Riyadh, Muharram 04, 1442 AH/ August 23, 2020, SPA
Saudi Arabia’s Minister of Energy, His Highness Prince Abdulaziz bin Salman bin Abdulaziz, has inked a memorandum of understanding (MoU) with the chief executive officer of NEOM, Eng. Nadhmi Al-Nasr to enhance coordination and cooperation between the two sides in the fields of energy in general , and cooperation in terms of renewable energy, green hydrogen production, application of a circular carbon economy, enhancing local content, innovation and development, and the development and application of artificial intelligence in the energy sector.At the outset of his speech on this occasion, His Highness the Minister of Energy extended his thanks and gratitude to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Minister of Defense - may God protect them - for their support to the energy sector that had the greatest impact on uniting efforts between state institutions, and enhancing its role and contribution to achieving the goals of the Kingdom's 2030 development vision.Commenting on the agreement, His Highness Prince Abdulaziz said: “NEOM is one of the most important and ambitious projects of the Kingdom’s Vision 2030, as it embodies the Kingdom’s strategies and directions towards utilizing renewable resources, such as solar and wind energy, to generate electrical energy. In addition, through its cooperation with the Ministry of Energy, it will aim to produce green hydrogen to achieve the goals of sustainability, preserving the environment, and opening the way for its export.”His Highness indicated that the areas of cooperation between the Ministry of Energy and NEOM will also include shaping the energy mix to produce electricity; supporting renewable energy projects; benefiting from the Saudi Energy Efficiency Centre’s programs; developing and applying artificial intelligence technologies; promoting electrical grid projects and their infrastructure; and applying rules of the national program for local content in the energy sector; contributing to the program of sustainability of the demand for hydrocarbons, and implementing the strategy of the circular economy of carbon. His Highness explaining that the implementation of the aspects of cooperation, which are included in the MoU, will be through a coordination team, representing the two parties, to work as the executive tool.The Kingdom of Saudi Arabia, which is the largest exporter of oil in the world, aspires through the development of these projects to become a world leader in the production and export of energy from renewable sources, in addition to the production and export of hydrogen, if the infrastructure is integrated and economic feasibility is achieved.His Highness Prince Abdulaziz praised the hydrogen project at NEOM, which he claimed is the “first step towards establishing a new and economically important activity in the Kingdom that will contribute to promoting growth, economic diversification, and reducing carbon dioxide emissions”.Eng. Nadhmi Al-Nasr emphasized the importance of the MoU, as it will reinforce NEOM's plans to be a world leader in terms of relying on renewable energy completely. He added that facing climate change requires a circular carbon economy, reduced emissions, and optimal use of carbon in the economic life cycle, including the right use of hydrogen in this field.Eng. Nadhmi Al-Nasr concluded his speech by thanking the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince for their continuous support to the NEOM company and project, stressing that this support motivates everyone to strive hard to achieve the goals of the Kingdom's Vision 2030.It is worth noting that the MoU signed was the result of continuous coordination, and technical workshops were held between the energy system and NEOM to identify areas of cooperation and develop a road map that helps the two sides achieve the ambitious national goals of the NEOM project and the energy sector.
