KAUST, NEOM Collaborate to Advance Green Economy with Hydrogen and Sustainable Fuel Technologies

NEOM's OXAGON. Photo: Asharq Al-Awsat
NEOM's OXAGON. Photo: Asharq Al-Awsat
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KAUST, NEOM Collaborate to Advance Green Economy with Hydrogen and Sustainable Fuel Technologies

NEOM's OXAGON. Photo: Asharq Al-Awsat
NEOM's OXAGON. Photo: Asharq Al-Awsat

King Abdullah University of Science and Technology (KAUST) has announced a strategic partnership with NEOM to accelerate the transformation of the Kingdom's green economy.

The collaboration focuses on developing hydrogen and sustainable fuel production technologies through three cutting-edge applied research projects.

Under this partnership, NEOM's Education, Research, and Innovation Foundation, through the Hydrogen and E-Fuels Applied Research Institute (HEFARI), is sponsoring the development of hydrogen as a renewable energy source.

KAUST researchers and scientists are at the forefront of these initiatives, showcasing progress at a recent two-day KAUST Research and Technology Park summit.

The summit brought together senior representatives from KAUST, NEOM, HEFARI, INOWA, Imperial College, Saudi Aramco, HyET, Cruise Saudi, Next7, and Dow. The attendees engaged in discussions on the ongoing projects, the challenges ahead, and the opportunities for advancing a green hydrogen economy in Saudi Arabia.

Key topics of the summit included the economic production of green hydrogen and ammonia, their critical applications in sustainable aviation fuel and marine propulsion, and the development of essential technologies such as electrolyzers, improved catalysts, and membranes.

Participants also addressed these technologies' crucial manufacturing, transportation, and storage needs.

Prominent KAUST faculty members lead the three research projects sponsored by HEFARI. Professor William Roberts, Professor of Mechanical Engineering, is spearheading efforts to develop carbon-neutral fuels for marine engines in response to new regulations to decarbonize shipping.

Professor Mani Sarathy, Professor of Chemical Engineering, is focused on reducing the costs of large-scale electrolysis technologies to produce cleaner hydrogen. Meanwhile, Assistant Professor of Mechanical Engineering Thibaut Guiberti is working on minimizing unwanted emissions from engines and turbines that utilize green ammonia as fuel.

This collaboration aligns with Saudi Arabia's ambitious goals to generate 50% of its electricity from renewable sources by 2030 and to become the world's largest producer and supplier of green hydrogen.

Additionally, it supports the Kingdom's target of achieving carbon neutrality by 2060 through the circular carbon economy approach. This strategy emphasizes replacing and localizing advanced carbon management technologies, enhancing integrated solutions to combat climate change and the Kingdom's commitment to maintaining global leadership in this critical field.



Turkish Isbank CEO Sees Challenges ahead, November Rate Cut

A Turkish flag with the Bosphorus Bridge in the background, flies on a passenger ferry in Istanbul, Türkiye September 30, 2020. (Reuters)
A Turkish flag with the Bosphorus Bridge in the background, flies on a passenger ferry in Istanbul, Türkiye September 30, 2020. (Reuters)
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Turkish Isbank CEO Sees Challenges ahead, November Rate Cut

A Turkish flag with the Bosphorus Bridge in the background, flies on a passenger ferry in Istanbul, Türkiye September 30, 2020. (Reuters)
A Turkish flag with the Bosphorus Bridge in the background, flies on a passenger ferry in Istanbul, Türkiye September 30, 2020. (Reuters)

Turkish banks will pay the price throughout next year as challenges linger from the country's economic turnaround, the chief executive of lender Isbank said in an interview, adding he expects the central bank to begin cutting interest rates this November.

CEO Hakan Aran told Reuters that Türkiye's largest private bank by assets plans to expand its footprint in payment system infrastructure, digital platforms and service banking, where it will make new partnerships and acquisitions abroad.

The growth plan comes as Isbank marks its 100-year anniversary, and as Turkish authorities seek to stamp out soaring inflation with high interest rates and other tightening measures that have squeezed financial-sector balance sheets.

"I think difficulties will also continue throughout 2025. We all will continue to pay the price for the sake of ensuring price stability and lowering inflation," Aran said in the interview at Isbank's Istanbul headquarters.

"Banks will overcome this process with a deterioration in net interest margin this year, and a deterioration in the asset quality next year."

Asset quality already began eroding in July, while net interest margins are under serious pressure, Aran added.

"Banks' return on equity is decreasing. If we were mandated to do 'inflation accounting', many banks would probably be reporting losses," he said. "Banks seem to be profitable right now because there is no inflation accounting."

The government last year excluded banks from companies applying inflation-adjusted accounting methods to their balance sheets over concerns it would result in tax revenue losses.

Since June last year, the central bank has hiked its policy rate to 50% from 8.5% to reverse years of unorthodox easy-money policies under President Tayyip Erdogan, who supported the U-turn.

Inflation dipped below 62% last month and is expected to continue easing, setting up potential rate cuts in the months ahead.

Aran predicted the central bank would begin easing monetary policy in November with a 250 basis-point cut, roughly in line with analysts' expectations. The rate would fall to 45% by year end and to 25% by end-2025, he predicted.