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Solar Energy in Saudi Arabia Attracts Japanese, French Investments

Clean energy projects are key drivers to achieving sustainability and avoiding carbon emissions. (SPA) 
Clean energy projects are key drivers to achieving sustainability and avoiding carbon emissions. (SPA) 
TT
TT

Solar Energy in Saudi Arabia Attracts Japanese, French Investments

Clean energy projects are key drivers to achieving sustainability and avoiding carbon emissions. (SPA) 
Clean energy projects are key drivers to achieving sustainability and avoiding carbon emissions. (SPA) 

A consortium consisting of Japanese Toyota Tsusho, French TotalEnergies Renewables, and Saudi Altaaqa Renewable Energy (a Zahid Group company) has completed a $100 million funding to construct a solar energy plant in the Kingdom.

 

The solar plant to be located in Wadi Ad Dawasir is the first renewable project in Saudi Arabia for Toyota Tsusho.

 

The construction of the plant, with a power generating capacity of 119MW, is expected to start in March 2025, according to a statement issued by the Japanese firm on Wednesday.

 

The project will be constructed as an independent power producer (IPP) for the sale of electricity.

 

This project will be implemented by three companies, Toyota Tsusho, TotalEnergies Renewables, and Altaaqa Renewable Energy through a joint venture company, Noor Alwadi Renewable Energy Company, the statement added.

 

Shares of Noor Alwadi Renewable Energy Company are distributed as follows: Toyota Tsusho 40%, TotalEnergies Renewables 40%, and Altaaqa 20%.

 

The Water and Electricity Holding Company (Badeel), a wholly owned company of the Public Investment Fund (PIF), and ACWA Power announced a month ago the signing of power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC) for the development, and operation of three major new solar PV Independent Power Producer (IPP) projects in Saudi Arabia.

 

The combined value of the three projects is 12.2 billion Saudi riyals ($3.25 billion).

 

The projects are part of the National Renewable Energy Program, which is supervised by the Ministry of Energy, and aims to develop 70% of the renewable energy target capacity in Saudi Arabia by 2030.

 

Moreover, Saudi Arabia has launched five projects to produce electricity using renewable energy, with a total capacity of 3,300 megawatts.

 

Saudi Arabia aims to have 50 percent renewable energy by 2030.

 

Clean energy projects are key drivers to achieving sustainability and avoiding carbon emissions.

 

Saudi Arabia also plans on achieving net zero by 2060 through more than 60 projects under the Saudi Green Initiative launched by Crown Prince Mohammed bin Salman in Oct. in 2021.

 

It aims to reduce carbon emissions by more than 278 mtpa by 2030, and plant 10 billion trees across the Kingdom.

 

 

 

 

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Business

Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
TT
TT

Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.