MANAMA: The CEO of Saudi Basic Industries Corp. (SABIC) discussed the growing importance of alternative energy sources and how they are likely to develop in the GCC at the opening of the Petrotech 2010 Conference and Exhibition in Bahrain on Sunday.
SABIC Vice Chairman and CEO Mohamed H. Al-Mady delivered his keynote speech at the Bahrain International Exhibition Center in Manama where hundreds of refining and petrochemical executives and researchers gathered to look at current challenges and future opportunities in the downstream sector of the oil and gas industry.
Al-Mady said alternative energy sources would be developed in Saudi Arabia and other GCC member states and would actually enhance the region's hydrocarbon resources by addressing growing domestic consumption and allowing more fossil fuels to be refined into high-value petrochemical feedstock for local industries and for export.
"The coexistence between alternative energy and fossil fuel deserves our serious attention and consideration," he told conference delegates. "Let us make no mistake about it, the coexistence of alternative and fossil energy amount to a fundamental shift in the global energy business and, therefore, requires a major shift in our strategies."
Rather than looking at alternatives as an unwelcome competitor, Al-Mady said they could benefit the existing energy sector.
"The availability of alternative energy sources will help preserve non-renewable oil and gas resources and free up more of the production stream that can go into feedstock. These hydrocarbon feedstock will, in turn, create ever more value-added products," he said. "The major consumption of fossil fuel is for energy generation, leaving non-energy uses, such as feedstock, with only a small portion. Alternative energy would preserve the non-renewable oil and gas resources in higher proportions for use as feedstock to produce value-added products."
He said alternative-energy growth would be significant.
"The good news is that within the next 20 years, non-fossil energy sources will have grown by as much as 80 percent," Al-Mady said. "By 2030, we fully expect that as much as 9 percent of the world's electricity will come from non-hydro renewables. These modern non-hydro renewable energy technologies have experienced the fastest rate of increase, and even with no changes to current energy policies, non-hydro renewable energy will likely increase by a gigantic 500 percent over the 20-year timeframe."
Al-Mady noted that investment in non-hydro renewable energy technologies has increased about 700 percent between 2002-2008 to $122 billion - a trend now being reflected across the GCC. He said it was important for GCC states to increase research and development subsidies for alternative energies to keep pace with developed nations in the West and Far East.
He emphasized the potential solar energy holds for the region both photovoltaic and concentrated thermal technologies.
"Currently, around 20 gigawatts of electricity is generated by photovoltaic technology. This will see a tenfold increase to 200 gigawatts by 2020. Concentrated solar power is being used for steam and electricity generation. By 2030, we will see around 20-35 gigawatts capacity in operation.
Al-Mady said the region also had all the necessary ingredients for a biofuels industry.
"Bio-fuels from algae is another example of renewable energy that can be produced in our countries," Al-Mady said. "Sunlight, seawater, CO2 and landscape are the required resources for this technology, and these are abundantly available in our region. This is a strategic choice for GCC countries with respect to the challenges ahead."
"As a technology and innovation oriented company, SABIC is actively engaged in the development of advanced materials for photovoltaic solar and hybrid electric battery application-and is also exploring bio-chemicals," he said. "Moreover, SABIC also supports research programs in regional universities and research institutes for sustainable energy developments and applications. Innovations from the chemical industry will play increasingly vital roles in the alternative energy market by providing advanced and cost-efficient technologies. Also, the chemical industry is developing new sources for bio-feedstock and bio-chemicals"
"The countries of our region can and should be in the forefront of the alternative energy revolution and become key players. We have abundant sunlight and seawater, as well as landscape. We also have the financial resources to support research programs for indigenous technology development," he said. "By doing so, we shall secure additional sources of energy for our nations and contribute to the world's efforts to protect the environment. Additionally, growth of alternative energy will create thousands of good jobs in energy production, distribution and installation."
He said it was time to embrace the potential of the new energy sources and how they could enhance the existing hydrocarbon energy stream.
"Ultimately, the world's rapidly increasing energy and raw material demand can be effectively fulfilled through an optimal combination of fossil fuel, bio-chemicals and alternative energy," Al-Mady said. "Eventually, GCC countries have an excellent opportunity to become energy exporters in addition to their traditional role in supplying oil and gas to the world. Making this happen will certainly require elaborated planning, technology partnership and regional collaboration among our GCC governments and industries."
© Arab News 2010
