Riyadh, October 30, 2019, SPA -- Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy, delivered today the following speech at the Future Investment Initiative 2019 being hosted by the Public Investment Fund in Riyadh:
“Circular Carbon Economy for Sustainable Growth”
Your Royal Highnesses, your Excellencies, Ladies and Gentlemen:
Let me begin by welcoming you all to Saudi Arabia, and express how much we appreciate you attending the Future Investment Initiative. We look forward to discussing the transformational journey taking place in the Kingdom and to share ideas on sustainability of economic growth. I believe this has positive implications for the whole world.
It is a pleasure to share the stage with such esteemed speakers and friends of Saudi Arabia.
Ladies and gentlemen,
Today, we are faced with a challenge of targeting growth and development in a sustainable way. Over the past 100 years, reliable and affordable energy – mostly in the form of hydrocarbons – contributed to lifting billions out of poverty.
- But how sustainable is the current economic model?
-Can it achieve what we aspire to?
-And at what cost?
-The question remains, how do we continue to grow and develop in a sustainable way?
Saudi Arabia is one of the global energy leaders and produces over 10 million barrels per day and has around 267 billion barrels of reserves. It is one of the top 10 gas producers with over 9,000 billion cubic meters of proven gas reserves
Considering our pivotal role, it is our responsibility to find solutions through innovation and collaboration to create a sustainable framework for growth. A holistic and pragmatic approach is needed to achieve more sustainability in the economic system. To this end, the Kingdom of Saudi Arabia offers the concept of a Circular Carbon Economy.
The Circular Carbon Economy is a framework where emissions of carbon from all sectors, and all types of greenhouse gases, are addressed through the 4Rs : reduce, reuse, recycle and remove. Such a closed-loop system, much like what happens in nature, will help restore the balance of the carbon cycle
It offers a new way of addressing the challenges of sustainable development that implicitly values all options and encourages all efforts to mitigate carbon accumulation in the atmosphere while also facilitating global economic growth.
Adoption of this holistic model is vital because, as important as renewables are, and as much progress as they have made in recent years, most analyses suggests the world cannot achieve a balance between sources and sinks through renewables and reduction alone. Much of the world’s energy is consumed in sectors that are hard to decarbonize, such as heat, industrial processes and transport. So achieving a carbon balance will inevitably include fossil fuels, however their carbon emissions must be managed.
This concept is proven and not new for Saudi Arabia. Historically the Kingdom used to flare associated gases coming from oil production, such as methane. But in 1980, we embarked on a major initiative to recover those associated gases and use them to produce a variety of chemicals. This has enabled the petrochemical industry in Saudi Arabia to create thousands of jobs, industrial cities and to contribute to GDP growth . It also fueled our power plants and desalination facilities. We estimate that more than 2.8 gigatons of CO2 equivalent have been removed from the atmosphere since then. Therefore, this has enabled a future economic circularity of greenhouse gases that will create value for carbon while meeting global sustainability goals.

Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy, delivered today the following speech at the Future Investment Initiative 2019 being hosted by the Public Investment Fund in Riyadh:
“Circular Carbon Economy for Sustainable Growth”
Your Royal Highnesses, your Excellencies, Ladies and Gentlemen:
Let me begin by welcoming you all to Saudi Arabia, and express how much we appreciate you attending the Future Investment Initiative. We look forward to discussing the transformational journey taking place in the Kingdom and to share ideas on sustainability of economic growth. I believe this has positive implications for the whole world.
It is a pleasure to share the stage with such esteemed speakers and friends of Saudi Arabia.
Ladies and gentlemen,
Today, we are faced with a challenge of targeting growth and development in a sustainable way. Over the past 100 years, reliable and affordable energy – mostly in the form of hydrocarbons – contributed to lifting billions out of poverty.
- But how sustainable is the current economic model?
-Can it achieve what we aspire to?
-And at what cost?
-The question remains, how do we continue to grow and develop in a sustainable way?
Saudi Arabia is one of the global energy leaders and produces over 10 million barrels per day and has around 267 billion barrels of reserves. It is one of the top 10 gas producers with over 9,000 billion cubic meters of proven gas reserves
Considering our pivotal role, it is our responsibility to find solutions through innovation and collaboration to create a sustainable framework for growth. A holistic and pragmatic approach is needed to achieve more sustainability in the economic system. To this end, the Kingdom of Saudi Arabia offers the concept of a Circular Carbon Economy.
The Circular Carbon Economy is a framework where emissions of carbon from all sectors, and all types of greenhouse gases, are addressed through the 4Rs : reduce, reuse, recycle and remove. Such a closed-loop system, much like what happens in nature, will help restore the balance of the carbon cycle
It offers a new way of addressing the challenges of sustainable development that implicitly values all options and encourages all efforts to mitigate carbon accumulation in the atmosphere while also facilitating global economic growth.
Adoption of this holistic model is vital because, as important as renewables are, and as much progress as they have made in recent years, most analyses suggests the world cannot achieve a balance between sources and sinks through renewables and reduction alone. Much of the world’s energy is consumed in sectors that are hard to decarbonize, such as heat, industrial processes and transport. So achieving a carbon balance will inevitably include fossil fuels, however their carbon emissions must be managed.
This concept is proven and not new for Saudi Arabia. Historically the Kingdom used to flare associated gases coming from oil production, such as methane. But in 1980, we embarked on a major initiative to recover those associated gases and use them to produce a variety of chemicals. This has enabled the petrochemical industry in Saudi Arabia to create thousands of jobs, industrial cities and to contribute to GDP growth . It also fueled our power plants and desalination facilities. We estimate that more than 2.8 gigatons of CO2 equivalent have been removed from the atmosphere since then. Therefore, this has enabled a future economic circularity of greenhouse gases that will create value for carbon while meeting global sustainability goals.
The Kingdom currently operates the largest carbon capture and utilization plant in the world, turning half a million tons of CO2 annually into products such as fertilizers and methanol. We also operate one of the regions most advanced CO2 enhanced oil recovery plants that captures and stores 800,000 tons of carbon dioxide annually. Furthermore, we have a plan to deploy additional carbon capture, utilization and storage infrastructure Kingdom-wide.
We believe that nature based solutions will play an important role in removing carbon as part of the Circular Carbon Economy. Recognizing this, we are taking actions to achieve these goals, including expanding our mangrove forests and plantations, seagrass meadows and coral reefs in both the Red Sea and Arabian Gulf.
The Circular Carbon Economy is a concept that is embedded in the natural order of the world; with the 4 R’s, it becomes less challenging to achieve growth and development while realizing sustainability.
We recognize that the achievement of the Circular Carbon Economy is a grand challenge - but this challenge will ultimately create unprecedented opportunities. No single country or private sector entity can do it alone.
As Saudi Arabia hosts the G20 next year, one of our main focuses will be on energy access and development as well as on sustainable and integrated cleaner energy systems. This will provide a backbone for delivering a Circular Carbon Economy and will lead to achieving the global development and climate goals.
As I like to say, life is based on carbon so obviously carbon is not the enemy. With the Circular Carbon Economy, carbon will be the opportunity.
This is our call to action and we look forward to your collaboration and investment in all sectors that support the Circular Carbon Economy as well as our Vision 2030 goals.
I thank you for your attention and I look forward to an engaging panel discussion.

https://www.spa.gov.sa/viewfullstory.php?lang=en&newsid=1989250#1989250

 

Archivio Vision 2030