SPARK to Launch Organic Fertilization to Lock Humidity in Saudi Arabia’s Sands

With the launch of the 2022 United Nations Climate Change Conference (COP27) in Sharm El-Sheikh, which will witness the holding of the largest regional gathering in support of the two Saudi initiatives - the Green Middle East and Green Saudi Arabia - the King Salman Energy Park (SPARK) is emerging as a sustainable global energy center in the east of the Kingdom, with the vision of becoming a regional gateway for logistics services in the energy sector.

In an interview with Asharq Al-Awsat, SPARK Chairman and CEO Saif Al-Qahtani revealed a number of initiatives and future plans to minimize environmental impacts and achieve maximum benefits from green investment, by providing world-class infrastructure in the refining, petrochemical, electric power and water production industries.

Integrated system

Al-Qahtani said that work was underway to develop an industrial zone, a business district, a residential and commercial district and a training zone, in addition to the dry port and logistics services area, which stretches over an area of 3 square kilometers and includes warehouses, modern storage facilities and a customs clearance area.

With the rapid progress of the mega project, the environmentally friendly and sustainable building techniques and advanced materials adopted by SPARK will ensure that the environmental impacts are minimized and the maximum benefit is achieved, by creating opportunities and reducing operational costs, according to the CEO.

He added that SPARK sought to provide world-class infrastructure for global investors in the crude oil and gas industries, refining, petrochemical industries, electric power and water production and treatment, pointing out that the project is expected to contribute $6 billion annually to the GDP by 2035.

Maximizing sustainability

Al-Qahtani noted that the project would witness the implementation of transformational initiatives and practices, based on sustainability in line with the objectives of the Green Saudi Initiative.

He stated that SPARK sought to become an industrial city that supports the circular carbon economy and achieve zero emissions by 2040. He cited the lighting of city streets with thousands of solar lamps, which are powered by vertical photovoltaic cells and lithium-ion batteries to store energy during the day.

SPARK is expected to become an international model city that facilitates the development of sustainable energy and environmentally-friendly technical solutions, he underlined.

Soil fertilization

Al-Qahtani disclosed efforts to rationalize water consumption, noting that most of the water is reused after treatment. He added that the rainwater drainage system was designed in proportion to the natural terrain surrounding the city, to eventually pour into a natural basin located on the outskirts of the project.
Al-Qahtani unveiled an experiment conducted by SPARK to fertilize the soil with the Liquid Nano Clay technology, an organic mixture that locks humidity and essential nutrients when sprayed on the arid desert sands, thus allowing plants to receive the much needed resources that are often scarce in this type of soil.

Investors’ flow

According to Al-Qahtani, SPARK provides an integrated and flexible business environment through its advanced infrastructure and world-class ICT systems that support the success of investors and the growth of their businesses.

SPARK is committed to helping investors meet environmental, social and corporate governance requirements and standards, he emphasized.

“As part of a leading global ecosystem at the heart of energy markets... SPARK’s design provides investors with an easy access to global markets, as the joint venture with Hutchison Ports will provide a fully automated, advanced logistics area supported by a world-class multimodal dry inland port, warehouses, and support services,” Al-Qahtani said.

“Through its advanced infrastructure, readiness and integration of services, SPARK aims to support all investors, and help them document their participation in the project at every step,” he added.

He noted that, during the past three years, the city was able to attract a large number of investors and partners, stressing that 40 major companies in the field of energy and technology have started investing in the project.

In the coming years, the total direct investment in King Salman Energy Park is expected to exceed $3 billion, the CEO said.

Presented projects

Al-Qahtani stated that SPARK would encompass the largest dry port in the region with a capacity of 10 million tons, with all the necessary services to facilitate exports and imports.

He added that the dry port would be managed and operated according to the highest international standards, under a partnership agreement with Hutchison Ports, a global port operator.

In addition, Al-Qahtani stressed that SPARK supported a number of national programs that aim to increase productivity in the labor market and create more employment opportunities.

He noted that partnerships and agreements have been concluded with national universities, such as King Faisal University and Prince Mohammad Bin Fahd University, in line with the values and principles of environmental responsibility and improving operational efficiency.

Sustainability practices

The CEO of SPARK indicated that the project would adopt integrated sustainability practices, and its master plan has been developed to attract local and international industrial investors.

He added that SPARK was working to create a world-class city with industrial, commercial and residential assets that will enable its community to function and live sustainably.

Moreover, Al-Qahtani revealed that the city has launched a number of initiatives that enhance its international efforts to lead sustainability in the energy sector, including the use of fiber-reinforced polymer rods in bridges, which is the first of its kind in the Middle East, as well as the use of green concrete, which replaces almost 30% of cement in concrete mixes with recycled asphalt residues, achieving the same results in terms of durability while reducing the carbon emissions.

In the sweltering US summer, metal containers decorated with snowmen and sleighs are taking shape -- but tempers are also rising as their manufacturer grapples with President Donald Trump's steep steel tariffs.

At Independent Can's factory in Belcamp, Maryland northeast of Baltimore, CEO Rick Huether recounts how he started working at his family's business at age 14.

Huether, now 73, says he is determined to keep his manufacturing company afloat for generations to come. But Trump's tariffs are complicating this task.

"We're living in chaos right now," he told AFP.

Since returning to the presidency in January, Trump imposed tariffs of 25 percent on imported steel and aluminum -- and then doubled the rate to 50 percent.

This has weighed on operations at Independent Can, and Huether expects he eventually will have to raise prices.

Not enough tinplate

With the steady beat of presses, steel plates that have been coated with tin -- to prevent corrosion -- are turned into containers for cookies, dried fruit, coffee and milk powder at Huether's factory.

But there is not enough of such American-made tinplate for companies like his.

"In the United States, we can only make about 25 percent of the tinplate that's required to do what we do," in addition to what other manufacturers need, Huether said.

"Those all require us to buy in the neighborhood of 70 percent of our steel outside of the United States," he added.

While Huether is a proponent of growing the US manufacturing base, saying globalization has "gone almost a little bit too far," he expressed concern about Trump's methods.

Trump has announced a stream of major tariffs only to later back off parts of them or postpone them, and also imposed duties on items the country does not produce.

For now, Independent Can -- which employs nearly 400 people at four sites -- is ruling out any layoffs despite the current upheaval.

But Huether said one of the company's plants in Iowa closed last year in part because of a previous increase in steel tariffs, during Trump's first presidential term.

Price hikes

With steel tariffs at 50 percent now, Huether expects he will ultimately have to raise his prices by more than 20 percent, given that tinplate represents a part of his production costs.

Some buyers have already reduced their orders this year by 20 to 25 percent, over worries about the economy and about not having enough business themselves.

Others now seem more inclined to buy American, but Huether expressed reservations over how long this trend might last, citing his experiences from the Covid-19 crisis.

"During the pandemic, we took everybody in. As China shut down and the ports were locked up, our business went up 50 percent," he explained.

But when the pandemic was over, customers turned back to purchasing from China, he said.

"Today if people want to come to us, we'll take them in," he said, but added: "We need to have a two-year contract."

Huether wants to believe that his company, which is almost a century old after being founded during the Great Depression, will weather the latest disruptions.

"I think that our business will survive," he said, but added: "It's trying to figure out what you're going to sell in the next six months."

SPARK to Launch Organic Fertilization to Lock Humidity in Saudi Arabia’s Sands