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USA – Saudi Arabia set to sign deals on renewable energy projects

03 May

RIYADH: US Assistant Secretary of Commerce for Manufacturing and Services Nicole Lamb says the United States and Saudi Arabia are prepared to sign a number of deals related to the establishment of investment and service projects depending on renewable energy resources.

Ms Lamb, who is leading a 13-member business delegation to the Kingdom, expressed US support to the Kingdom on its drive to develop clean energy and that they are waiting for bigger cooperation between the two countries to realize goals put forth by the Kingdom.

She said the US administration and companies as well are concerned over the creation of investment opportunities with their Saudi counterparts, particularly on projects depending on renewable energy.

The US will extend multiple services to the Kingdom in its pursuit to lessen dependence on oil for power generation and development of alternative energy sources, environmentally secure and highly credible, particularly in light of growing demand on energy in the Kingdom, she said.

She noted that the Kingdom’s announcement of investment of $100 billion in the next 10 years for development of solar and nuclear energy will help the US business delegation explore investment opportunities in the Kingdom and strengthen ties between the two countries.

The US official, who met with Saudi officials and businessmen at the Council of Saudi Chambers of Commerce and Industry (CSCCI) touched on efforts that could be made by Saudi trade partners in solving issues related to the renewable energy in the Kingdom.

CSCCI Secretary General Fahad Al-Sultan said Saudi-US relations were built on strategic basis during the last 10 years.

He said their meeting with US delegation explored suitable mechanisms for cooperation between business sectors in both countries.

The meeting centered on three themes: Kingdom’s energy needs and its five-year plan, the Kingdom’s vision on renewable energy, and the Kingdom’s concern over building clean energy system, he noted.

He affirmed that the Kingdom has clearly opted to depend on knowledge-based economy.

Oil For Power

Saudi Arabia, the largest producer in OPEC, uses crude and refined products as fuel for power stations because it doesn’t have enough gas to generate all the power it needs and also supply industry. Liquid fuels generate about half of the country’s power, according to the state-run utility Saudi Electricity Co. (SECO) Saudi Arabia burns some 800,000 barrels a day of oil equivalent to satisfy domestic demand, Khalid Al Senani, the gas supply director at the Ministry of Petroleum and Mineral Resources, said in Doha, Qatar, on Nov. 30.

The nation’s other power plants use gas, which costs about one-fourth as much as oil on the basis of a barrel of oil equivalent, according to U.S. benchmark prices.

By burning oil to keep electricity flowing, Saudi Arabia may find it harder to maintain its global role as the crude supplier of last resort.

Related Article:  Middle East to spend US $ 180 Billion on Energy Project

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