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Saudi Energy Ministry, SABIC Sign MoU to Develop Renewable Energy Projects

The Saudi Ministry of Energy and Saudi Basic Industries Corp (SABIC) signed a memorandum of understanding (MoU) (Asharq Al-Awsat)
The Saudi Ministry of Energy and Saudi Basic Industries Corp (SABIC) signed a memorandum of understanding (MoU) (Asharq Al-Awsat)
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Saudi Energy Ministry, SABIC Sign MoU to Develop Renewable Energy Projects

The Saudi Ministry of Energy and Saudi Basic Industries Corp (SABIC) signed a memorandum of understanding (MoU) (Asharq Al-Awsat)
The Saudi Ministry of Energy and Saudi Basic Industries Corp (SABIC) signed a memorandum of understanding (MoU) (Asharq Al-Awsat)

Saudi Arabia's Ministry of Energy and Saudi Basic Industries Corp (SABIC) have signed a memorandum of understanding (MoU) to develop renewable energy projects.

The Ministry aims to support the development of the company's renewable energy projects, ensure the readiness of the transmission networks, conduct the necessary preliminary studies, and prepare tenders and awards for such projects, it said in a statement.

The Ministry focuses on supporting and encouraging the trend towards the utilization of renewable energy in the Kingdom to achieve Vision 2030, such as promoting sustainability and preserving the environment and natural resources.

It also includes empowering the private sector, enhancing the local content, localizing industries related to this sector, and providing more job opportunities in the field of renewable energy locally.

Saudi Energy Minister Prince Abdulaziz bin Salman said that support and assistance had the most significant impact in unifying efforts in energy among state institutions to enhance their contribution to achieving the goals of Vision 2030.

Vice-Chairman and CEO of SABIC Yousef Al-Benyan said the cooperation with the Ministry is one of SABIC's main potentials to achieve its net-zero emission strategy, which was announced as part of the Saudi Green Initiative.

SABIC will increase its use of renewable energy in the Kingdom to enhance its contribution to reducing greenhouse gas emissions, Benyan concluded.

The cooperation adds a new dimension to the giant oil company's commitment to enabling the development of renewable energy resources and implementing the concept of a circular carbon economy in the Kingdom, which was adopted by the Kingdom and supported by the G20 Summit during its presidency in 2020.

The Ministry of Energy is working, within the framework of renewable energy initiatives, to support the promising sector by encouraging partnerships between the public and private sectors to create a competitive national market for renewable energy.

SABIC was recently awarded the Best Recycling/Circularity Initiative at the Chemical Week's Sustainability Awards 2021 and shortlisted in the Best Sustainable Feedstock category.

The awards recognize sustainability excellence among global chemical producers. A panel of 12 industry experts selects winners.

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Kazakhstan Anticipates Completion of ACWA Power’s Wind Energy Project

ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)
ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)
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Kazakhstan Anticipates Completion of ACWA Power’s Wind Energy Project

ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)
ACWA Power announced in March that it would execute the project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. (Photo: ACWA Power)

Kazakh Ambassador to Saudi Arabia, Madiyar Menilbekov, announced that his country eagerly anticipates the completion of ACWA Power’s first wind energy project in the Zhetysu region. This project, led by the Saudi company, will have a total capacity of 1 gigawatt and an investment value of approximately $1.5 billion.
ACWA Power announced last March that it would execute this project, which will aid Kazakhstan in reaching its goal of sourcing 50% of its energy from clean resources by 2050. Construction is expected to commence in the summer of 2025.
Menilbekov told Asharq Al-Awsat that both countries “have established a solid political dialogue at a high level, along with cooperation in trade, economics, culture, and parliamentary exchange.” He expects this high-level dialogue to continue at the upcoming COP 16 summit in Riyadh.
He further emphasized that trade, economic, and investment cooperation is the cornerstone of the bilateral relationship, noting: “Both countries share a similar outlook on economic development, reflected in Kazakhstan’s Strategic Program 2050 and Saudi Arabia’s Vision 2030.”
The Kazakh ambassador highlighted that last September, the Islamic Development Bank approved financing for projects in Kazakhstan focused on water resource development, enhancing agricultural productivity, and ensuring food security, with total allocations amounting to $1.153 billion.
In tourism, he noted significant progress toward establishing direct flights between the two countries. Air Astana launched flights between Shymkent and Jeddah in October and announced a route from Almaty to Medina, bringing the total to six direct flights. Additionally, Kazakh companies in construction, oil services, and IT have recently opened offices across Saudi Arabia. The Farabi Innovation Center was inaugurated in Riyadh to attract talented entrepreneurs and innovative startups from Nur-Sultan and Central Asia to the Kingdom.
Menilbekov explained that since gaining independence, Kazakhstan’s GDP has grown 17-fold, with foreign trade reaching $139.8 billion last year. He added: “Since 1993, Kazakhstan has attracted a total of $441 billion in foreign direct investment, allowing our economy to remain one of the most dynamic in Central Asia and the post-Soviet region.”
According to Menilbekov, Kazakhstan is the world’s largest producer and exporter of natural uranium, responsible for more than 45% of global production and exports. He also noted that Kazakhstan produces 18 of the 34 raw materials identified by the European Union as “critical materials.”
Menilbekov further mentioned that Kazakhstan possesses 200 million hectares of agricultural land, with about 100 million hectares currently under regular cultivation.