Saudi Ministry of Energy, NEOM ink MoU to coordinate in energy fields
NEOM intends to rely solely on renewable energy, to produce green hydrogen, and to achieve a circular carbon economy
Saudi Arabia’s Minister of Energy, HRH 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.
The MoU also includes enhanced 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.
Commenting on the agreement, HRH 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 utilising 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.”
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 programmes; promoting electrical grid projects and their infrastructure; and applying rules of the national programme for local content in the energy sector.
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.
HRH 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,” according to the state-run Saudi Press Agency.
Eng Nadhmi Al-Nasr emphasised 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.